Financial Planning for the Family Budget: Easy Tips From the Experts

Financial Planning for the Family Budget:  Easy Tips From the Experts

One of the most useful financial habits is keeping a family budget. Writing down and analyzing income and expenses is necessary to set financial goals, achieve them and not to make impulse and unnecessary purchases. There is a perception that budgeting reduces the standard of living, but this is absolutely wrong: the standard of living only increases because unnecessary spending disappears, and the family can acquire the values it really needs.


To make a family financial plan, or family budget, you need to analyze your income and make a spending plan. For the first month, it’s enough to write down all income and expenses, not particularly correcting them. And by the end of the month, you will be horrified at where the money goes. Unnecessary spending is 10 to 50% if you don’t keep a budget.


Got a paycheck, hit a jackpot while enjoying best bookmaker, or received other income? Don’t rush to spend it all at once. We recommend using the three-basket principle. Put 10% into the first basket, that’s a reserve. The rest of the money we put aside for daily, necessary expenses: utilities, food, rent, gasoline, telephone, and Internet charges. And only after these expenses, the rest of the money in the third basket can be spent on pleasures: buying expensive alcohol, soap bubbles, or going to the circus. Or you can put some of it into the first basket.

Family Budget Types

It is customary to distinguish several types of family budget. It can be joint, separate, mixed, and single.


All money earned is put into a common pot, and the family council decides what it will be spent on. This can cause discord in the family because, as a rule, family members have different incomes and different desires.


Part of the money from each family member goes into the common pot, and some is left for personal needs. Common money is spent on expensive purchases, joint travel, and real estate. And everyday expenses are divided among family members or assigned to the husband or wife. This type of family budget is suitable for families with average incomes and above who are not financially strapped.


Each family member has their own budget, both spouses earn. And they decide in advance who buys groceries, who pays for utilities and rent. Real estate, cars – each have their own. This type of budget is becoming increasingly popular in Europe.


This option is suitable for those families where only one person earns money. He decides where the money should be spent.


There are different methods of budgeting. You can write down income and expenses with a pen in a notebook in the old-fashioned way, and collect receipts and bills. You can keep a spreadsheet in Excel, which is a perfectly acceptable option. There are also many mobile applications for managing the family budget. In addition, some bank mobile apps have built-in tools for managing your personal budget.


Keeping a family budget will help you analyze where your money is spent, create financial goals and fulfill them. And it will definitely make you think about increasing your income.

Tips for Managing the Family Budget

Lastly, a few tips on family budgeting:

  • Form a safety cushion before you invest.
  • Calculate how much an hour of your life is worth.
  • Don’t skimp on the little things, skimp on the big things.
  • Always set aside a reserve for any income.


These are just basic tips, but they can really help you save and get some cash for the things you want.