• About
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives
  • 100 Words

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

What’s the Best Way to Make a Family Budget?

By Enero Febrero

budget 2Believe it or not, making a family budget is not as easy as it may sound. And although budgets may not be essential to keeping your finances under control, they do allow you to make calculated decisions about how to spend your income. When making a budget, it’s important to identify the right method for creating and keeping track of their budgets. The two most basic ways to do so is by using modern electronic means such as a computer-based spreadsheet, or good old-fashioned pencils and notebooks for making and storing budgets.

Electronic Sources

There are lots of available software budget options available for those who are interested in going the electronic route; Budgetpulse, Bugdetsimple, Thrive, and Pearbudget are just four examples. It is advisable to compare different software before choosing the most suitable software for making family budgets. Thankfully, all that is required in most cases is entering budget and expense data — which leaves the math to be completed by the software. From there, the bulk of the remaining work comes down to simply monitoring your budget and making sure you stay on track.

Budgeting the Old Fashioned Way

If you’re the type that prefers keeping the family budget in written form, you’re in good company — there are still millions of people who do it this way. The most common method is to use a notebook to identify all of your income sources and expenditures. Create two adjacent columns; then tabulate all of your income sources in one column and your expenditures in the other. Of course, your goal is to ensure that your household income exceeds the expenses; if not, you’ll have to prioritize your spending and reduce your unwanted expenses — preferably by cutting discretionary expenses like entertainment, while prioritizing bills and basic needs.

Photo Credit: tax credits

February 12, 2019

Comments

  1. 1

    Cindy says

    I constantly waver between the digital and paper. I’ve generally found that digital is better, but for urgent needs and focus points it makes a difference when I put pen to paper, if that makes sense. I know it may not for most people!

  2. 2

    Alex says

    I switched to electronic years ago. Using Google Sheets, my wife and I can both have access to the budget at all times. For example, if you’re shopping and wondering how much you can spend, you can check it right from your mobile device. I do this all the time. No more paper for me!

The Question of the Week:

What is the minimum annual income you need to be truly happy?

View Results

Loading ... Loading ...

Recent Posts

  • Black Coffee: Welcome to the Fun House
  • A Georgia Teacher Shows Why It Always Pays to Read the Fine Print
  • Why Extended Warranties Sometimes Do Make Sense
  • 10 Ways to Get the Most from Your Next Business Conference
  • 36 Amazing Uses for Plastic Grocery Bags
  • Black Coffee: A Ponzi for Your Thoughts
  • Grandfather Says: The Continuing Chronicles of Elaine, Part 6
  • What You Must Know Before Filing a Medical Malpractice Lawsuit
  • Million Dollar Neighborhoods Are Still Popping Up Across the US
  • Why Extended Warranties for New Tires Are A Waste of Money

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. In fact, making investment decisions based on information published here, or any other website for that matter, is more than unwise; it is folly. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Sometimes, an article may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Sign up for the weekly Len Penzo dot Com newsletter
Len Penzo dot Com Delivered Weekly
Join more than 40,000 readers and fans who enjoy personal finance and macroeconomics with an offbeat twist!
Invalid email address
Thanks for subscribing!

Popular Now:

  1. 1. Scientists Say This Clever Trick Can Help You Break Your Overspending Habit
  2. 2. 4 Online Shopping Mistakes You’re Making and How to Avoid Them
  3. 3. When Is the Right Time to Use Your Wealth Insurance (Gold & Silver)?
  4. 4. Dear Friend: Here Are 41 Reasons Why I’m Not Lending You the Money
  5. 5. Home Repair Scams: Here Are the 9 Biggest
  6. 6. Trying to Save Money on Gas? Here’s Proof That Driving Out of Your Way Rarely Helps
  7. 7. How I Fought My Parking Ticket and Beat City Hall
  8. 8. Are You Frugal or Cheap? Here’s How to Know the Difference
  9. 9. Historical Gold & Silver Benchmarks for Wages and Commodities
  10. 10. 4 Good Reasons Why Some Quarters Are Painted Red

All-Time Most Popular:

  1. 1. 19 Things Your Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Copyright © 2023 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2023