Creating a family budget is often a source of conflict.
Not everyone is happy when spending on extras has to be cut, and the extra steps of keeping track of where the money goes can feel like it's a hassle.
You can keep peace in the family, and still use a budget to manage expenses.
1.
Set Your Priorities Agree, as a family, on the priorities.
Perhaps it's getting out of debt, so that there's more money for fun stuff like vacations.
Or maybe the priority is to save money for the children's university or college education.
Don't set too many priorities.
While having a single priority might be ideal, it's not very realistic, so try to stick to two or three at most.
Once you've agreed on the priorities, write them down, and post the paper where everyone can see them.
It will help to remind everyone of what the budget is working towards.
2.
List Your Goals For each priority, set one or two goals.
These goals, as you accomplish them, will bring you closer the priorities you set in #1.
Make sure the goal is specific and measurable, and also make sure that, while it should be challenging, it is also an achievable goal.
Again, try to keep to just one or two goals for each priority, to keep your focus.
3.
Start working towards your goals.
Now that you've got goals and priorities, start working to meet them.
All of your financial activities should be done with these goals in mind.
Track your progress by using a computer-based budgeting tool, or with a notebook, pencil and calculator.
Create a budget that will help you work towards the goals, and have regular family meetings to discuss your progress.
4.
Evaluate your progress.
Regularly evaluate your goals and priorities.
Perhaps on a quarterly basis, meet with your family and review your progress so far.
Check off goals that have been completed, create new goals that support your priorities, or if necessary, review and revise your priorities as well.