The first thing to do when creating a budget is to make a list of all of your monthly income. This includes your pay from work, any self-employment income, and interest and dividends from investments. Some months you may have extra income such as bonuses or tax refunds. And if your work hours vary, your pay will fluctuate. So it’s important to figure the amount you have coming in each month.

Once you’ve listed and totaled your income, it’s time to list your expenses. Start with the necessities that are the same each month, such as rent or mortgage, car payments, insurance and loan and credit card payments. Then figure variable expenses such as electricity, groceries and gasoline. You might want to compute an average over several months to use for these figures, use the highest figure you have on record, or estimate.

Last on the list should be discretionary expenses. These are things you can live without such as entertainment, hobbies and collectibles. Use a realistic figure for these items so you can see where you stand.

Add up all of your monthly expenses. Are they more or less than your total monthly income? If they’re less, you’re off to a good start. If they’re more, you have some work to do. Look at your discretionary expenses and see where you can cut back. If you cut them out completely and still come out in the red, see if you can find ways to cut back on your variable necessity expenses. Some ideas include driving less and using coupons.

Once you have your expenses at a manageable level, you should have some extra money left over. If you have loans or credit card balances, consider using that money to pay a little extra on them. Doing so will reduce the amount of interest you pay and get you out of debt faster. Otherwise, the best course of action is to put it into savings or investments. This will help you be prepared if something unexpected happens.

A household budget plan will help you track your expenses and determine where adjustments need to be made. It can put an end to juggling bills and ease financial stress. If you don’t have a budget, now is as good of a time as any to make one.

Originating post: Tips For Getting Your Household Budget Under Control

Tips For Getting Your Household Budget Under Control is a post from: The Family Wallet.

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If you are in need of quick cash, whether to cover a budget shortfall, to pay down debt, or to grow your emergency fund, here are some legal ways to make some extra money:

Donate plasma.  If you are not opposed to this for religious reasons, donating plasma can earn you up to $300 a month.  You have to pass a short physical (they take your blood pressure and pulse and have you fill out a short medical history), and then each appointment generally takes 90 minutes.  You can read or do something else while the machine draws out your blood, separates out the plasma and puts the blood back in your body.  Best of all, you are also helping other people who are in desperate need of plasma such as burn victims.

Sell your “stuff”.  Most people have a basement full of “stuff” they no longer use.  Craigslist is an excellent place to advertise your unwanted items and make some extra money.  Beware that people on Craigslist love to bargain, so set your price low enough that people will want to buy, but high enough that you have a bit of room to negotiate.  eBay is also a good price to sell your items that are no longer needed, though I find selling on eBay can be less reliable and takes more time.

Have a no spend month.  A quick way to generate cash is to stop spending it.  Rather than grocery shopping, try to eat what you already have in your pantry and freezer.  You could save yourself a few hundred dollars by not grocery shopping for a week or a month.  Quit going out to eat.  For one month, don’t buy anything but the necessities.

Join a focus group.  Advertisers and researchers pay people to take part in their focus groups.  For an hour or two of answering questions and giving your feedback, you can earn $30 to as much as $150.  Craigslist is a great place to look to find focus groups in your area.  Simply look under Jobs in the ETC area.  Another place to looks is FindFocusGroups.com.

Return items you recently bought but haven’t used.  If you recently bought some items and have not used them and still have the receipt, consider returning them.  You can use the refund now and buy the items later if you need them.

If you have a budget shortfall or need to generate extra income, there are plenty of ways to do so.  There is no need to rely on credit cards and risk carrying a balance if you don’t want to.  Yes, you will have to work a little harder, but you can legally make extra money, and you will save yourself the expense of paying interest.

Originating post: Budget Shortfall? Here’s How to Make Money Quick

Budget Shortfall? Here’s How to Make Money Quick is a post from: The Family Wallet.

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Picking the Right Restaurant for Your Budget
1. Take advantage of restaurant week.
Many communities offer a special restaurant week when some of the most expensive eateries drop their prices to attract new business. They’ll probably limit the menu, but you’ll get sample creations from great chefs and enjoy the ambiance.

2. Search for places where kids eat free.
Look online for places where your kids can eat for free or at big discounts. Plan ahead for family vacations when you may be eating out for most meals. That way, you’ll have a variety of options.

3. Make the most of your birthday.
You can browse online to get free meals or at least a free dessert or drink for your birthday. Even if the restaurant has no official program, tell them you’re celebrating a birthday when you make your reservations and see if they’ll throw in something special.

4. Use coupons.
Sign up for daily deal notices. Pay attention to the details like one coupon per table or a drink minimum.

5. Negotiate your own discounts.
Many restaurants will offer discounts to nearby businesses to attract repeat customers. Ask your employer if they’ve got any deals in place or ask a restaurant owner if they’d consider making some kind of arrangement for customers at a nearby movie theater or gym.

6. Enjoy ethnic restaurants.
Ethnic restaurants are often a treasure trove of low prices and great food. Pick your favorite cuisine or tantalize your palate by trying something new.

Ordering Wisely

1. Spend less on water.
To avoid surprise charges on your bill, let your server know if you want tap water only. Even in expensive restaurants, it’s up to you whether you want to pay for water.

2. Evaluate the specials.
Some restaurants promote deals that make the most profits for them. It’s okay to ask for clarification on the price even if the server fails to mention it.

3. Practice portion control.
The servings in many restaurants are far more than one person needs for a single meal. Share a dish or put some aside to take home for lunch the next day.

4. Approach small plates strategically.
Small plates are a great way to dine. However, you can easily wind up with too much food that will just end up assorted into individual tablespoon-sized dollops of mismatched leftovers. Try ordering a few dishes at a time and ask the server to let you keep the menu. That way you can order more if you really want it.

5. Consider the mark up on wine.
Wine is another big profit center for restaurants. The mark up can easily be 400% or more compared to retail prices. A great wine can be worth it but consider the investment before you splurge. Meals can be fabulous without wine, too, so remember that you can always elect to save this pricey treat for only the most special occasions.

6. Go as a group.
Restaurants may be willing to design a limited fixed price menu if you let them know in advance that you’re bringing a group. Depending on your guests, be sure to have options for vegetarians and for medical needs such as diabetes and allergies.

7. Visit at lunchtime.
You can often get the same dish at lunchtime for around 20% less than the price on the dinner menu. If the restaurant is slow, they may even be willing to make your favorite dinner dish at lunch, regardless of whether it’s on the menu.

What tips do you have to eating out while sticking to your budget?

Originating post: Enjoy Eating Out While Staying On Your Budget

Enjoy Eating Out While Staying On Your Budget is a post from: The Family Wallet.

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Wants and needs are two different essentials and it is important to always put your needs ahead of your wants and then save for the items you desire.

Start by setting up shop and organizing an area that can be used solely for your budget planning. Get your bills out and categorize into house bills, car loans and credit cards bills. This will give you an idea of what your monthly bills are and where your money is going.

If after you have sorted through your bills you find that you have more than your fair share of credit card debt or have more than three cards on hand, it is time to eliminate this debt. Pay off existing credit cards and start paying with cash. Not only will this stop your credit card bills from rising, it will also help to show you what you are spending your money on and if it is really needed. Chances are that if you have to pay cash you will think about each purchase carefully. This is easier said than done, but over time you will get better and better at it.

If you do not currently have a savings account, open one. This will secure funds for any emergency that may arise in the future, and again, having this money set aside will mean that you are using cash and not increasing your credit card debt.

Needs are the everyday tools that are necessary to run your household. A place to live, a car to drive (depending on your area) and utilities are all necessities. Food and cleaning products are necessities as well. Be sure that you are purchasing these items first as they are your priorities.

Wants refer to every other thing that does not pertain to your quality of life. A television and cable are not essential to your wellbeing, no matter how much entertainment they may provide. A computer may not be necessary and neither are the other technological advances that are readily available.

By distinguishing between wants and needs, you are better able to determine how much money you can spend each month. If it does not pertain to your wellbeing, then it is not a necessity and need not be part of your household budget. Wants should only be fulfilled after your needs have been taken care of.

Originating post: Setting up a Budget: How to Differentiate between Wants & Needs

Setting up a Budget: How to Differentiate between Wants & Needs is a post from: The Family Wallet.

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In an ideal family budget situation, the family would get together on a regular basis to plan the next budget cycle. Monthly meetings and budgets work wonderfully. At these meetings family members can discuss their anticipated needs for the next month, their projected income, and any concerns. Although everyone may not be able to work their desires into the budget, everyone will be able to share in the decision-making process.

Family budgets work much better than budgets prepared by one person for two different reasons. Firstly, the old adage that two heads are better than one is true. In fact, three or four heads are even better. If responsibility for the budget falls onto one person’s shoulders, he may forget to plan for irregular expenses like semi-annual insurance premiums, school supplies, or lawn care. By gathering the entire family together to create the budget, the family stands a better chance of not allowing anything to fall through the cracks.

Family budgets also work well because the entire family is vested in these types of budgets. In households where the budget is dictated to most of the family, each member may resent having all of their spending decisions made by someone else. However, by working through the kinks of the budget as a family, each member of the family will know that his concerns and needs were considered during the creation of the budget.

The process of creating a family budget can, of course, be tweaked to fit each individual family. Families with very young children may prefer to leave them out of the monthly budget process. In these cases, the adults will simply handle the finances themselves. However, as the kids age, they should be integrated into the process as they become old enough o understand what is going on.

Originating post: Start the New Year with a Family Budget

Start the New Year with a Family Budget is a post from: The Family Wallet.

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Start by determining what your income is. For most people, this task is as easy as taking a look at your pay stub. Self-employed people however will need to work a little harder at estimating their income. Looking at the previous year’s tax return is a good place to start.

Now, you’ll need to decide how much you have to spend each month. Mortgage or rent payments, utilities (although these vary from month to month, you can estimate an average monthly amount), and debt payments will all need to be included in this figure. The idea is to work out exactly how much of your money is already committed each month. If you are afraid you’re going to forget something, try looking through your bank statements from the previous year.

Flexible spending should also be accounted for during the budget process. For instance, you know that you’re going to spend money at the grocery store each month. You should also include estimates for things like fuel for your car or clothing for you and the kids. Don’t be tempted to budget a bare bones amount that is unrealistic. Be honest and allocate funds accordingly.

Finally, don’t forget to set some savings expectations in your budget. You’re going to want to set up an emergency fund, as well as saving for big ticket purchases you plan to make later. Retirement and college savings plans should also factor into this part of your budget.

Hopefully, when you subtract all of the expenses and savings contributions you planned from your monthly income you haven’t exceeded your income. If you have, then you’ll need to go back and try to find some excess in your budget.

Originating post: Steps to Take When Creating a Family Budget

Steps to Take When Creating a Family Budget is a post from: The Family Wallet.

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If this all sounds familiar, don’t worry. You’re not alone. Many others face the same problem while they’re getting used to the world of budgeting. You’re starting off on the right foot, but then you’re forgetting the last step. After you’ve made plans for your money, you need to follow up and track where you’ve actually spend your money.

Make an appointment to sit down and analyze how you spent your money. You’ll need to save your receipts and write down any cash purchases over the course of the month. Then, break them each into the categories they belong in.

Now that you know where you spent your money, you can determine where you veered from your plan. Did you spend more than you thought you would on lunches at work? Maybe you succumbed to temptation while you were out with your girlfriends and splurged too much on new clothes. Finding out what caused you to blow your budget is the first step to fixing it.

If convenience purchases like work lunches are the culprit, you can find ways to plan ahead for your lunch. Maybe on Monday morning you didn’t have time to pack a lunch, so you gave up and went out with your co-workers. Try making your lunch before bedtime to make lunch planning easier.

For frugally-minded folks who are easily swayed by temptation from your friends, you may find that it’s easier to simply avoid the temptation. Stay away from malls if they are your weakness. Or, enlist a friend to help you stay on track with your spending. You can ask her to stop you if she sees you getting carried away.

In some cases, however, your plans may have just been unrealistic. Rising gas prices, for instance, could make it really easy to underestimate your fuel expenses for the month. You may find that you need to make adjustments to your budget each month to keep it in step with your actual expenses.

Ultimately, the way to find the leaks in your monthly budget is simply to go through your spending and add up everything you spend. Armed with the cold, hard facts about your spending, you’ll be able to fight your weaknesses and get them under control.

Originating post: How to Find Your Money Leaks and Plug Them

How to Find Your Money Leaks and Plug Them is a post from: The Family Wallet.

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