How do you make a family budget?

Family Budget

A budget is simply an analysis of how much money comes in and how much money goes out.

• Start by listing your income from all sources. Then, list your "fixed" expenses — those that are the same each month — such as your mortgage payments or your rent, car payments or insurance premiums.
• Next, list the expenses that vary, such as entertainment, recreation, or clothing. Writing down all your expenses — even those that seem insignificant — is a helpful way to track your spending patterns, identify the expenses that are necessary and prioritize the rest. The goal is to make sure you can make ends meet on the basics: housing, food, health care, insurance and education.

Your public library has information about budgeting and money management techniques. Low cost budget counseling services that can help you analyze your income and expenses and develop budget and spending plans also are available in most communities. Check your Yellow Pages or contact your local bank or consumer protection office for information about them. In addition, many universities, military bases, credit unions, and housing authorities operate nonprofit counseling programs.

Another FAQ Farmer suggests a technique called "Reverse Budget":

Small business financial consultants have been teaching it for years. Basically what you do is make a list of all the expenses you want, vacation once a year, Christmas, yearly mortgage total, car payments, dinner out...you get the idea. Anyways, add that all up and see what you need to make to be happy and avoid crediting fees. Seven out of ten people already make their ideal amount they just don't know because they're not looking at it backwards. If you're not making that amount, find a way to do so. Never limit yourself by the money you make.