Would A Family Budget Help Single Moms?
It makes no sense to save money at a capital gain that is lower than the debt that you owe. If you have credit card debts with interest rates as high as twenty five percent then you are not really saving money. In fact, you are losing money. Use the savings and pay off the credit card debts with the highest interest rates first.
If you are living in a house and have taken out a few mortgages on that house, for example if your house is worth $125,000, and you refinance your house for over $300,000, and you have a lot of other debts, you need to see a professional financial planner to get advice on what your best approach should be.
You can use a budget calculator to measure how much money is needed for basic family need, based on the size of your family and the amount of your income. It is usually argued that the budget calculator is set too low in certain countries, and that the families would be living in poverty. Nevertheless, you should go online to view how a family budget calculator would calculate your family budget. Next time you are making your household monthly budget for your family, write down everything that you are currently spending, and compare it to what the daily budget suggests it should be.
This way you will get a very good idea of how well you are following the budget. First, you need to get a pen and paper and write down all your expenses. For example: food, mortgage or rent, gas, hydro, entertainment, transportation, insurance, other bill payments, and miscellaneous. “Miscellaneous” is basically all variables that you didn’t plan for during the month. You will see a list of basic items on the budget calculator.
After you have calculated all your expenses; minus that amount from your total monthly income. This will tell you if you are spending more than you are earning each month. Then you need to budget, that is, you need to write down a set amount of money you will spend monthly, on each of your basic items. This amount must be less that what you are currently spending; I know that because if you have a lot of bills now, you are definitely over spending.
The extra money that you have is to go towards paying off your credit card bills faster. And again, the credit card with the highest interest must be paid first; as a result you will save on interest payments in the long run. If you are spending more than your current income, then you will realize why you are in this mess to begin with. By writing down your income and expenses, you get to keep track of every penny that comes into your household.
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