How do I Write a Family Budget?

1). Determine what necessary, fixed expenses you have each month. Fixed expenses include your mortgage or rent, car payments or other transportation costs and utilities.
2). Figure out your more fluid expenses, such as your grocery bill and health care expenses. Also estimate how much you spend on the "little things," such as a daily candy bar from the vending machine, a 2cup of coffee or a weekly trip to the movies. You may find it helpful to record each expense for a week or a month before writing your budget to find out just how much you spend.
3). Determine the monthly cost of irregular expenses, such as a twice-annual car insurance payment or an annual dental exam. Divide the cost of an annual expense by 12 to find the monthly cost. Divide the cost of a semi-annual payment by six to figure out the monthly cost.
4). Calculate your family income, either after tax or before if you take out taxes yourself. Include every form of income that supports your family.
5). Figure out your monthly debt payments, if any. Debt includes any credit card balances or student loans you have.
6). Record your total monthly income in one box on the spreadsheet. Make a box for each expense. For example, have one box for housing costs, one for car expenses, one for groceries, and so on.
7). Subtract all expenses from your total income. If your total expenses are less than your income, stash any extra money into a savings account. You may consider opening a college savings account for your children or an individual retirement account for yourself. You may want to funnel some of the extra money to paying down any debt you have.
8). Find ways to cut down on your monthly expenses if you spend more than you earn. For instance, skip the daily candy bar or cup of coffee. If you feel that you simply can't cut your expenses down, brainstorm ways to earn more money.
9). Track your spending and earnings to make sure you are staying on track throughout the month. Record each purchase or payment in the box next to the appropriate expense. At the end of the month, add up the expenses to see if you stayed on budget.