How to make a budget for your family
Family budget
A monthly family budget is a foundational step towards financial well-being. Family budgeting requires collaboration of all members, planning and commitment.
Here are the steps to create a monthly budget and effectively track a family’s financial progress.
Data gathering
Discussions about goals, expectations and concerns is a must. The first step is to gather relevant financial details, income, expenses, monthly payouts and loan obligations.
A bank statement of the past six months to a year can help.
Monthly investments
After establishing the family’s financial goals, a fixed monthly amount needs to be set aside for these. A financial planner can help draw up goals and an investment plan to achieve these.
Realistic budget
Allocate funds to categories such as housing, utilities, groceries, transportation, savings and entertainment.
Also set out some amount or percentage of budget for a contingency fund to meet unexpected expenses.
Use technology
Several online budgeting apps or templates in the form of spreadsheets can help streamline the budgeting process. These tools simplify tracking expenses, categorising spending and generating reports.
Review and changes
It is important to schedule monthly and quarterly reviews of the budget and make adjustments based on changing circumstances.
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
