Family budgeting tips for 2021

As a parent, working out the monthly family budget can be hard work. It’s often a bit of a juggling act with so many household bills needing to be paid and other costs factored in. However, if you’re looking to tackle the budget for the new year, here are some excellent tips to get your family household budget ship shape and working for you.

How to budget with a family

One of the first things to do is to recognise that every month is different. Some months will be more expensive than others where your outgoings will be considerable and then other months these will be lower so you can save, save, save!

Write it all down

Being realistic with your budget is an essential part in making sure your budget works for you and your family. Open up your online banking and make a note of all the direct debits and standing orders you may have that you have already committed yourself to. These will be paid autonomously but it’s important to remember to have money in the bank for them.

These outgoings will probably include rent or mortgage, household utilities such as gas, electric and water. If you have a car it will include car payments, car insurance, tax and MOT fees, and not forgetting monthly petrol costs. Other expenditure may include monthly allowances for clothes, childcare fees and pet fees including VET insurance. Don’t forget to check out www.insurancehero.org.uk to shop around for your policies as you can save money by changing policies and ensuring they meet your needs. 

Once you have a list of all your outgoings, write down what sources of income you have. This can include any salaries, pensions or benefits. When you have a list of your income sources, these can be tallied up to see how your income and expenditure match up.

Be realistic

It’s really important to be realistic with your household budget as there will only be a limited sum of money per month to use on your bills. Pay off as much of your debt monthly as you can afford by making payment above the minimum. However, this isn’t easily done and can only be done if you’ve allocated any remaining monies on food and additional luxuries you may pay out for.

Shop around for insurance

Any responsible adult will have numerous insurances to pay for every month. These payments may include house contents and buildings insurance, car insurance, life insurance and health insurance. You never know when life throws a curveball and having those insurances in place can help your little family should the worst happen. However, you really don’t need to break the bank with insurances and it’s definitely worth shopping around for the best deals for your family. Protect Your Family allows you to compare available insurances to make sure you don’t spend over the odds. The website allows you to compare products to make sure you have the right cover for your family.

One practical next step for families is to include local quotes in your comparison, since premiums and available coverages can vary significantly by area. Local independent brokers often pull rates from multiple carriers and can point out cover differences that matter to households, such as endorsements for regional weather risks. For residents in and around Dayton, services like insurance Dayton can provide quick, no-obligation quotes and help tailor policies to a family’s specific needs. That way you compare meaningful cover, not just headline prices.

Keep your spreadsheets up to date

Having a budget spreadsheet is an ideal way of sticking to your budget, but it will only work if it’s accurate and you keep it up to date. You will always know what money is due to go out and what money is coming in. Keeping your spreadsheet up to date will help you plan your month ahead and can be really helpful in deciding whether you can afford that little luxury at the end of the month.

Can you save a little?

After budgeting your monthly income and outgoings, you may be able to afford saving a little of income every month in a separate bank account. These savings don’t have to be huge but little and often can really add up. You’ll soon forget that these additional savings are being stored for future use (not forgetting your retirement) and can be a useful source of income should you need to access them.

Budgeting is different for everyone and no two households are the same. Taking control of your finances each month and budgeting may save you unnecessary stress in the future.