Examining where your money is going and then creating a household budget will allow your family to save a great deal in a relatively short period of time. By creating a feasible household budget, your family can keep on top of bills and payments, and most importantly, identify areas where you can decrease spending to save money for the future.
Document exactly what you spend
To create a budget that is geared toward saving money, it's important to recognize where your income is going. Take one month and document each paycheck, bill, and all miscellaneous spending that goes on. Don't overlook anything. Everything from a soda at the gas station to trips to the grocery store can help paint a clear picture of your spending habits.
Identify areas of spending that are constant
Some areas of your budget will remain the same from month to month. This includes your mortgage or rent, your insurance, and some of your monthly bills. Begin creating a new household budget with these bills first.
Find where savings can be made
Unlike your mortgage and car payments, there are some areas of spending that are more variable. Cutting $10 from your grocery budget each week saves you $40 a month. Reduce your fuel bill by attempting to fill up every 10 days instead of every seven. Take a look at the record you've kept of your spending and identify areas where you could cut down. Budget accordingly.
Remove leftover money from your weekly budget immediately
Once the week ends and you recognize that you have money to spare, congratulate yourself. But don't simply roll that money into next week's allowance. If you've budgeted well, any money that you have left over at the end of the week shouldn't be necessary the following week. Place it in a savings account. Do the same with money you have saved from your new budget.
Never borrow money from different accounts
If part of your salary goes directly into savings or investments, never borrow from it to reconcile your household budget. Instead, cut corners next week. You'll never save money if you always recognize that you have money saved. Once money is in a savings account, pretend it's gone for good.