Household Budgeting - How To Have Financial Freedom With These Simple Budgeting Tips (Yes, Simple)

A quote that relates to household budgeting - "Money can't buy happiness, but neither can poverty." Leo Rosten - US (Polish-born) author (1908 - ).

This may be true, however, we do need money to pay the bills and paying the bills can be very satisfying! Here are 4 tips on how to create and maintain a household budget to get you on your way to financial freedom. They may not be easy, but they are simple. When you come right down to it, a budget is a way to control your expenses. Since you have little control over the amount of money that comes in, you have to control the money that goes out.

There's nothing to compare with the feeling of being in charge of your money. If you make $30,000 a year and stay on top of home budgeting, you are likely to end up better off than someone who makes $75,000 a year who does not take the time to manage their budget.

Step 1 List all your current income streams. Remember any money you may get from consulting work or a second job. Also add or subtract any alimony or child support you may receive or have to pay.

Step 2: Make a list of all of your regular monthly expenses Track your expenditures for a few months. Record every cent that you spend. Use cheques, receipts and credit card bills. It's important to know where your money goes before you set about building a realistic budget. You will need to include expenses that, while not regular monthly bills, can occur periodically and must be accounted for (i.e. vehicle registration, property taxes, Christmas etc.). And include your other expenses, those little luxuries we enjoy like dining out, hair styling, coffee at Starbucks, the spa or snacks from the machine at work.

Step 3: Compare your income to your expenses. When you compare your income to what you currently are spending, you may see a noticeable lack of balance. The hardest part for most people is controlling their spending. If you cannot control your spending then no matter how much money you make it will never be enough. Your wants will always be able to expand to whatever income you have. Thus, controlling spending is a must for everyone. It is being able to say no to purchases you normally make on a whim. These impulse purchases are the primary reasons people don't follow their budget.

Step 4: Stay on budget and avoid new debt Avoid extra stress by staying on budget. Financial problems bring stress, and avoiding that stress may make it easier to give up things you can live without. Your situation is not permanent and this, too, shall pass. It is always tempting to use a credit card and postpone the expense. You should only do this if you know you can pay the balance when you get the bill. Most times it is something that can wait for you to save for. Overusing your credit card will only create new debt and make your future financial picture bleak. Don't be an emotional spender.

And for even more budget information, I invite you to claim your Free 4 Day Email Mini-Course at: http://www.LifeContinuesAfterDivorce.com

Because we all deserve to be financially free.

From Carol Ferguson - Your Friendly Budget Gal and LifeContinuesAfterDivorce.com