Realistic Family Budgeting -

One reason that family budgets often fail is because they're just not realistic. It's

great to cut down on expenses, but sometimes we tend to go too far. For example, cutting

entertainment out of the budget completely might look good on paper, but is that

something you can realistically maintain? 

Instead of cutting such things out of the budget completely, consider finding ways to

lower the cost. Going back to the entertainment example, maybe you've been going to

dinner and a movie as a family twice a month. But eating in and renting a new release

would be much cheaper, and you would still get to spend quality time together.

Individual expenses can also be tricky. This can be resolved by allocating a certain

amount for each family member to spend each week. If someone spends his entire amount

before the week is up, re-evaluate his expenses and adjust if necessary.

Creating a family budget can help keep spending under control, leaving more money to pay

down debts and save for future goals. But in order to succeed, close monitoring is

essential. Your efforts will be rewarded, however, with less financial stress and more

money in the long run!

How does your family set a realistic budget?  I'd love to hear your thoughts!