Keeping costs and expenses under control
A good way not to find yourselves with no money before the end of the month is to keep expenses under control, ie prepare an agenda in the regular flow of income and expenses of the entire family. So it will be easier not to only realize which is the main monthly expense and possibly reduce it, but to plan, if your salary is really low or if in the end you do not know to manage your money. Here’s how to do so.
First thing to do to keep costs under control is to make a family budget. For those not very familiar with this financial tool, it is worth specifying that in it, you usually write down the overall earnings of each member of the family, to which then you subtract the expenses that each family member does, both on regular basis and any additional ones. You have to write down everything, from your regular income to any extra bonuses you may get, and also include the household expenses, mortgage payments, credit cards, etc.
But how to do this practically? It is nothing complicated, you just need to have a little patience and precision. As soon as you get your salary or wages, you must remove from the total money possessed all the fixed costs (bills, rent, mortgage payments, etc..). If you want to, among these fixed costs, you could also include a share of the family tha has been decided to be capitalized on a monthly basis or stored on the grounds of prevention or for the attainment of a definite purpose.
The amount of money remaining, however, is still not free from deductions. From this, you must eliminate all the variable expenses that invariably occur during a month (food shopping, refueling, etc.). Such costs may be added to the budget once their payment is done, but as a guideline, it is good to already have an idea prior to the time of making your first budget, meaning that you must plan ahead so that an amount of money goes to cover this kind of expenses. This forecast is then marked in the budget with greater accuracy.
The remaining portion is in theory free to use. However, it is advisable to always have an emergency fund in case of need, so this amount of money should be spent wisely, or else you will end up the way you were before getting your money, and that is broke.