# Effective Planning of a Family Budget
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Effective planning of personal and household finances helps you make informed financial decisions. That's why you should approach this process seriously.

Long-term planning is especially important. Most people mainly focus on immediate expenses. Sooner or later, this approach leads to a lack of funds and the need to take out a loan, for example, via a [**payday loans app**](https://play.google.com/store/apps/details?id=com.paydaydepot.app). So, let's look at the most effective methods of planning personal expenses.

## How to Organize the Accounting of Personal Finances?
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Here are some tips for effective budget management:

1. Record planned income and expenses for a week, month, or even a year in detail. In fact, you can use any period you wish. The idea is that planning should be comfortable for you, and the period should correlate with the receipt of funds and expense dates. For example, if you pay monthly bills or mortgage, try to predict expenditures and earnings for the same period.
1. Trace expenditures. Make notes on your phone, computer, or notebook. Collect paid bills and invoices, as keeping each payment in your head is impossible. Use accumulated information while planning (see hint 1).
1. If you don’t like writing everything down, make a table in Excel where calculations are performed automatically. You can use colors to mark different types of payments as visual data is perceived more easily. Think carefully about your needs so as not to miss anything.
1. There are numerous applications for budget planning. Try one and decide if it’s suitable for you.

## Some Ways to Manage Your Family Budget and Save Money
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If you want to make some savings and, at the same time, stick to the budget, you can follow some strategies:

1. Set aside at least 10% of your total [**monthly income**](https://www.omnicalculator.com/finance/monthly-income). Having a goal for savings will help in this process. Choose an objective that makes you feel happy, such as a vacation or a car purchase.
1. Use envelopes to distribute your family budget. Their number and purposes can be different, for example:

* food
* expenses for children
* monthly payments
* charity
* savings
* entertainment

Remember that your “Savings” envelope should remain untouched.

3. Create a menu for several days. It is a great tactic for any household, which allows you to determine the accurate quantity and variety of products to buy.

4. Plan every trip to the store. Spontaneous purchases happen when you accidentally run in to buy something like toothpaste and suddenly realize that you leave the store with two bags of unnecessary groceries. So, make lists.

5. Set aside money for unforeseen situations in life. After all, there is always a risk of losing a permanent income. Saved money can help you eliminate negative consequences. Note that the amount should be as big as at least three monthly wages.

The ability to successfully manage private income and expenses is one of the vital skills. Unfortunately, not all of us can plan effectively. Use modern tools like budget planning apps and Excel or opt for the method of envelopes. It doesn’t matter which one you choose — just start and see the results.