Making Your Family Budget Airtight

First let us tackle the subject of how to make the family budget 'airtight' and all expenses are accounted for.  The first step is to Identify your family's needs from your family's wants. 

Tackle Your Needs List First

When it comes to the family budget, it's important to list down your needs and beside it, place the corresponding monthly amount you allot for it. I have listed a sample of basic needs an average family may have. 

1. Basic food,
2. Shelter (rent/amortization)
3. Basic clothing,
4. Education (tuition, kid's school allowances)
5. Utilities (water, electricity, transportation, communication)
6. Toiletries, Laundry & Cleaning Supplies
7. Household helper's salaries

1. House and Car Maintenance supplies
2. Insurances (health, life and non-life)    
3. Medicines, Vitamins, Doctor/Dentist fees
4. Taxes (income, property)
5. Transportation (gas, parking, toll fees, LRT/MRT, taxi, etc.)

The First Things on Your Wants List

After doing that, review the list and see if there are any items you can do without and place them on the 'want' list.  These are lifestyle choices that you are choosing to pay for such as the following:

1. Cable TV
2. Internet Connection (other parents would claim this as a need, though)
3. Newspapers/Magazines
4. Sports club membership dues
5. Tutorials, continuing education such as self improvement workshops
6. Driver
7. Upgraded cell phone (or paying for two lines)

Click here to read more about the other things on your wants list and putting together all your wants.