How To Create A Budget For Your Family – Free Budget Spreadsheet!

Creating a budget for your family can help you stay within your income and reduce debt. Lower your stress about money by adding all of your bills and expenses in a free spreadsheet that tracks and adds everything for you after you enter your monthly expenses and bills.

 

With a new addition to the family, finding ways to save money became an even bigger priority, especially with a single income (for now). We have tried and failed to hold to a budget many many times. So as we began to really buckle down on spending, a sense of worry at sticking with a plan was inevitable.

Did you know that money is considered one of the top stressors for most people in their lives? I know it is for me! That’s why I decided to share my budgeting journey with you and provide a way for people who are less savvy with spreadsheets (and who can’t afford pricey tracking software) an opportunity to build a budget today. When I get to the end of the month and can clearly look at where our money has gone, it is so liberating and freeing to know exactly what we need to change next month.

While not everyone has the time or energy to get as detailed as I want to be, I really need to dig deep into the details because we tend to do tons of tiny transactions that add up soooooo fast!  And while my husband makes a good income, the Seattle area is amazingly expensive (meaning he could essentially be making half as much in many other areas to have the same lifestyle), and we just purchased our first house (though outside of Seattle – this house would have been at least twice the price in the city).

My husband took a very active role in finding a method that may actually work this time around in the hopes of finally making positive changes in the way we both spend money. You’ll see our process and know what I mean.  Of course he helped previously! But, it was going to take a lot of collaboration and work on both our parts to make it finally work long term.

To help my fellow parents, I have created a basic budget spreadsheet you can use in your own home. If you sign up for the Hive Newsletter, you can have access to the Hive Library of free resources, including a spreadsheet to track your monthly expenses and bills! Don’t worry about software – the spreadsheet is in Google Docs (Sheets) so all you need is a Google login.

The Goals Of Budgeting

The best thing about budgeting is the ability to see exactly where your money is going and how to make changes in your monthly expenses to actually put some money away for surprise expenses (like medical or car bills). Or, budgeting can show you how to slim down on some bills makes it possible to save up for something you want or need (like a house or…a new board game) or pay off debt faster. It also provides a way to respect the time and energy that goes into making money and using that money in a meaningful way.

What We Tried

In the past, we had tried the “wallet” method (where you have buckets of money by category) and we tracked every transaction in an app linked to both our phones. It was great for a month or two but became arduous to enter them every time money was spent, like a $2 charge for parking.  And, if a transaction was missed, there was no real way to know. Tracking transactions stuttered and stopped.

We also tried using Quicken software that linked to an app and synced with our bank account to see real transactions we would categorize once cleared. But, the sync never worked really well and we found the budgeting feature was very clunky and not user friendly.

In addition, there were many Excel spreadsheets that we tried and failed to use on a regular basis. This was partially from losing focus and partially from lack of determination to find a structure that worked. So, what would work now?

Before we decided on something that would work, we needed to find out WHAT we needed to track.

What To Track

Not only did we want to track our monthly bills (especially those that vary in amount due, like power or water) but also define which bills were absolutely necessary vs unnecessary. By doing this, we could cut back on bills that we really didn’t need (like a subscription) or lower the payment on others (like a cell phone bill). Here are some main areas to track:

Necessary Bills

Bills that you HAVE TO pay each month that are non-negotiable. This doesn’t mean you are locked into a specific payment amount – you can negotiate a lower payment on your loans or reduce your home water use. But one way or another you are required to have these services. For example:

  • Rent or Mortgage
  • Power
  • Water
  • Garbage/Recycling
  • Car Payment
  • Car Insurance
  • Phone Service (cell and/or home)
  • Credit Card(s)
  • Loans (student loan or other non-mortgage loan)
  • Medications (if applicable)

Unnecessary Bills

Bills you need to pay but are for services that you can possibly cancel. For example:

  • Subscriptions (video streaming (e.g. Netflix), magazine, food services, etc)
  • Cable (includes internet, though this feels more like a necessary bill this day and age)

Expenses

This is the part that’s a little harder to track since they aren’t just a bill you get in the mail. These are any items you may buy or purchase on a monthly basis. For example (though the items below is a small snapshot into what we track):

  • Groceries
  • Gasoline
  • Pet Supplies
  • Eating Out
  • Car Maintenance (like an oil change)
  • Eating Out
  • Shopping (like cloths, household items (e.g. a new shower head), and anything else you purchase that doesn’t fit into another category)
  • Yard Maintenance (if applicable)
  • Medical Expenses (like an annual visit)
  • Gifts and Holidays (birthdays, weddings, baby showers, and any other event)

What About Other Tracking?

While there are a lot of things like debt payoff amounts, investments and other types of tracking, I’m focusing on the month to month expenses only. In order to build a debt payoff plan or make additional investments (etc), you need to first tackle the little details and create a plan of action.

How We Track It All

Firstly, this is a LOT to track. But, we came up with a system that worked! Now that we had defined all our bills and expenses, here is what we did to set up our tracking spreadsheet:

  1. List all necessary bills with the expected amount due
  2. List all unnecessary bills with expected amount due
  3. List all expected expenses with an estimated amount spent on each in a month (you can either ballpark these numbers and alter after seeing your monthly totals later or go through your expenses from previous months)
  4. Create a monthly spreadsheet to track all charges in bank accounts and credit cards
  5. Take the monthly charges and track which category each charge belongs to (like a $50 grocery charge)
  6. Build a summary calculating category totals vs the estimated/budgeted amounts

Does this all seem overwhelming? Don’t worry – I’ve shared all this work with you! Just subscribe to the Hive Newsletter and get access to a budgeting spreadsheet (as well as any other freebies available) in the Hive Library. All you need to do is follow the instructions and input your numbers! So take a look and see if my budgeting system works for you and your family.

Save Your Receipts

If you make a purchase either in a store or online, save the receipt! Every weekend my husband and I sit down and enter all of our expenses into the spreadsheet (we export from our bank account and credit card and paste any transactions that cleared in the previous week). Then we take our receipts to help us categorize the expenses. One of the biggest hurdles for my husband and I was sitting down once a month to go through all our expenses – don’t wait until the end of the month! Not only is it easy to lose a receipt and/or forget what you purchased, but going through about 30 days worth of spending takes FOREVER! I highly suggest doing your budget entry weekly!

How To Use The Budget

Look at your numbers from each month:

  • Is there a service you don’t need? Cancel it and use that money (even if it’s just $10!) to pay off more debt, add it to savings each month or save up for something you want or need!
  • Can you reduce the expected amount due on bills by lowering your monthly payment on loans, changing your cell phone service, refinancing your car or remembering to take shorter showers? Just get creative!
  • Are you greatly overspending based on your estimates? Either update your expected expenses/budget or find ways to reduce the amount you spend.
  • Are you right on budget each month without trying to reduce your spending on expenses? Pat yourself on the back! Or you can try to find ways to reduce your spending to save more money.

I also have some resources I use to save money listed on my Resources page. Do you have other tools and services you use to save money? Share them in the comments below for others to try!

What To Do Next

Budgeting can be complicated and time consuming, but the benefits of knowing where your money goes and how to change your spending to create long term growth and stability for your family alleviates so much stress!

Happy saving!

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31 Comments

  • Reply Liz January 25, 2019 at 6:14 am

    Creating a budget is hard, I think half of it is finding a system that works for you. We’ve done the tracking all expenses before and it was arduous for those little expenses. And we tried the cash system too, but paying for gas in cash and hauling babies out of the car to pay wasn’t practical. Right now we have all of our fixed expenses taken care of, it’s the unfixed expenses we still struggle with.

  • Reply Jenny silva January 24, 2019 at 10:02 pm

    Great reminder to pay attention to the small purchases. Making me rethink my spending.

  • Reply Anh January 24, 2019 at 6:50 pm

    Thank you for this post! Our family is pretty good at budgeting, but it never hurts to read new ideas!

  • Reply Tonya January 24, 2019 at 11:11 am

    Very informative read. We have tried a lot of the ones that you tried in the past. Glad you have something that works for your family.

  • Reply Natasha @MrsChettyLife January 24, 2019 at 11:02 am

    Helpful list. I am a bad spender and will out these into consideration. I’m good at budgeting but I don’t follow the budget and I don’t count the unnecessary costs.

  • Reply Stacey November 13, 2018 at 11:45 am

    I’ll have to try this! I’ve tried tracking my spending so many times before and it just gets overwhelming. If I’m busy and forget to write something down, it’s gone and I never can account for that expense.

  • Reply Susan November 8, 2018 at 5:35 pm

    I’ve always been pretty well with budgeting. I always knew what was coming out of my account. I always had SOME spreadsheet for my bills. However, I never even thought about the receipt. Because there are always those “inexpensive” things that we don’t pay attention too and how quickly they can add up. I think that is something I’m going to try to see if I can cut back on anything that I didn’t realize that I’m probably spending too much money on.

    • Reply KrisBeeMama November 9, 2018 at 2:40 pm

      Yes, the little things are the items that get me every time!

  • Reply Supermompicks November 8, 2018 at 2:24 pm

    We use these buckets in our budget but also include “savings” expenses like 529 and retirement. It works for us and makes it automatic.

  • Reply Racheal November 8, 2018 at 2:02 pm

    Money seriously stresses me out!. I needed a budgeting plan like this.
    Thanks for the tips. Very helpful!.

  • Reply Stefanie November 8, 2018 at 12:17 pm

    This is great advice! I’ve alwahs been terrible about keeping track of my money! I’m very thrifty but there is a lot of freedom in knowing exactly how much you have and how much you can spend!

    • Reply KrisBeeMama November 8, 2018 at 1:28 pm

      It’s the only way my family is actually paying off debt!

  • Reply Sara June 15, 2018 at 3:31 am

    Saving the receipts is new for me. I haven’t done that and never knew it can be so important

  • Reply Carla June 14, 2018 at 2:21 pm

    Budgeting is so necessary, but please tell me I’m not the only one that gets super stressed about it 😬

    • Reply KrisBeeMama June 14, 2018 at 2:35 pm

      Oh I just hunk most everyone gets stressed about it! That’s why I made the free budget template to help those who are less spreadsheet savvy. It’s all set up for you!

  • Reply Aradhana June 14, 2018 at 12:54 am

    We don’t make budgets as such. But I should start considering it .

    • Reply KrisBeeMama June 14, 2018 at 1:50 am

      It’s pretty simple to make a budget. The free budget template could really help!

  • Reply Jessie June 12, 2018 at 5:00 am

    I needed this. I’m usually very good at budgeting but bills keep changing, or things become broken like our cars and somehow I always fall out of don’t my budget. Thank you for this.

  • Reply Shamanth June 12, 2018 at 1:49 am

    Hey thank you, I am making budget plans but not able to meet it , hopefully after reading this post i will meet it, there are lots of necessary advices

    • Reply KrisBeeMama June 12, 2018 at 2:47 am

      Sounds like good timing, lol. Happy budgeting!

  • Reply Joanne June 11, 2018 at 1:48 pm

    Great article, I am on unpaid maternity leave at the minute so having to be very careful with money so will definitely be making use of your advice.

  • Reply Jody June 9, 2018 at 9:35 pm

    Brilliant resources. I am quite good at budgeting but always looking at ways to improve!

    • Reply KrisBeeMama June 9, 2018 at 10:28 pm

      That’s great that you feel confident in your budgeting!

  • Reply Lisa @ https://meandmymomfriends.com June 9, 2018 at 12:39 pm

    This is a really great guide! Budgeting can be hard and overwhelming. This really simplifies it!

    • Reply KrisBeeMama June 9, 2018 at 3:41 pm

      Thanks! I hope the free template helps people get started.

  • Reply Lifewithzg June 9, 2018 at 12:41 pm

    Since I am a solo mom, I really make time to budget. I always need to keep track of everything. It makes my life easy and I don’t forget anything.

    • Reply KrisBeeMama June 9, 2018 at 3:40 pm

      That’s great! What do you use to keep track of everything?

  • Reply Paula June 9, 2018 at 12:14 pm

    Money is definitely a leading cause of stress in adults and relationships. Sustaining a family is hard and it’s not easy seeing all your hard earned money going toward old bills each week. We have a spreadsheet with all our monthly bills: necessary, unecessary, utilities, cars, and mortgage & loans. It helps me keep track of due dates. We keep our extra shopping to a minimum but try to live comfortably so we can enjoy as well. It’s a crazy balance and either way, it’s stressful.

    • Reply KrisBeeMama June 9, 2018 at 3:42 pm

      I am right there with you. I think no matter what, money will always be a stressor. But, it definitely alleviates a LOT of stress and guesswork if you have a budget!

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