Financial Budgeting to be a Stay at Home Mom
Family Budget Planning to Prepare for a Single-Income Family Budget
May 19, 2009
Many women don’t have the luxury of financial budging before becoming stay at home moms. But those contemplating leaving the workplace six months or a year down the road can make the most of their time by some wise family budget planning. They can try out a single-income family budget before leaving their jobs. A little preparation goes a long way toward paving a smooth transition.
Financial Budgeting for a Single Income
The first step in this type of family budget planning is for couples to sit down with a calculator, and all the financial information they can dig up from the bills and receipts of the last few months. They can decide on the list of non-negotiable budget items such as house payment, car payment, utilities, and any other monthly bills such as cable, phone, and Internet. Next, they will need to gauge an accurate estimate of what their family spends on other monthly needs such as food, gas, and clothing. They will want to be sure to set aside amounts for emergencies, yearly expenses, and savings in their calculations. Finally, they can estimate monthly spending on entertainment and luxuries.
Couples should worry about financial budgeting through spending cuts later. Now is the time for brutal honesty.
Trim the Family Budget
Once financial budgeting provides an accurate idea of current spending habits, it’s time to trim that family budget to fit into one income. Now’s the time when family budget planning can take a close look at monthly expenses that could be cut and ways to slash the entertainment and food categories.
Testing the Family Budget
If the parent who intends to stay home is still working, it’s a perfect time to put the new family budget to the test. Couples can use wise financial budgeting to pay off any credit card debt and create a savings fund with the second income . To be as disciplined as possible, couples may practice family budget planning by having the second income check electronically deposited into a savings account.
Some couples can make the transition to one income cold turkey, but most find it takes several months to work out the family budget planning kinks. Couples can keep their eyes on the goal and give themselves time to adjust to this new way of financial budgeting.
Financial Budgeting Means Saving Money
In the real world, a family budget never works out exactly as it does on paper. Ideally, family budget planning will involve creating a savings account with up to three months income stored away for unexpected car repairs, medical bills, or any other unforeseen circumstances life may bring.
Readers considering their family budget may want to check out some creative ideas to both cut spending and proactively save money. They may also want to look into the financial budgeting adjustments they should expect in the first months on a single income.
