Spring Clean Your Household Budgeting

Good financial practice means that household budgeting should be something you already have under control. You should know exactly where your household money comes from, where it goes, and that all of your financial priorities and goals are being met. The question is however, when did you create the budget that you're currently living within?

Although you might think that your finances are working at the best they can, if you haven't taken a look at your household budgeting for the past year, the chances are that your budget could use a spring clean. Interest rates go up and down. Income usually changes over the course of a year whether because of salary increases, or income tax changes. Supermarket prices certainly fluctuate making your housekeeping bills higher now than they were when you set your budget in place. So unless your budget was made in the last six months, it's probably time to dust it off and take another look at it.

Use the same format as you did for the original budget. Take a look at the figures that are current in respect of outstanding balances, interest rates, minimum payments, etc and make any necessary changes. Once you have your new total expenditure, check your income to see if this has changed. Your housekeeping money is probably higher now than it was originally so if you haven't any additional money coming in, you may need to look at where your housekeeping money is going and consider making cuts or changes to what you buy - paying closer attention to special offers and bulk buying can help you make additional savings if you need to stretch your income a little bit further.

Spring cleaning your household budgeting isn't just about ensuring that your finances are up-to-date however. If you are on a tight budget it's also a great way to motivate yourself into sticking within the financial boundaries you've set. Seeing the outstanding balances on your debts decrease is a surefire way of re-igniting your passion for your budget!

So don't let your budget stagnate. Make sure you schedule a time at least once a year for a financial spring clean just to make sure that your finances are working for you, and that your household budgeting plan is on track for a good financial future.

About Author:
Nicola Ray is the editor of Budgeting-Steps.com, a website that focuses on how to budget and stay out of debt. You can find 100's article and budgeting worksheets to help you keep your family budget on track.