By Alan Julian
At one time or another, many of us have probably tried to develop a household budget to get some control over our personal finances.
My wife and I tried and failed at it at least three times. But once we did finally figure out how to develop and maintain an "honest" household budget, it made our lives a whole lot simpler.
It eliminated most of the disagreements we had about how to spend our money. It also allowed us to begin some serious saving for retirement.
I put quotations marks around the word "honest" on purpose. In our prior attempts at developing a budget, we found the biggest reason for failure was not being absolutely honest about our expenses.
It simply doesn't do any good to develop a budget if it's just fantasy.
I certainly don't consider myself any kind of expert on the topic. But I do know what has worked at my house. Here are a few simple steps to help get you started.
Begin by looking at how much money you currently spend each month. Keep a list of your total spending for groceries, gasoline, utility bills, telephone, rent or mortgage payment, car payment, clothing, dining out and entertainment. If you pay your bills with checks, your check register contains all the information you need.
Next: Biannual expenses >
