A practical family budget.

Posted on Posted in Personal Finance Advice

family budgetI received a couple of private messages regarding the family budget and how to cut expenses (read post here). Another reader also asked, ‘ What would happen to a household that suddenly had their income cut by 2/3rd due to the husband losing his job. This post is going to answer all questions asked and I have also included a sample family budget spreadsheet. 

In drawing up a family budget, I like to use percentages because it gives me an idea on how much I should be spending on each expense category. This method of budgeting also helps when one’s income changes. We only hope it changes for the better but even if one experiences a financial set back as the case of one my readers, just know it is not a permanent position rather a temporary set back.

If one should find themselves in a position that their family income was cut. I will advice that you re-work your family budget to match your current income status. You can download the sample budget sheet here (SAMPLE FAMILY BUDGET). People face  deeper financial crisis when they fail to recognize their current financial status and still try to live a false life. Yes, I believe in miracles but even the bible also advices us to get and apply wisdom.

Once, you have re-worked your budget, change your life style and chose cheaper alternatives. Example of some practical ways to cut down expenses are:

  1. Dump the product brand names . e.g, Milo – Richoco, Peak milk – Milksi milk, DSTV – GOTV.
  2. Change your life style – Do you run the gen all through the night? You can reduce it to 4/5 hrs a day.
  3. Save on your airtime and use the watsapp call feature. (See my post on it here).
  4. Switch off your data plan at night.
  5. Hand wash / use the washing machine for the pant/skirt of your suits, and give the dry cleaner only the jacket.
  6. Wash your car yourself and stop going to the car wash. (You get to exercise too). If need be,dump the car and hitch a ride with colleagues to save on fuel.
  7. Are you spending a lot on your hair? You can temporarily rock nice wigs. See my post here on how I revived a dead wig.
  8. Don’t be ashamed to start shopping in budget stores. Also be on the look out for discounts.

To my dear readers out there that sent me private messages on their financial situation, the list is endless, learn to get creative and cut out all unnecessary expenses.

You can read my previous post on how to be thrifty spender (here).  You can also read my posts on purchasing with a purpose (here)and be knowledgeable (here).

Do you have more practical tips to share? Pls do so in the comment section.

8 thoughts on “A practical family budget.

  1. This is really really insightful. Well done dear. Will like to post on the group My Home My Treasure. Please help with that. Thanks

  2. Like u said, the list is Endless! I can go on & on: 9. Embrace DIY (do it yourself). From doing your pedicure, fixing of nails, washing/conditioning your hair, plaiting kids’ hair, & all those minor stuff we dash to the salon for; then little fixtures around the house: calling electrician to change light-bulbs or set-up a new tv?? etc.. 10. Turn on the waterheater just shortly before your bath (e.g. while brushing) & fetch only from the hot-tap, the temperature is just bath perfect! No need to heat up water so long & end up diluting with cold again, not wise for Phcn billl. 11. U also save on power bills if u turn off your water-dispenser Hot switch. It takes less than 5 mins to heat up, so why don’t u turn it on only when u need to? 12. Change ALL your bulbs to energy-savers, it’s a lot cheaper in the long run 13. It’s actually more economical to fill your car gas-tank, as there’s less tendency for the fuel-station attendant to cheat u. 14. No need to renew your gym membership if u have a bench, a mat, 2 dumbbells, skipping-rope & a workout dvd at home, plus a decent neighborhood for a few runs/walks. 15. Recycle old clothes & accessories when u can, they tend to appear new again & even attract fresh compliments, etc etc… Akaglue hope u consider these helpful too?? Hehe!

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