Creating a Family Budget – month by month or average for year?

Question by QueAndAy : Creating a Family Budget – month by month or average for year?

Family BudgetWhen creating a family budget, for the budgeted expenses, do you prefer to take the average of the expense for the year and use the same amount for each month, or do you try to accurately put in the expected amount by month. I see advantages / disadvantages is both approaches. thx.

Best answer:

Answer by IKE R. FLORES
Your family budget is a projection of how much you expect to spend in a given time, say, a month. What will guide you better as to how much you will be spending each month? Averaging or approximation? What will provide you the closest figure to the real spendable amount will be the best option to take so your variance – actual versus budget – will not be that big. Otherwise, if your budget is way too low or way too high compared to the actual monthly spending, then what is that budget for anyway? You want to be able to allocate the right amount each month for spending so you will know how much you can safely set aside for savings, right? So choose the approach which will provide the one closest to reality.

How to Creating a Family Budget
Try perusing for more insights on personal finance matters.

Add your own answer in the comments!

Speak Your Mind