Do you find it difficult to pay your bills? Are you afraid of creditors breathing down your neck?

Don’t you think you have enough money to pay your debts? We have the solution to your problem: make a monthly budget for your home and you will see the difference.

Many families have problems administering their money. Sometimes, their expenses are bigger than their income; they buy unnecessary goods or simply savings are not enough, so they cannot afford unforeseen events or expenses or take advantage of opportunities at certain times. But, without a doubt, making a budget is a solution to your problem. A family budget is a useful planning and controlling tool. It allows you to identify your sources of earnings, your main expenses and to make a comparison between them to see mistakes and take corrective actions in time.

If the solution to the problem is to prepare a family budget, you may wonder: "how can I prepare it?" Below you will find some basic steps to make a family budget and some examples and recommendations:

1. Make a list of your earnings.- Your net salary, that of your spouse, commissions, allowances, bonds, gifts or cash representing your family income.

2. Make a list of your fixed expenses.- The typical fixed expenses for a family are their home mortgage and a car loan. It is advisable that the mortgage payment is between 25% and 28% of your net monthly income, i.e., the money you receive as a salary after taxes and deductions. Total fixed expenses should not be higher than 30% of your net monthly income.

3. Identify your variable expenses.- it means the money you use to pay water, electricity, telephone, food, clothing, entertainment, etc.
* Rate your expenses as a need or luxury to identify those that are really necessary.

4. Determine the amount of money you have saved so far.- Savings are necessary, because a family can use them to solve any unforeseen event and/or take advantage of opportunities at the time they arise, as we already mentioned. You should save, at least, 10% of your salary every month.

5. Evaluate your financial situation.- Deduct your expenses and savings from your income so that you may realize whether there is some money left.

Prepare your budget and check it periodically to know whether it is necessary to make some changes. If you have a computer with the Microsoft Office program, Excel provides you with a variety of forms to prepare a budget according to your needs. You will only have to fill in some blanks with the required information listed above.

Do not feel overwhelmed any longer, administer your money efficiently. Make a budget, set financial goals, and be relieved because you will be able to meet your obligations and financial goals.