Want to save money but confused about how to even start budgeting? Here’s your ultimate guide to budgeting for moms!
In a Nutshell:
A budget is the best way to see where your money is going. Moms are typically the primary spender for family needs which include things like groceries, school activities, and household products. When moms (and dads) are aware of the areas where money is heading out of their pockets, they can stay on top of spending habits, control finances, and have less overall stress.
I am not a certified financial expert, but I am a mom on a single income who has spent the last year learning to really buckle down on our budget. I’ve learned how to increase income with side hustles and how to decrease spending to make sure our finances all compute. I hope that I can share what I’ve learned so you don’t have to reinvent the wheel!
What is a Budget?
A budget is a way of tracking your income (how much money you make) and your expenditures (how much money you spend). A budget can be a useful tool to help see where your money is going. Typically, a household budget is tracked by month.
Why Budgeting is Important for Moms
As a mom, its easy to accidentally overspend. You’re likely the main purchaser of the family for clothes for the kids, groceries, activities, and anything else that pops up. If you don’t track where your money is going, it’s hard to know where to start when cutting costs. Budgeting can be an important tool for moms (and dads) to make sure finances are adding up and develop good spending habits.
What Are Moms Budgeting For?
Moms (and dads) budget for all the same things anyone else budgets for with some important additions. Moms are budgeting for groceries for the family, clothing for the kids, household items like shampoo and diapers, school activities, and medical bills for the family. These expenses can be a huge portion of the monthly spending so they are important to understand and control.
Tools for Budgeting
Budgets can be as simple or as complex as you want them to be. Here’s some ways to budget for you to consider.
Paper and Pencil
When my husband and I were first looking at the feasibility of dropping down to a single income, we made a paper and pencil budget. This made it easy to edit and erase as we tried plugging in different numbers. I would recommend a paper and pencil version if this is your first time budgeting. If you’re interested in creating a rough draft budget, I’ve created a template here that you can follow to make sure you don’t forget any expenditures!
Excel Spreadsheet
If you are familiar with Excel for spreadsheets, this could be a helpful tool for you! Excel makes it easy to plug in numbers and have it do calculations for you. Drawbacks of Excel is that it can take some time to set up in the way you like and it can be difficult to edit on your phone.
Budgeting Apps
There are tons of budgeting apps out there that can be super useful! Some link to your bank account to track your spending while others encourage you to manually enter your shopping trips. I’ve tried a few and have found that Dave Ramsey’s EveryDollar app is my favorite.
EveryDollar
I use the free version of EveryDollar but there is a premium version you can subscribe to as well. EveryDollar is a secure and user friendly app that walks you through how to set up a monthly budget. It clearly shows how much you spent and how much you have left to spend for the month. The best part? You can share the account with your spouse so they can see updated data on their own phone!
Budgeting for Moms 101:
The 5 step beginners guide to budgeting.
Step 1: Rough Draft Budget
Budgeting can be overwhelming to start if you’ve never tried before. I recommend starting with a rough draft budget to get an idea of how much money you’re actually dealing with in a month. I’ve made a free template with instructions to help you think about all the areas your money is going. Start by writing down your monthly income. Then, write down all fixed expenses (mortgage, internet, phone, etc.). With the money that is left, take a good guess at how much you will likely spend on more variable expenses like groceries, fun money, and gas.
Step 2: Track Expenses
Tracking expenses is when you write down every single time you spend any money over a month. Try to write down what category your spending was for so that at the end of the month you can see how much you’ve actually spent in each category. Both spouses need to track all expenses to get an accurate representation of spending. Note to yourself if there was anything odd about the month like a vacation or abnormal electric bill.
Step 3: Compare Expenses to Rough Draft Budget
Now that you have tracked all your expenses, total them up to see how close you go to the rough draft budget you developed in Step 1. Tracking expenses can be a difficult habit to develop so give yourself grace if you’ve missed some things. The goal of this step is to see if you’re under or overspending in areas that surprise you.
Step 4: Create a Goal Budget
Now that you know how much you spend, set up a goal for each category. Edit your rough draft budget to be closer to the way you actually spend your money. Try to set attainable goals. If you spent $350 in groceries last month, aim for $325 this month. Continue tracking your expenses to see how close you come to your goals.
Step 5: Maintenance
As you develop the habit of tracking expenses, you’ll become more aware of your spending habits and find ways to cut back. Each month compare your expenses to your goals and see how close you’re meeting them. Adjust for inflation or abnormal months. Life is always changing and so is your budget! Keep up on it to stay on top of your spending and control your money.
Ready to Save Money?
Check out these other posts about cutting costs and making a low income budget work!