The Process of Budgeting

In today’s fast-paced world, we are often forced to balance between our career, our family life and our leisure time. With the chaos of the modern world, families must make sure that they are equipped to deal with financial challenges and ensure financial stability.

Many families work hard to earn a decent wage yet are forever chasing their tails. It doesn’t have to be that way! If we have learned to control other areas of our lives using various methods, there is no reason we shouldn’t be able to implement a family budget using appropriate tools to achieve financial stability.

To help you out, I have developed a simple 3-step process:

Step 1: Expenses vs. Income                                                       

At the initial meeting and in order to get to know my clients on a more personal level, I ask them to fill out a questionnaire that will help me understand their lifestyle and personal preferences. This is filled out by both spouses together, as joint family heads. We then go over bank and credit card statements from the previous three months.

Step 2: Creating a Budget

After analyzing the statements, we determine which is higher – expenses or income, and why. Keeping in mind the golden rule, “Income must be higher than expenses”, we create a realistic family budget, based on various variables such as fluctuating income and a prioritization of expenses.

Step 3: Budget Follow-Up

This step is the most important.  Once you get this right, you are on your way towards financial stability. Once a week, both spouses sit together for a short meeting and go over expenses, while at the same time also reviewing the amount of funds remaining until month’s end. At the end of every month, the couple must go over last month’s expenses vs. income and plan the month ahead.  That way, you will gradually gain control of your finances, instead of having your finances control you.

Click on the links below to download my Budget Form and also a sheet of Tips to help you fill out the form.

Suzy’s Budget Form

Tips on Filling out the Budget Form

I would be happy to speak to you once you have completed this exercise if you would like further assistance.

Call me on 054-421-7207