Year 2023 has been an unpredictable year to say the least. I am sure if you prepared a family budget it had to be revised many times throughout the year.

Let’s prepare for 2024 by building a budget based on your anticipated income and expenses for next year. Then on January 1, 2024 begin the year right by keeping track of what you are spending in each category. A runaway budget is not helpful to your family. Begin 2024 right and keep right throughout the year making adjustments in your budget aa you encounter income changes or expense changes.

Using Excel set up a worksheet that lists the names of your income sources and the amounts anticipated for 2024. Show a total for your income projection for the year.

Next list by category your anticipated expenses on the Excel worksheet going down the page. Suggestions for categories are: (1) House (2) Auto (3) Food for Family (4) Work related meals (5) School Lunches(6) Fuel for Cars (7) Car Repairs and Services (8) Clothing (9) Phone Service (10) Internet Service (11) Pet Costs (12) Utility Electric (13) Utility Water (14)Trash Service (15) Home Maintenance and Cleaning Supplies (16) Landscaping and Outdoor Maintenance (17) Car Insurance (18) Insurance On Home (19) Eating Out (20) Entertainment (20) Computer Supplies (21) Health Insurance (22) Medical Expenses (23) Savings and Investments (23) Credit Card Interest. I am sure you will have other categories as you prepare the list for your family. When the list is complete total the anticipated total expenses for 2024.

How does your Total Income compare to the Total Expenses? If they are less you can readjust categories you feel you might have slighted. If the Total Expenses are more, then look at each Expense category and see what you can reduce so that the income and expenses closely match.

Now set up a column next to the total anticipated income and expenses column that you can use for the total income and expense divided by 12 to establish your anticipated January monthly budget. At the end of that month post the actual income and expenses for that category in the third column. See how they compare and show the differences in the fourth column so you can see where you were over and under and if you need to adjust your budget.

I am sure you are saying “What about credit cards and the monthly payments on them?” The payments on credit cards are for items included in your expenses and the credit card statements can be used to post the expenses incurred on the credit card. If you do not pay your credit card off completely monthly and incur interest, then have a category for credit card interest. Some families will have a credit card imbalance where they incur expenses and just pay interest on the credit card and the credit card balance gets larger and larger and out of control. If that is your family try to get a credit card that has no interest as an introductory promotion for possibly a year and pay it down so you will not have interest in the future.