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The first step in developing and sticking to a family budget, is realizing that you need to do it. Take a good look at your total income and your total debt. Pay close attention to the amount of money hemorrhaging from interest payments and bank charges for insufficient funds. That may be enough to provide you with the stimulus to start and keep to a budget.

My husband was a wonderfully extravagant spender. It was difficult for me to communicate how much we needed a budget. When I finally wrote down how much money was going out on interest and bank charges, related it to him in terms of his hourly labor, he became a champion to end such waste. We began developing our budget, with the initial goal of economizing to reduce debt.

Once you have established your need and desire for a budget, the next step is to take note of all your essential bills. List your rent or mortgage, heating, gas, or electric, water, garbage, and all your communication charges. Group these essential charges in according to monthly, quarterly or yearly charges. For example, your electric bill may be monthly, but your heating oil or fuel may be ordered and delivered on a bi-yearly basis. You may pay your taxes on a yearly basis.

By looking at larger lump sums which are due at certain times of the year, you can budget and save that amount on a monthly basis. Many companies grant a discount for paying total due. You not only save money from billing cycles but you also gain a little interest in your saving account.

Take advantage of the financial incentives to cut back on utility waste. Night lights only use 4 watts of electricity and are quite sufficient to provide enough lighting for trips to the toilet. An inexpensive way to avoid flushing savings down the toilet is to place a large rock in the toilet tank. This may be a more prudent move than to rush out and purchase a new low-flow toilet on credit with adjoined interest.

A consistent move toward lowering your essential monthly bills will add to your savings. With these savings you and your family can choose to pay cash on something fun. And, again, you saved even more on not putting it on revolving credit cards.

If your income is still less than your output you have to cut make more cuts. This can be truly difficult but remind yourself and your family that it's temporary. Grocery bills can always use a bit of budget management. Examine what you actually get from your expenditures at the store, and reduce some of the unnecessary items.

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