Developing a basic budget can help ensure that we have some money for our creative family beach vacations. Here's how...

Here's the first thing to remember...a basic budget is not a bad thing, it is a good thing. A basic budget means that you will have more money to spend on your creative family beach vacations. Rather than meaning you can't buy all the clothes or toys you want, whenever you want, it means that you will have money set aside if an emergency should arise. It's important that we put this whole "budget thing" into perspective.

5 Basic Steps
Having said this, there are 5 basic steps to setting up a budget...that's it. Follow these 5 steps to enjoy the financial freedom that you deserve:

#1 - List Your Income
First, list all your sources of income, and how much money this means every month. This will not only include your salary from your primary job, but also money from any part-time job(s) you might have. It will also include any money you recieve from friends or family as gifts or payments from a loan you gave to your old college pal. In other words, include all the money you will receive each month.

#2 - List Your Expenses
Second, figure out how much money you owe each month. The easiest way to do this is to get your credit card and bank statements for the past few month, along with your checkbook receipts, and any cash receipts you might have. This is a record of what you have spent recently, and is a good indication of what you will be spending money on in the future. Now you need to categorize all these expenses into two categories...fixed and variable.

a) Fixed expenses are those expenses that you will have each month, and are basically the same amount, like rent or a car payment. If you have something like life insurance that you pay each year, divide this by 12 to get the monthly amount.

b) Variable expenses are expenses that differ each month. Such expenses are utilities, groceries, clothing, entertainment, and your phone bill. These expenses are easier for you to control. Include an amount for "pocket money", so that you can buy a cup of coffee when you want.

Now, add up the total amount of expenses that you have for a month. Now comes the fun part...

#3 - Calculate Your Standing
Do some calculating and see where you stand. Subtract your total monthly expenses from you total monthly income. This will give you some idea of how you are managing your money now, and you can build your budget from this starting point. If you are spending more than you are taking in...you are in trouble. If you have a lot of money left over, you have a lot more options.

#4 - Establish a Basic Budget
From this starting point, and what we have learned so far, we will establish a basic budget. Basically, we are looking to set aside 10% of your money each month for savings...this is a great position to be in. If this seems too much at this stage, let's try 5%. The most important thing to remember at this stage is to get moving in the right direction. Once you start the train moving, it's a lot easier to keep it rolling.

The easiest way to do this is to examine your variable expenses and see how you can trim some costs. Can you buy fewer items of clothing this month? How about taking your lunch to work instead of eating out at restaurants? If you can save money on your fixed expenses by moving into a smaller apartment, so much the better. There are a lot of ways to save money if you look into it. You could also help the equation by getting a part-time job and bringing in more income. Cutting off some fat in your basic budget now will mean more money to spend on your creative family beach vacations in the future.

#5 - Stick To It...
Stick to the basic budget once you have established it. This is the most important part of the equation. Keep your eyes on the goal. Think long-term, and what the money you are investing now for the future will mean as opposed to that lunchtime trip to the restaurant in 20 years. Invest your savings wisely and watch them increase...this is a great way to focus on what you are getting as opposed to that dress or pair of pants which will be out of fashion soon anyway.

if you have any other great basic budget tips you would like to add, please drop us a note...we at creative family beach vacations would love to hear from you.

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