Creating a family budget is easy, sticking to it, however, can be a completely different story.

While a well constructed budget can help you manage your finances and even help you get out of debt, it does require discipline and determination.

It is important, though that you keep your budget realistic, otherwise it will not work.

These household budget tips can help you manage your budget and make it work.

Determine your Monthly Income

Gather your paystubs and determine your monthly income. If you have only one source of income, it should be pretty easy. However, if you have a household where both the husband and wife work, or one person has two jobs, then you need to do a little additional work.

Include your job income, child support and any other income that your household has. List the sources in a chart and total it at the end. This is your total monthly income.

Determine your Monthly Expenses

Create a chart and list your monthly expenses. Use the handy Household Budget Worksheet to track your expenses for a few months.

These expenses can be credit card payments, rent or mortgage, utilities, car payment, food, fuel, children’s allowances and other expenses that you pay each month. List them in your worksheet, preferably next to your first chart listing your monthly income. This will give you a clear picture of what you spend each month. If you have pets, don’t forget to include your monthly pet care expenses such as food, litter and medical care.

Also include expenses that do not occur monthly such as quarterly taxes or insurance payments.

Determine your Disposable Income

What’s disposable income? Subtract your monthly expenses from your monthly income. This amount is what is referred to as your disposable income. If you are trying to pay off debt, you can use your disposable income to pay down your debt.

If you are in good shape financially, you can put that money toward savings for retirement in a Roth IRA or 401K, vacation or in ahigh-yield savings account just for a rainy day. You can also use the money to invest. Mutual funds are lower risk than stocks and some have a buy in as low as $1,000 to $2,500.

Create a Budget that Fits your Family

There is no use in creating a family budget that you have no way of sticking to so make sure that your budget fits your family. Take a look at your spending habits on your spending worksheet and create your budget around that as much as possible. Of course, you will likely need to make some modifications on your spending, but be realistic.

If you frequently go to the convenience store to get sodas, allocate some of your funds to that. Cut back a bit to make more room for saving, but total deprivation can cause you to lose your motivation.

Spend within your Means

This should go without saying, but many families make this mistake. It is important that you spend within your means. In other words, don’t spend more money than you make.

Do not use your credit cards as an extension of your income.

If you can’t afford it, you have three options:

1. pass on it,
2. get a second (or third) job or
3. sell something that you own to get it

but by all means do not incur more debt! When you’re about to lay out the plastic for a purchase, repeat this to yourself: “No New Debt!“

Sacrifice Some to Save Money

These household budget tips can help you get a handle on your finances and help you see where you are spending as well as where you can cut some expenses.

If you are using a family budget to help you get out of debt, you may find that you have to make some sacrifices, at least at first in order to make the necessary payments.

Overall, though, a good family budget can help you and your family manage your money, get a handle on your spending and maybe even save a little for the fun stuff.