Raising a family is challenging, but with a few tips for budgeting your money, you will be surprised at how far ahead you can get on your finances. Being frugal does not mean you are cheap. It means that you are smart with your money.

Monthly Income

The first thing you need to do is figure out your family’s monthly income. If it is not set, figure out what you can count on each month. Anything beyond that should be put into a high yield savings until you have enough to either invest or purchase an important item you are putting off due to lack of funds.

Expenses

After you do that, figure out what expenses are a needed in your life. For instance, you need electricity, water, and food, however, you don’t need to have your home a perfect temperature, nor do you need to go out to dinner three times a week. Define what is definitely needed and how much you spend each month on them. These will be your fixed expenses that are mandatory to survive.

Savings

Once you have calculated the expenses that you must pay every month, you can get a better picture of the best ways to save money. Some trivial expenses are cable, Internet and phone. Think about purchasing a subscription to Netflix and cutting out cable completely. You can also purchase an antenna that will likely catch most local channels in your area. This alone will save you up to $2000 per year.

Home Cooked Meals

You can also cook more often, and when you cook, make enough for two dinners and freeze one. This is not only cost effective, but comes in handy when you are in a pinch to get supper on the table after a late soccer game.

Old, Used Items

A great tip for the frugal family is to look around your house for items that you don’t use and don’t need. Go for the jewelry cabinet. One way to fluff up your savings is to sell some of your gold jewelry either on eBay or at a local dealer. You will want to ask up front how much you can get per ounce for that specific karat gold. You can shop around at pawnshops as well.

Think about saving money as a sport, because the more you can save each month, the bigger your nest egg becomes. The bigger your next egg becomes, the better quality of life you will have. Some of the most financial savvy investors in the world got to where they are because they are frugal and smart with money. They do not waste on useless expenses. A great and important part of budgeting for your family is that you are setting a good example for your kids early in their lives. Be smart with money and you will be financially sound.

This is a guest post from Kara Masterson. She is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max. Kara recommends checking out places like Rocky Mountain Coin Incfor more information on this topic.