In the United States, it's estimated that one out of every three households utilizes a budget in order to stay financially stable. If this is something you'd like to do in order to better understand your finances and where your money goes, the tips below will be useful. Although it can seem cumbersome to take on household budgeting, it certainly is not impossible. By breaking it down and taking it one step at a time, you'll quickly be on your way to effective and efficient budgeting.

1. Write Down Where Your Money Will Go

In order to make sure you're not spending frivolously, you'll need to identify where each of your dollars will go throughout the month. Ultimately, you want to plan out all of your money so nothing is leftover. This doesn't mean that you'll have nothing; it just means that your money will be 100% accounted for. Categories for where the money will go will vary for each person and their individual budget, although some of the most common include:

- Housing (rent or mortgage)
- Gas
- Insurance
- Food
- Debt
- Healthcare
- Utilities
- Emergency Fund
- Transportation (car payment)
- Savings
- Dining Out
- Clothing
- Children Expenses (diapers, formula, school supplies, daycare)

Start with the amount of money you bring in each month and then divide it up into each of these categories. In general, you'll want to start with the most important expenses first. From there, you can moveto budgeting for clothing, entertainment, or even a vacation.

2. Don't Ignore Your Debt

Paying off your debt is something you should make a priority, especially if you're paying high-interest rates. With the average U.S. household taking on $16,000 in credit card debt, $30,000 in car loans, and $50,000 to $100,000 in student loans, it's easy to see how debt can take over. To tackle this, you'll want to take on the debts with the highest interest rates first. Push as much money into these as you can until they are paid off. A good rule of thumb is to avoid unnecessary expenses, such as movies or even dining out, until you have paid off a good amount of debt.

Every month, write down your debts so they are never tucked away hidden behind small monthly payments. When these are pushed in your face more often, you'll begin to pay more attention to how much money you're really paying in fees and interest. The more money you put into debt, the less debt you'll have at the end of the month.

3. Grocery Shop Wisely

Groceries can cut into your budget, especially if you're buying for an entire family. There are ways to save, although they will take time and some thought. The first way is by shopping on designated days every other week. By minimizing your visits to the store, you're likely to spend less and prioritize what you need when you do go. In addition to this, check ads for savings and don't be afraid to cut coupons. You can save hundreds by paying attention to sale prices and combining those with coupons in the newspaper.

4. Adjust Budget Each Month

Household finances can change each month, which is why you'll want to create a new budget for the month ahead. Account for changes with income as well as any needs that may arise, such as birthdays, anniversaries, or holidays. If you don't anticipate these things happening, they could end up surprising you and ultimately taking money away from other areas.

5. Write Down Your Goals

Writing down your financial goals will help you stay on track while increasing your chances of meeting them. Whether your goal is to pay off a credit card in one year or your student loans in three years, it's important to constantly remind yourself of them. You can do this by writing them down when you're doing your household budgeting or putting them on a note that stays in your wallet. Both you and your partner (if you live with someone) should be on board with this. By being open and discussing what you want for your financial future, you might surprise yourself with how quickly you can tackle each goal.

6. Don't Let Repairs Surprise You

Homeowners should always save for repairs, even if their home is in relatively good shape. It's estimated that you should save around 1% of the cost of the property each year for repairs. Even if you have very few updates that need to be done one year, that doesn't mean you won't have any the next. By continuously saving month after month, you'll end up with a good amount of money that can go toward surprising expenses, such as a new roof or new a/c.

7. Use Cash if Credit Cards are Too Tempting

If you can't responsibly use credit cards (which is the case for many people), then use cash. Otherwise known as the "envelope system", this is where you'll pull cash out of your bank account and divide that out into envelopes that are designated for different categories. By holding the cash in separate envelopes, you'll be able to see exactly how much money you have left so you're not tempted to overspend on something you really want.

8. Don't Buy Everything New

Brand new furniture, decor, and other household items can be quite expensive. To help you stay on budget without having to give up things you might need, try buying second-hand. Whether this means going to second-hand stores or shopping "open box" items online, you might be surprised by what you find. Many online communities can also connect you with your neighbors who are selling or giving away things for free. 

9. Compare Prices for Monthly Expenses

You can save hundreds of dollars every year by regularly comparing prices for the things you pay for every month. Car insurance, television, phone service, alarm service, and even gardening can all have prices that can change frequently. Use online comparison tools or simply call the companies that you currently subscribe to and ask about discounts. If you have no luck with asking directly, then consider looking at alternatives. For example, you can use low-cost television subscriptions in order to avoid a hefty satellite television monthly payment.

10. Say Goodbye to Credit Cards

As you pay off your credit cards, you'll want to cut them up so you're no longer tempted to use them. If you still want to keep a credit card just to help improve your credit score, use this regularly but pay off the balance in full monthly. However, if this is something you find you just cannot do, you'll want to get rid of all cards completely.

11. Cut Your Budget When Necessary

If you have an unexpected cost arise or you really want to pay off your debt quickly, then adjust your budget accordingly. Don't be afraid to cut down on your budget to make it as tight as possible. While this may mean getting rid of cable or choosing a cheaper cell phone plan, this will be worth it in the end. These are only temporary changes but they can help make a big difference in the amount of money you spend and save.

Creating a Successful Budget

Household finance is a subject that too few people discuss. However, it's crucial for those who want to save money and experience financial freedom in the future. While you may have a difficult time with this initially, don't give up. Within a few months, you'll be on your way to budgeting like a pro and saving money that can go towards paying off your home and other debts.