Mom is assigned as budget keeper and keeps $355. Out of this money she is responsible for buying groceries, health items, cleaning supplies, families clothing, school lunches, pay paper boy and other expenses around house. Mom takes $50 out of this money for herself that she doesn't have to account to anyone else in family for.

Mom gives dad $100 of which he is responsible for paying for his expenses to get back and forth to work including car gas. Dad can use $50 of his money that he doesn't have to account to anyone else in family for.

Mom gives each of three kids an allowance of $15. This money can be used any way they choose.

By sorting your money this way, each member in family can keep money in their wallet and all of responsibilities are covered. No, you won't know exactly how much you spend each month on groceries, car gas, etc. The main point of a simple budget is to make sure you have money to pay everything without hassles like sorting your money into envelopes and accounting for every penny.

Mom, as budget keeper, would also be responsible for keeping budget, paying bills and depositing money in their savings. This does seem like a lot of responsibility for just one person in family but, to ensure that their finances are organized and everything is covered, it is absolutely necessary. It is also important to make sure dad knows how mom is handling things so that he can step in if need arises.

While developing your budget using Budget Worksheet you will know what your household expenses are. Simply take that list and assign it to a member of family along with money to cover it. If you run into problems and somethings aren't being paid, you will probably have to review your budget and reassign these responsibilities.

I just recently received an email from a lady stating that her and her husband wanted to buy a new car but really didn't know if they could afford it. This family probably saved themself a lot of headaches just by asking that question. I wrote back showing her how they could determine if they could afford car or not.

My answer to her question was to have her develop a budget, listing all of other bills and expenses they have, and then see what's left over. I also reminded her that she should consider extra costs like insurance, maintenance, etc.

Over years I have seen people with as little as $500 a month income manage their finances very well while someone else with $5000 income can't make it last entire month. It all boils down to planning. If you plan your bills and purchases each month with goal of not exceeding your income, you can make it on almost any income.