How do you plan on getting through the next year? Are you worried you’ll need to tighten your belt, or get a personal loan? When you start monitoring your household finances more closely, you’ll find that along with spending less, you worry less. Here are five tips to help you get started on the path to better household finance management.

1. Emergencies will happen. You know what they say about the best laid plans – they often go awry. From appliance breakdowns to medical emergencies, something beyond your budget will inevitably happen. Have a plan for the unplanned. Start an emergency fund today, and in the meantime, use a Personal Loan EMI Calculator to see how feasible it would be for you to pay off that emergency expense in installments.

2. You will need your family’s support. Any budget you will create has no chance of succeeding unless the entire household is aware and on board. Call a family meeting and share your proposal for a monthly budget. Hear everyone out if they have suggestions. Children especially need you to lead by example when it comes to personal finance, so get them involved.

3. Eliminating debt should always be a priority. Housing, utilities, food, and transportation are definitely necessities. However, when budgeting, be sure to include a plan to get your household debt-free. This is essential because the entire point of budgeting is to create long-term security for your family. It cannot be done if old debt sits around while you save elsewhere.

If you need to consolidate or transfer debts to be paid down, make that part of your initial budgeting preparations.

4. Create a schedule. One key component of your new budget is a calendar. On this calendar, list due dates and plan out when you want to make those payments. If possible, schedule automatic payments, but still keep the calendar around. This is the best way to avoid surprises and overdrafts. It also helps you better manage the money you are free to spend on a weekly basis.

For instance, you’ll always remember that the week your mortgage or rent is due, it’s best to avoiding eating out completely and carpooling to save on gas – just to keep your current balance up.

5. Everyone should be responsible and accountable. Mistakes will happen. Our impulse to spend will get the best of us. While it isn’t the end of the world by any means, we should not brush these off completely. Make sure there is transparency involving everyone’s spending habits. When someone goes out of budget, help them think of ways to make it up.

If a larger purchase needs to be made, everyone should be brought in on the decision. Buying out of bounds affects everyone, so remind everyone that the budget isn’t a punishment; it’s meant to serve the greater good.

After a period of time, living within a good budget is just second nature. When everyone under your roof sees the benefits of fiscal frugality, there will be less tension, more trust, and in the long term, more abundance.