Making a Family Budget
Does your family have a budget? Statistics shows that families with a budget are better off financially then families that don’t have a budget. Family budgets are not very hard to establish and once put into existence, they are not that hard to maintain. Family budgets are the backbone of most successful families and the lack of one is the demise of not so successful families. Family budgets are equal opportunity beneficiaries. Having a family budget is and essential part of a healthy financial future. When budgeting, it pays to be mindful of needs versus wants. Needs are things that you must have in order to survive: foods, shelters, clothing, healthcare and transportation. For example, you need a home a roof over your head, a place to stay warm and dry. Your home therefore is a need. Wants, on the other hand are things that you would like to have, but you do not actually need in order to survive. Family budgets control the direction of financial futures. Take control of your own financial futures. If you don’t learn to manage your own money, other people will find ways to miss manage it for you. Some of these people may be based financial planners. Start an emergency fund. One of personal finances is “pay you first.” No matter how much you owe in student loans or credit card debt and no matter how low your salary may seem it’s wise to find some amount, any amount, of money in your budget to save in an emergency fund every month. Know where your money goes. At the end of the first month, and every month thereafter, reevaluate your actual expenses fixed, flexible, and especially unplanned to understand where your money really goes and how much you can save. Be flexible as you life changes, so do your goals and needs meaning your budget will change from time to time. Once you’ve gone through a few personal finance books, you’ll realize how important it is to make sure your expenses aren’t exceeding your income. The best way to do...
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