Budgeting goals for your family that you can implement today

Worried about the price hikes? And thinking how to tackle that? Don’t worry, like the country prepares its budget, the way a company makes a budget to manage all the resources and expenses, the similar can be done in a family so that you do not have to say ‘no’ to the always rising wishes of your kids and wife. Budget is very crucial part which if considered, can definitely bring about a change in the quality of life, and smooth functioning of a family.

Importance of budget

  • It helps you deal with unexpected expenses from as petty as buying a new cell phone to as important as a medical issue or accident.

  • It helps you to plan out savings too.

  • You can now address to festivals and parties if you plan out the month’s usual expenses and try to save.

  • You will be able to deal with the financial crisis, losses and recession at work. Changing the jobs will also become easier without second thoughts.

  • All the wishes of kids can be addressed without disheartening them.

  • You won’t have to re think whenever a guest turns up unexpectedly.

How to make a budget:

  • Review of the resources- the first and foremost step is to analyze what all resources are present, what all income is present in hand.

  • Prepare a budget-the budget should be practical and reasonable enough to follow and stick to, because many people make a budget but the main obstacle is to follow it, if the budget is not followed there’s hardly any use of preparing it. So it should be achievable and practical

  • Analysis of the expenses- this should be segregated into obvious expenses and unexpected expenses, the obvious are the ones which usually stays the same every month like grocery, electricity bill, water bill, cooking gas bill, internet bills. While the unexpected expenses should also be taken into account, like issues that need medical attention, gadgets that may require repair or replacement, shopping of dresses or stationery for the people in family

  • Documentation- nothing should be left in mind as you may skip them from consideration if it’s not in papers, so use spreadsheets and make a proper written account of all the expenses and savings.

  • Pay back the debts and loans- this is very essential as it affects the resources in hand and is one of the expenses which shatter the budget.

Goals of a family budget

  • Set priorities- every family’s priorities are different and thus it makes it tailor made and unpredictable, that’s why you need to plan it every month. You need to choose after considering which expense should gain a priority, for example, buying a new cell phone or laptop could be delayed over kids’ school fee or uniform.

  • Keep alternatives- you should always keep the alternatives in hand ready, for example, considering the previous example, choosing the kid’s school and education needs over the new cell phone and laptop, the alternative could be getting it repaired or get one on rental basis so that you don’t have to compromise either but consider the crucial one on a prior basis.

  • The goals should be oriented and achievable- don’t set up the goals in a rush, think over the achievability first so that it doesn’t turns to a stress rather relieves you off from the unexpected crisis or stress.

  • There should be special attention for the savings as they may help you in tackling problems later.

Though these are only few considerations that might help you go about it, but a perfect budget would be if it’s customized.

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