Many families want to have good budget habits, as well as teach their children smart money management. There is no better way to teach your children good budgeting methods than to do it yourself and let them see how the family works financially. The family income budget does not have to be difficult, especially to begin with, if you are the first budget.
One of the worst things newcomers must do is to undertake a complex plan that almost guarantees failure. Creating and following a family budget is like any other established habit. To succeed, you need time, commitment and repetition. Here are some simple steps you can follow to start a feasible budget plan that will ensure your success in the first month.
Set your goals
Decide what you want to achieve specifically this year and in general over the next 5 years. Do you want to save money, pay bills, invest, buy a house, buy a car, save on education? If you write down your goals, you can decide how to divide your current income in certain areas to achieve your goals. So far, everything is simple.
Estimate your current income
You should mark the general categories of expenses, such as food, gas, car payments, mortgage, insurance payments, food expenses and other expenses. Record when each payment or expense is due or occurs as well. Count! Compare your real income with what you actually spend each month (without using credit cards to make up the difference!)
Make the necessary changes
See if your income is comparable with what you actually spend, if you have some money left, if you constantly trade in red, constantly changing payments to cover the next term. Make the necessary adjustments, reducing unnecessary expenses so that you can live each month with your income. If possible, reduce costs even more so that you can start channeling money to at least one of your short-term goals for a year and at least one of your long-term goals for the next five years. Even if at the beginning of 10 dollars, do it. If you want to pay an annoying bill, put an extra $ 20 in cash until it is paid. Nothing is too small to matter for the future. This is a habit that is important here.
Devote yourself and your family to the goals and steps necessary to achieve this goal. Allow all family members to be accountable to each other and participate in the achievement of goals. Keep in mind the accumulation of more debt, impulsive purchases and loss of financial attention to your goals. Give yourself a solid year to work on your plan such as that of Easy Find Singapore. You will be surprised at what can be achieved if you take just a few simple steps towards the financial well-being of your family.