Have you thought that maybe you should start a family budget? There are many who have asked themselves that very same question, and then decided they would really do it. Most folks never really think about it very seriously; they just move on to something else. Many don’t know exactly how to start, so they really never do. Others feel that it will require a lot of work, which makes them lose interest. Others are just too lazy to try, or are lacking in motivation.
Are these types of explanations really valid? Are they really convincing? Were the reasons for and against considered? Were these considerations fair and well balanced? The concerns were possibly considered, but what about the benefits?
Possibly these excuses should be reconsidered. Let’s go over five reasons to start a family budget to see how things look from that perspective.
- Take a close look at your small expenses and unnecessary expenses. Good point. You note that all those small expenses really add up over the course of a year. Nonetheless, take into account that, when you multiply a year’s worth of small expenses by 5 years, you may be surprised at exactly how much money you wasted. Even more, consider that if you stopped buying those gourmet coffees from Starbucks every day, you could save $4 per day, $20 per week, $80 per month, $960 per year, or a staggering $4,800 in five years – plus interests if you had saved the money instead.
- Sit down, alone or with your spouse if you have one, and figure out your long term and short term financial goals. Once you have your financial goals, you will need to map out a route to attain them. That’s where a family budget starts because you first need to know where you want to go and then how to get there. That’s the reason that so many people don’t even bother to start a family budget, as so many have noted, because it seams like to much of a hassle. However, it isn’t that difficult once you sit down and start to make your budget.
- Never make the mistake of being too frugal by making a budget that could be considered a starvation diet. You need to be realistic and include all the indispensable costs, like food, shelter, clothing, utilities, and insurance. Furthermore, don’t forget to add in a reasonable amount for entertainment, and if you desire, the odd luxury or non-essential item!
- Set aside as much as possible for savings; money that is left over after deducting your expenses from your incomes in your family budget.
- Last but not necessarily least, if the amount that you manage to save each month is insignificant, then consider ways to augment your incomes. Work a few overtime hours every week, sell items that you have stored in your basement or garage that you don’t need, or look for other ways to save money. For example, take out a cheaper cable / Internet package, shop around for cheaper insurance, walk or cycle instead of always using the car, buy your groceries in quantity and at the least expensive stores, etc.
Now, consider all of those reasons and analyze them. All 5 reasons are strong factors that explain why it is advisable to start a family budget.
Simply think about it for a while. Do you not think that perhaps, just perhaps, you should start a family budget?
Starting a family budget obviously makes good sense, but it is just a small part of Planning Personal Finance So, visit William’s website to find out more information on Personal Home Finance so that you can learn how to manage your money better.