Why can't I manage the family budget well? Because of my salary below the needs of the family? Inflation that lowers purchasing power? More and more costly needs?
Let's first take a look at the 9 essential points for keeping the family budget in good shape. Because managing the family budget well makes it possible to know and master family finances.
Motivation: What are your financial goals? The best way to mismanage the family budget is to start without motivation and without financial goals. A family budget is kept day after day, month after month and year after year. Contrary to what it might suggest, it is not tedious. But we must clearly define the goals by keeping this budget. This leads to strong motivations, deadlines, and quantified targets.
Example: switch from a debit account to a credit account in four months and reach monthly savings of x euros.
read also family budget tips
Understand the family budget: it is not a question of simply recording income, expenses and the difference between the two, but of making forecasts on all the elements of the budget. It is then possible to know in advance - for a given month - how much the expenses exceed the income. And the actions to be taken to balance the budget. Expenses: to control this side of the budget balance, it is absolutely necessary to focus on all expenses, identify them, categorize them, quantify them by period (week, month, year). Income: wages, family benefits, windfall earnings, investment income, interest received, donations, all income must be entered in the budget.
To note in the income an amount which must be reimbursed to us when it is a simple promise and to make expenditure forecasts on this basis seems a little light, isn't it? The result: after recording the expected expenses and income, a simple subtraction gives an idea of the state of family finances. Either, the expenses are greater than the income and it is necessary to find the necessary resources to finance the difference (most often the credit card). Either, the incomes are above expenses and the family has the means to finance its projects for the future: purchase of the family home, financing of children's higher education, savings, etc.
Savings: with inflation, the growing needs and the current state of the economy, saving is becoming more and more difficult.
I know, you've already read and heard this sentence.
I believed in this, but I can tell you this: whatever the current state of your finances you can save a fixed amount every month and reach the desired amount at the end of the year. How? 'Or' What?
The answer to the article: Yes! you can save! The proof.
Monitoring and analysis: a well-managed family budget requires regular monitoring:
- adapt actions in order to reduce this or that expense,
- reflect on the differences between the planned and the achievement,
- knowing perfectly where the family's money goes and what they can afford with their income.
Budget types: weekly, monthly, annual, cash-based, or more complex budget with the management of different accounts.
There are several types of budget suited to the family's financial situation.
But you must carefully choose the type of budget to use in order to adapt it to your realities, to manage the family budget well with ...
The budget supports: This involves setting up an easy filling system. The simplest is the notebook. I can still see my father carefully recording the family expenses every night.
But it would be a shame to do without today's sophisticated tools: spreadsheet (Excel, Calc, Lotus, etc.) or family budget management software for PC or Mac. Some software can even be used on smartphones.
Understand the family budget: it is not a question of simply recording income, expenses and the difference between the two, but of making forecasts on all the elements of the budget. It is then possible to know in advance - for a given month - how much the expenses exceed the income. And the actions to be taken to balance the budget. Expenses: to control this side of the budget balance, it is absolutely necessary to focus on all expenses, identify them, categorize them, quantify them by period (week, month, year). Income: wages, family benefits, windfall earnings, investment income, interest received, donations, all income must be entered in the budget.
The amount to be received must be quantifiable, predictable and secure like the salary.
To note in the income an amount which must be reimbursed to us when it is a simple promise and to make expenditure forecasts on this basis seems a little light, isn't it? The result: after recording the expected expenses and income, a simple subtraction gives an idea of the state of family finances. Either, the expenses are greater than the income and it is necessary to find the necessary resources to finance the difference (most often the credit card). Either, the incomes are above expenses and the family has the means to finance its projects for the future: purchase of the family home, financing of children's higher education, savings, etc.
Savings: with inflation, the growing needs and the current state of the economy, saving is becoming more and more difficult.
I know, you've already read and heard this sentence.
I believed in this, but I can tell you this: whatever the current state of your finances you can save a fixed amount every month and reach the desired amount at the end of the year. How? 'Or' What?
The answer to the article: Yes! you can save! The proof.
Monitoring and analysis: a well-managed family budget requires regular monitoring:
- to record expenses and income,
- adapt actions in order to reduce this or that expense,
- reflect on the differences between the planned and the achievement,
- knowing perfectly where the family's money goes and what they can afford with their income.
Budget types: weekly, monthly, annual, cash-based, or more complex budget with the management of different accounts.
There are several types of budget suited to the family's financial situation.
But you must carefully choose the type of budget to use in order to adapt it to your realities, to manage the family budget well with ...
The budget supports: This involves setting up an easy filling system. The simplest is the notebook. I can still see my father carefully recording the family expenses every night.
But it would be a shame to do without today's sophisticated tools: spreadsheet (Excel, Calc, Lotus, etc.) or family budget management software for PC or Mac. Some software can even be used on smartphones.
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