Oftentimes, money runs through our fingers. Those who have got a big family feel the need to control their family budget as nobody else. Sure, it takes some time before one learns how to deal with the income, how to control the expenses, and do the right decisions in terms of family budget. Luckily, in the Internet, there are a lot of different specialized media, guides regarding the smart financial planning. By using all the tips and tricks, recommendations, one will be able to stabilize the income-expenses flow and leave more money for entertainments and anything that contributes to one’s quality of life.
It is critical that everyone who wants to live a better life with all the needed conveniences, understands the principles of smart financial planning. To live well, one does not necessarily have to spend a lot. The point is that every thoughtful individual should take care of the financial education in order to provide own family with welfare and stable comfort.
For all the families, it is particularly important to plan the budget together and to talk about different ideas. The income cannot be increased in the majority of the families. Therefore, to get along well with the money until the end of the month, it is worth taking a critical look at the expenses. Often every family member has their own desires and needs that drive up expenses. The father brings more and more from shopping than was on the list, the mother likes to shop on the Internet, the daughter uses her smartphone intensively and the son likes to wear brand name clothing. Special consumption habits and the different handling of money can be a trigger for quarrels in the family.
Therefore, talk together about your different views and define binding rules of the game.
Especially when it comes to money, you avoid conflicts and enable your children first important experience in dealing with money. Think together about where you can save. Already by small behavior changes you can save so for the beautiful things of life – z. For common family activities. A household book will help you with your budget planning.
So, you decided to take of the family budget. What are the main steps? Knowing the revenue and expenditure of your household can help you make more of your family budget. Record all income and expenses of your family. If you put all the numbers together at the end of the month, you can see at a glance what your consumption habits are.
- Step 1: Determine revenue. Write down your monthly earnings. In addition to the salary, this includes, for example, child benefit or child support payments. Self-employed persons use the average amount available to them monthly after deduction of taxes. Those who have heavily fluctuating income can follow their last income tax return. Use the checklist on the back cover for a first orientation.
- Step 2: Record fixed expenses. In the second step, you list your fixed expenses, for instance, rent, insurance contributions and newspaper subscriptions. So that you do not forget anything, take the excerpts of your current account for the last 12 months at hand. Use the receipts to determine when and for what you spent your money.
- Step 3: The available budget. Monthly Revenue minus Fixed Spend Returns your Monthly Budget for Variable Expenditures. You can now manage this sum actively. Write down all current expenses. So that you do not forget anything, it is best to note down your expenses daily. Keep your household book at hand and involve all family members. This lineup is a good foundation for advising your family on how to save money in the future.
Compared with others Compare yourself to others: with the so-called reference budgets (address p. 51) you can see how many other households in a similar situation spend their lives. Take a closer look, if you spend much more or less in one area – there may be a need for action here.
These are the key moments to consider. Check out some tips concerned with every step more to become a smart and sly specialist in the family budget planning.