You must have heard of the quote by Benjamin Franklin that says, “Beware of little expenses; a small leak will sink a great ship”. It sets an unblemished example to the idea of saving and spending. Every parent loves to spend over their children since when the children do not even know that the parent is spending a huge amount of their income on them. Similarly, the parent does keep in their mind and makes effort to spend on every call of their children as well. However, spending on the unnecessary stuff without making a plot and later being worried in case of an emergency is probably a situation in which nobody would like to see themselves. The idea behind bringing yourself to this scary situation is to understand the importance of maintaining a healthy budget, which will surely aid you in coping up with any such circumstance.
A budget is simply the idea of maintaining the record of your previous spending and make most out of it by using that information to plan your further spending. Contrary to it, the other situation would be that you know about your previous expense and are familiar to the fact that it was not suiting your pocket; still, you do not make any effort to control that expenditure. One would surely try not to come across to the second mentioned situation. However, the key to it is “Spend less than you earn”. Now let’s breakout this idea in small and easy ways through which you can maintain your family budget.
Deciding your partner to manage budget
Although it is significant for everyone to be familiar with the family budget; but you and your partner should plan it out initially by jotting out all the means of income and the expenditure in order to compare and manage the budget in future. This will allow you to have a sense of control over the access expenditure and make savings for the rainy days.
Maintaining the Budget
The budget plan should not be in the air or in the verbal form. It must be planned and recorded so that it could be revisited after the decided time period. The other reason for recording it is that after the evaluation, necessary alterations could be made easily. There are several mediums available to keep a record from the ancient pen and paper technique to the spreadsheets and the timely introducing online available budget recording and financial software. Moreover, the budgeting ideas may vary from family to family as there can be a difference in income, expenditure, family members, lifestyle and much more.
The time frame and visiting the activities within the frame
Deciding the time period of the budget is a vital step in the process. One shall decide the time period; be it, weekly, monthly, quarterly, biannually or yearly. Then they shall revisit their set goals for the time frame and gauge their estimations and whether they accomplished in attaining their set goals or not. Moreover, while deciding the expenditure the families shall also take in consideration the forthcoming events such as birthdays, anniversaries, weddings etc so that the amount of expense to be made during those events could be calculated in the estimated expenditure amount. Also, the seasonal increase or decrease in the utility bills such as the fluctuation in the electricity bills due to use of air-condition in summers and heaters in winters shall be included in the estimations.
Cutting off the add-ons
Dining out because you do not know what to cook. Eating out because you feel lethargic to cook are the reasons that will upturn your bills and the story does not end here, they will also lead to upsurge your medical bills as well. Dining out frequently can also lead to an unacquainted health issue. On the other hand, planning your family meals is a great idea that will assist you in maintaining a healthy budget as well as provide your family with a healthy happy life too.
Planning a vacation to foreign countries every year itself is a massive budget buster. The basic idea behind arranging a vacation is to have a bank of memories along with your family. For serving this purpose, one can visit the other cities or towns and nearby places may be cultural heritage, amusement park or plan a movie time etc. These will remain pocket-friendly along with spending time with their families and make it memorable. The key to happiness should be family time instead of an expensive tour abroad.
Educating children where to spend
By the passing time, the children are getting as smarter as the technology. One shall be picky enough to choose an adequate vocabulary to inform their children that they can save for it and get it later or maybe by asking them to reflect if it is actually important to buy it now. Instead of, telling them that they cannot afford it. Additionally, the fact that works, in this case, is that children do learn what they see others practising rather than, being told to do anything.
Therefore, one shall put in efforts to make their family budgets and try to stay on track. If a family sets the aim of spending a debt free life they automatically opt for a care-free life as well. Thus, one shall not take it as a difficult task to save money, rather take small steps to do so along with having their family on-board. This will also give your kids life-saving lessons and experiences to lead their family as a virile.