- Personal Finance
Your family budget is very important
Most people at some point of their lives found themselves in financial straits when they saw their expenses were so big that they did not know how to get the money to leave their accounts to zero. I think many of us have more or less gone through that situation.
At all times of life we need to be organized so that things go well, and even more when it comes to managing our money. So if we want to have a healthy economy, we must have a spending budget to know in what we are going to spend or invest our money.
It is not necessary to be a financial expert to learn how to make a spending budget and organize our economy. Among other things, it requires some thought and write down which are the essential and basic expenses we need to live, then compare them with our incomes and try not to exceed them, because if they exceed our revenues we are in trouble. So, if there are excess costs, it may be due to the following two possibilities:
1) We have an exaggerated basic cost of living. In this case, we have to observe again the expenses and eliminate those that are not really necessary.
2) We have insufficient incomes to cover the expenses that are minimal and really necessary to live with dignity. In that case, we should see how to generate other income sources of money to can supply all the basic needs.
I think this is a very exciting topic because it seems simple seen from outside, but when we begin to have problems with our finances and we want order us to stay afloat, not everyone achieve good results and not everyone have enough behavior to succeed in this area of their lives.
The Family Budget can be defined as the amount of money we need, in a period of time, to deal with the overhead of our family. This period of time can be weekly, biweekly, monthly, etc. It depends of the period in which people receive their salaries, the period in which they receive their income or the period when people decide to schedule their expenses. We can say without fear of being wrong that those who do not have a budget and a control of their spending inevitably go towards economic failure. Having our economy organized allow us to know in what we spend or invest our money, but also allows us to see what savings capacity we have, and based on that we can project the future and see how long it would take us to achieve some specific goals. For example: go on vacation, buy something that we need for the house, change the car, see if we can send our children to a better school, etc.
It is not difficult to create and follow a reasonable family budget, but it can be annoying because it forces us to sit down, analyze and put a cut to many of our bad habits with the use of money. We are immersed in a highly consumerist society and it is not easy for us to reflect on how we spend our money, whatever our goal. Following a family budget requires we think carefully about our spending and understand well our financial situation day to day, week to week or month to month.
It is important that when we plan our economy and reflect it on a budget, we take into account all expenses we know will be, no matter how small they are. We must also be constant in respect what we budgeted, so that with the pass of time we will make it a habit to comply our family budget. When we have it incorporated as a habit, unfailingly we will achieve the success in this area.