Planning Family Finances for the future is important for your family to maintaining a table family financial. By financial planning and achieving financial stability will also help to you family from financial crisis. We will help you create a budget in order to examine which expense could be reduced, so that you can set goals to limit your spending. you will learn how to set debt reduction and make savings goals. After examining your expense reduction, debt reduction, and savings goals, you will be prepared to develop a spending plan. Creating a budget and spending plan will assist in attaining financial stability.
Your Family Money Management
I want to tell you, You are not alone here ! Financial problems are a common problem now. Financial troubles such as falling behind in paying the bills, accumulating credit card debt, or being forced to put a second mortgage on a house happen to people everyday, everytime and everyminutes. Then, Are you faced with the financial disappointments of not being able to afford that new car or vacation to some beatiful place, or not being able to purchase a house because of your credit problems? Is there constant fighting in your household about family members’ spending habits? Have you been putting off saving money for emergencies or for longterm goals such as your child’s college or your retirement? If your answer "YES", the following information will be helpful to you. You can prevent financial crisis by being organized and prepared with your finances.
The best way to achieve financial stability is to create a budget and develop a spending plan to get rid of debt and save money. Financial stability is achieved when you are able to meet day-to-day financial obligations, which include establishing a savings plan, reducing debt to a controllable level, and establishing an emergency fund equal to 3-6 months’ living expenses. The keys to successful financial planning are good record keeping and all your family member's must consistent to implementation of your plans.
Creating your family Budget
Create a budget for your family will allow you to see your current financial status, as well as allow you to see where your family expenses can be cut back. The first step is to organize all of your financial information. You will need the following:
Step 1
Figure out average monthly net (take-home) income. Do not include unexpected income. Do include average earnings from stable supplemental income.
Step 2
Figure out average monthly expenses. Combine ALL monthly expenses, including basic needs and discretionary spending (entertainment, donations, and investments). Pay attention to the amount you are spending on fixed expenses (such as the mortgage payment) versus your variable expenses (e.g., eating out).
Figure out monthly balance by subtracting monthly expenses from monthly income. This will tell you how much money you should have at the end of the month to put into savings. If you have a have a negative monthly balance (you are spending more than you earn), you need to reduce expenses.
Step 4
Examine expenses to see where you can reduce spending. Pay close attention to the non-necessary items (entertainment, expensive gifts, or vacation expenses).
Your Family Money Management
I want to tell you, You are not alone here ! Financial problems are a common problem now. Financial troubles such as falling behind in paying the bills, accumulating credit card debt, or being forced to put a second mortgage on a house happen to people everyday, everytime and everyminutes. Then, Are you faced with the financial disappointments of not being able to afford that new car or vacation to some beatiful place, or not being able to purchase a house because of your credit problems? Is there constant fighting in your household about family members’ spending habits? Have you been putting off saving money for emergencies or for longterm goals such as your child’s college or your retirement? If your answer "YES", the following information will be helpful to you. You can prevent financial crisis by being organized and prepared with your finances.
The best way to achieve financial stability is to create a budget and develop a spending plan to get rid of debt and save money. Financial stability is achieved when you are able to meet day-to-day financial obligations, which include establishing a savings plan, reducing debt to a controllable level, and establishing an emergency fund equal to 3-6 months’ living expenses. The keys to successful financial planning are good record keeping and all your family member's must consistent to implementation of your plans.
Creating your family Budget
Create a budget for your family will allow you to see your current financial status, as well as allow you to see where your family expenses can be cut back. The first step is to organize all of your financial information. You will need the following:
- bank statements & checkbook register
- monthly bills (e.g., credit card, electricity, phone, water)
- information about your monthly and supplemental income
Step 1
Figure out average monthly net (take-home) income. Do not include unexpected income. Do include average earnings from stable supplemental income.
Step 2
Figure out average monthly expenses. Combine ALL monthly expenses, including basic needs and discretionary spending (entertainment, donations, and investments). Pay attention to the amount you are spending on fixed expenses (such as the mortgage payment) versus your variable expenses (e.g., eating out).
- Rent/mortgage payments
- Car payment(s)
- Insurance
- Home and car maintenance
- Credit card payments
- Real estate and property taxes
- Utilities (water, electric, gas, phone, etc)
- Day care/kids’ expenses
- Clothing, personal hygiene (hair cuts, toiletries)
- Medical/dental expenses Entertainment (movies, restaurant eating)
- Vacations/birthdays/holidays
- Groceries including convenience food (meals, snacks, and beverages)
Figure out monthly balance by subtracting monthly expenses from monthly income. This will tell you how much money you should have at the end of the month to put into savings. If you have a have a negative monthly balance (you are spending more than you earn), you need to reduce expenses.
Step 4
Examine expenses to see where you can reduce spending. Pay close attention to the non-necessary items (entertainment, expensive gifts, or vacation expenses).
To Be Continued...
