Part 2 (2/2)

13: Family budgeting is not something that is taught by parents or schools; however it is such a simplistic concept, process and task that it is almost unthinkable that we are not placing greater focus on it these days.

In the end, it is all about what you DO, to make ends meet, which implies action. To be in charge of your finances; family budgeting gives you a sense of real understanding and control over your money, not the other way around. Money is a 'tool' and life necessity but it does not prescribe how you should live or spend it.

14: Family budgets allow you to gain knowledge you would otherwise not have had at your fingertips, concerning your own and family finances.

For example: Knowing where and what expenses you can affect or effectively change, to cut costs appropriately, timely and immediately in certain cases is very helpful.

15: To enable your family budgeting process set up an easy and orderly log, record-keeping and filing system; and make spending notes often to track your money and habits. Trust me, we do not know where all our money goes. We are just certain of one thing and that it slips through out fingers, hands and pockets, cards and plastic, fast!

16: Understanding, explaining and sharing the benefits of good budgeting with others is pivotal, to get them on-board and partic.i.p.ating actively in the family budgeting process. Ask for their ideas and input. Two heads are better than one in most cases. They might think of savings opportunity, consolidations and or things to do without, that you did not even think about or considered for a second!

17: Here are some more family budgeting summary steps to remember: - Identify and categorize all expenses look at categories and line items, types and timing of expenses, amounts and budget accordingly. Remember categories like miscellaneous, discretionary, maintenance, emergency and others. These will also provide you with a little more flexibility when you do have to ma.s.sage your money, budget and cash flow processes to meet need, demands and change.

31.- It is of utmost importance that we are able as family budgeters to allocate and adjust expense items, prioritize need with foresight, discretion, informed choice and empowered confidence, stemming from core and in-depth knowledge and accurate information.

- Practice utilizing a basic budgeting framework and recording method in your family budgeting and formulate your very own personal and or simple 'Home Budget' or rough first draft of your financial situation a kind of YOU ARE HERE situational a.n.a.lysis.

Chances are you will see and learn something you did not know before.

- Even if you feel you just have a basic understanding of budgeting and how it can improve your own management of your own and household finances will make a difference. Take the time out to explore and try putting your first one together, following the steps given earlier in this booklet.

This guide and its content, will appeal to almost anybody: - anyone who recognizes the need to budget; - those who have never or not yet learnt how to budget; - individuals or groups who are looking for a first-step debt-consolidation strategy and technique, - someone who has come into some money through a lottery, casino win, gift or inheritance and want to ensure they know how to budget properly before they start spending left, right and centre.

- It is good for moms , dads, grandparents, children, friends and families to do.

- It fosters independence and fiscal responsibility, accountability and stewards.h.i.+p.

- Even those with reasonable income, now receiving less, will find some answers here.

- The one who needs to understand expenses that need to be adjusted; and - even those who prefer to feel and be in control of their expenses.

- Family budgeting enables them to be in the position to know where they need to modify their lifestyle and make significant adjustments to ensure a bright and happy financial future.

Some of the most important process elements and content pieces of family budgeting to read 32 more about, study, learn and practice, hone and refine are: - A fundamental understanding of the principles, merits and mechanics of budgeting and the budgeting process itself. All the process steps to get your through the journey and to the resulting doc.u.ment, tool or magic numbers!

- Distinguish between fixed, variable and discretional expenditure(s) - Identify and categorize all expenses, breaking them into categories and line items, time-frames, other detailed sub-cla.s.sifications and cl.u.s.tering; - How to set-up housekeeping budgets and what to consider - Identifying hidden expenses - Identifying areas of discretionary spending, habits and perhaps over-spending risk areas - Setting up expenditure recording systems - Decide on the best way suitable for you and your family to monitor what you spend - Set-up a very basic Home/Personal Budget Filing System - Any calculations, formulas and budget principles you think will help you maximize and optimize your cash flow and money-management Another great way to learn about family budgeting is to ask around and to learn from others.

With the internet at our disposal, there are numerous reliable sources of practical, tried, tested and true tips, strategies and techniques to follow. We selected but a few to provide a sample.

Never underestimate the power of a shared experience!

Sometimes exploring a financial activity like family budgeting conceptually is not enough.

Getting a practical perspective, with some hands-on tips can be more meaningful that a close description or a.n.a.lysis.

There are lots of definitions, opinions and numerous books have been written on the subject of budgeting for families, by families and others. In our information-age, knowledge is power these days and lots of parents and professionals share and voice their opinions openly on the internet, sharing and growing the body of knowledge. We selected a few examples to encourage others to explore these at their leisure as well.

Here are ELEVEN more practical suggestions and tips from online users posted on the internet on family budgeting: 33.1. Keep a record book as well as your bankbook It takes time and requires a lot of self-discipline. Start each month with the balance and enter every payment, etc in advance, in the form of a calendar. It works well for most people due to the fact that they always have their actual working balance handy. Remember the comment about having your financial information at your fingertips? Here is a sure-fire way to get you on that path quickly.

2. Calendar Calculations Putting regular bills on a calendar based on due dates and when salaries are received proves helpful to some. This helps specifically to get everything paid on time and keep in perspective where the money actually goes, since all miscellaneous expenses are also recorded.

3. Getting bills paid Working out all the major and large bills (i.e., rent, car payment, insurance, etc.), dividing it up so every week, that amount is removed from the family 'paycheck'. Therefore, at the end of the month, there is need or risk to lose an entire paycheck to rent or car registration.

4. 1-2-3-4 Plan Divide all bills weekly. A set amount goes to a savings account each week. When there is a 5th Friday in a month, you have a ”free paycheck” to save.

5. Open a household account In a second checking account, deposit a sum that covers your monthly expenses. Have all of your bills automatically withdrawn. This account acts as a holding cell for household obligations - the primary account is for day-to-day operations. Works for me!

6. A timely budget Get a notebook. List expenses and their due dates. Divide payments into small amounts & use labeled envelopes for payments and money storage. Reduce duplicate credit usage to 1 or 2 credit cards. Use the net for bill paying and to check your accounts.

7. Yearly savings Making a list of all annual or once-a-year type bills (car registration, shots for pets, school pictures, etc.) and divide them by 12. Save this amount each month and, when one of these items 34 come up, you have the money to pay it. No more surprises.

8. Save credit card receipts Keep an envelope in the car for the credit cards you use. When you buy anything using a card, put the receipt in the envelope as soon as you enter the car. Keep changing the envelope every month. This will save you time and ha.s.sle when looking for receipts.

9. Only twice a month Separate all bills to be paid on either the 1st or 15th of the month. This enables you to pay all bills at once and on time. An added bonus is that you will also immediately know how much money you have left over for entertainment, vacation and other discretionary items.

10. Split into Savings and Checking Figure out a budget based on a savings account/checking account split. Savings builds up for things like real estate taxes, vacations, and insurance. Checking is monthly (e.g. phone, groceries, etc.). Split your monthly income into the savings and checking accounts according to the budget. Savings amounts are strictly budgeted. The checking account is controlled by watching the balance until the next payday.

11. Respect your partners need for financial security Everyone likes to buy their toys, but the overall financial security of the household needs to be considered first. I am not against toys; just save up the money first to buy them versus putting non-essential day-to-day expenses on credit.

An example of a toy in my relations.h.i.+p was the spouse's need to have a big expensive truck in the driveway. I was not against the truck, I was against the debt to purchase the truck when there was no money in the savings or money built up for college tuition. Be considerate of the overall family financial situation and provide financial security for your family.

Moreover, on 'living within a family budget', online users listed FOURTEEN more great practical suggestions on family budgeting: 1. Stay busy after work One ”easy” way to avoid overspending and thus stay within your budget is to have something else to do after work. Get a second job that is fun, go to school, volunteer or get into great 35 physical shape. The more you do, the less you will spend!

2. Watch those miscellaneous categories Make sure you have enough well-defined categories to capture your true spending. Putting too much into a miscellaneous category makes it harder to track what you have spent and harder to control, especially the splurges!

3. Need If you did not know you need it, you probably do not. Do not buy things just because they are on sale. If you had no use or want for it before you saw it on sale, then you will have no use for it later.

4. Save money for special occasions on a budget Add up how much you will spend on Christmas, birthdays, etc. Treat that total like it was a debt and make payments to a savings account for special occasions. Be sure to select a specific day of the month that your payment is due and stick with an amount.

5. Don't Forget to Budget for Special Occasions When forecasting your expenses, remember to include gift-giving occasions. Mother's Day, Valentine's Day, birthdays, Christmas, and anniversaries are good examples. If you plan to spend money on these occasions, remember to include this in your budget.

6. Don't use a debt to get out of another debt Do not take out a consolidation loan to pay off your other debts. The point is to get out of it, not to squeeze them together and end up paying interest on the loan while paying off your debts. Try consulting a ”free” debt counselor service first.

7. Remember To Budget Time As Well We have all heard ”time is money.” Well-spent time can be an investment. Take a few minutes to plan ways to save on bills - 15 or 20 min. researching lower rates on electricity or long distance can pay off. You will know when time spent is not worth it.

8. The envelope system Total yearly/monthly bills, divide each into 12 months. Divide monthly amount into bi-weekly payments. Use envelope for each bill; put in cash every 2 weeks. Use only the cash in envelope 36 till it is gone. Do not touch your account/debt card! Envelopes ONLY!

9. Good teeth cheaper You can go to a dental school to have your teeth cleaned, filled, orthodontic work done, etc. The cost is approximately half what you would usually pay. Note: Make sure you have some extra time as this takes a little longer.

10. Avoid expensive friends Avoid friends who want to go for drinks all the time or suggest an evening at home. The money you spend on drinks and snacks, can buy something better, or go into your savings account. Also avoid friends who want to have supper at your house because you are a ”good cook” what that really means is that they are saving money while you are grocery shopping.

11. Keep Track of Your Expenses on a Daily Basis I call the bank's automated line and do my banking every single night before I go to bed. I can see what checks and/or debits from my debit card are posted and what my running balance is. I compare with what I have in my checkbook or with receipts. This only takes about 10 minutes.

Often people get into trouble when they try to keep a running total of what they have left in their head and get into trouble.

12. How To Live Within Your Budget Organize, budget, and beat stress.

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