New year, new life and also new projects! It’s so good to be able to start over, is not it? So it’s time to roll up your sleeves, get organized, and do family financial planning for more success in 2017! Let’s understand all about it?
Having a budget to record your monthly income and expenses is critical to your family’s financial health. With it, we can identify unwanted expenditures, predict future situations, and differentiate the essential from superfluous to adjust what is really needed.
In addition to getting out of the red, doing family financial planning will help you set aside some of the amounts to make a reservation or even invest so the money works for you. Do this and get security, peace of mind and no longer risk getting debt.
So forget about that old conviction that you can leave now for what you can get now. The idea is that this year, you will direct and control your family’s finances more than ever. After all, nobody likes to feel lost, not knowing which way to go, right?
Rich people are not those who only earn a lot, but those who spend less than they raise and organize their budget. Want to be part of this select group? Read the tips I’ve separated for you and see where to start to improve your family’s finances as of today; )
1 – Talk to the family
It is very common for only one person to be responsible for the financial planning of the family. However, it is important to involve everyone. Bring them together and talk about the need to know what your spending is and promote cooperation to achieve a common goal.
To do this, share with your spouse and children what your strategies are for improving your family budget. With their participation, you will be far more productive and motivated than alone. And, early on, include the children in this planning.
It is essential that the little ones understand what are priorities and that if the family wants to travel on vacation, for example, some effort must be made. Teach them, therefore, to save water, energy, and limit cell phone expenses and trivia.
2 – Organize all accounts
Lack of control is the first warning that things may not be as good as they seem. Therefore: organize all the accounts of the family and face reality from the front. It’s time to look for measures that will correct any deviations in your budget.
The first step in the financial planning of the family is to collect all the receivables, which can be: salary, pro-labor, payments for services rendered and extra income, such as investments, etc. The important thing is to have everything at hand for easy analysis.
After that, list the expenses in the sequence, such as food, transportation, housing, health and leisure. The idea is to discriminate and segment all the family expenses that you own, separating each one of them. Example: The food should encompass the supermarket, snacks and meals required.
3 – Attention to small expenses
Include in the budget even those seemingly ‘unimportant’ expenses, such as coffee, candy for children or other small pleasures. By adding up these amounts you will be amazed at the amount spent at the end of the month. Mind that!
One way to focus and commit to family financial planning is to organize the movement of values and to calculate the final balance of your account. To do this, record all inputs and outputs – even small expenditures – and the expense group to which they belong.
Updates should become a daily routine, as well as the control of every purchase or payment you have. Do not forget to describe future releases (accounts payable and cash receipts) to know exactly what residual amount is available each month.
4 – Use a spreadsheet
To describe and add up all expenses and revenues use a spreadsheet. The simpler and more adapted it is to the needs of your day to day, the greater the chance of being committed and doing the periodic maintenance.
Then keep all the records of purchases you make and enjoy internet banking to include in the update. Regardless of the bank, every move of your account will be online for you to track. Make good use of this information and post it directly to your worksheet.
5 – Define expenditure ceilings
With all the expense areas listed and your account revenue and expense records in hand, it’s time to check how much you can cut out of all expenses. The idea is that you stipulate a new cost ceiling for you and your family. Come on?!
By putting all that we spend on the tip of the pencil, we can have a real sense of how much can be saved. Therefore, all care is little when dealing with money, otherwise, we can cause a real collapse in our finances. So, value every cent received!
6 – Pay the debts
Does the family have unpaid debts? Define how much of the revenue can be used, monthly, to pay for them. But it is very important to only commit to the amount that can be withdrawn from the budget. Do not harm priority areas and stick to this purpose.
Now learn the lesson and think hard before making a purchase, especially if the object of desire has a high cost. Also be aware of the famous discounts, baits to make you spend more. Do not fall into this trap.
If you really need to buy something, do some research beforehand! Also prefer in sight, this is always the best alternative, since you can negotiate a real discount. And if you can not pay on an item, take nothing. It’s that simple. Combined?