Secrets Of Keeping To The Family Budget

In today’s world, wherever you are, whoever you are, the cost of living is getting higher and many families are been compelled to cut spending. Budgeting has suddenly become a priority for families. As bills and inflation rises everyday, nothing is more important than knowing how to wisely spend the meager income that you get.

Financial problems usually arise due to lack of proper budgeting skills, or failure to keep to the proposed budget.  No matter how much income you may have, it is still important to keep track of your assets and liabilities, your earnings and expenses.

It is not strange for a person who earns several thousands to have the same problems with the person who earns barely a few thousands. The common reason is that, different kinds of people, with diverse income levels, have budgeting problems. Some, who may have been successful in making a budget, usually fail to keep within such a budget.

A budget refers to a financial plan, taking the incoming and outgoing monetary resources into consideration.  A good budget should not only mean a balance or equity between income and expenditures.  It also means lesser expenses, and making an allowance for savings.

If you earn fifty thousand naira per month, you should map out all the necessary expenses you and your family will incur during the month such as payment for your house, food and transportation. Of course, this is presuming that your tax liabilities have already been settled.  What remains after you deduct your total expenses from your income is your savings.

What you do with your savings will make a difference later on, when the need arises.  You can choose to keep your savings in a piggy bank or place it in a bank where there is minimum interest rate but at least your money is safe from you and from intruders.  With a bigger savings, you can get the services of a financial adviser who can give you higher-yielding investment options

Here are tips to make sure that you keep within the family budget:

1.         Maintain a logbook where you can list your income and expense account on a weekly or monthly schedule. 

2.         Buy your groceries or food stuff at one time.  To do this, make a list of all the things that you would need for your target period and purchase them at one time.  Sometimes, there are discounts if you buy by the dozen so take advantage of this.

3.         Avoid going to the supermarket and shops if you do not need to buy necessary items. This will control impulse buying and keep you from making unnecessary purchases and keep you from straying away from your budget.

4.         Think twice before you buy something.  By doing this, you will realize that it is not really a necessity but a whim. It is not everything your spouse of kids demand for that must be bought if it is not a need or timely.