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Thursday, November 26, 2020

Secrets of keeping to the family budget


The high cost of living in today's society, wherever you may be, has made budgeting a priority among families.  Nothing is more important in today's inflationary world than knowing how to wisely spend the meager income you get.

Financial problems usually arise due to a 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 ironic, but a person who earns thousands will have the same problems as the person who earns by the hundreds.  Most often, different kinds of people with diverse income levels have budgeting problems.   Others 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 a thousand dollars per month, you should map out all the necessary expenses you 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 a minimum interest rate, but at least your money is safe from you and from intruders.  With bigger savings, you can get a financial adviser's services 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 to list your income and expense account on a weekly or monthly schedule.  

2. Buy your groceries 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 the necessary items.  This will 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.

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