Sm Priorities And Budgeting The Family Money

Sm Priorities And Budgeting The Family Money



Priorities Bring Focus to​ Family Budgeting
Often times,​ the​ family budget is​ a​ source of​ conflict. Most of​ the​ time,​ the​ major earner makes the​ final financial decision,​ which isn’t always a​ welcome deal for the​ rest. Since money is​ such an intrinsic part of​ family life,​ families need to​ achieve accord in​ this aspect. There is​ a​ fourstep cycle in​ budgeting the​ family money to​ maintain peace and harmony.
1. Set your priorities.
Priorities are different from goals. They are aspects in​ your family’s life that you,​ as​ a​ family,​ want to​ set focus on,​ say health or​ children’s future. While goals are specific targets that support priorities.
In setting priorities,​ do not set too many as​ it​ defeats the​ purpose. Ideally,​ there should only be one,​ but because life is​ not ideal,​ 2 to​ 3 are reasonable.
As the​ priorities are set and agreed upon,​ write them down. Post the​ paper where everybody can see them to​ remind them of​ what your family is​ focused on​ for the​ next few years.
2. List down your goals.
Once the​ family has set and agreed on​ priorities,​ the​ next step is​ to​ set the​ goals. Goals are specific and measurable conditions that,​ when achieved,​ will support the​ priorities.
In setting goals,​ establish a​ target that is​ both challenging yet achievable. a​ 1015% of​ the​ family’s income is​ a​ good savings target for a​ child’s future education stretching yet reachable.
Try to​ limit your family into setting 12 goals per priority,​ to​ maintain focus.
3. Work towards your goals.
After setting your priorities and goals,​ start living by them. All of​ the​ family’s activities will be geared towards working at​ your goals. Track progress,​ particularly on​ financial goals,​ by using an income and expensetracking tool. the​ simplest way is​ to​ get a​ notebook and list down all expenses and incomes and set a​ budget for future spending. There are those that invest in​ computer software or​ a​ family accountant. Whatever it​ is,​ the​ important thing is​ to​ have a​ system of​ monitoring the​ family’s performance towards achieving their goals.
4. Evaluate your family life.
At a​ certain point in​ time,​ when you feel like it’s time to​ evaluate your life,​ check how your family is​ doing against the​ goals. Goals that have been achieved can be checked off the​ list,​ and new ones can be formulated.
At times,​ in​ major changes,​ say a​ career move,​ or​ when a​ family member goes away,​ it​ may be time to​ reevaluate priorities. When such a​ time comes,​ then the​ cycle begins,​ just like what it’s for life!




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