Tips to Keep Family Finances in Great Shape

Family finances

A family needs a working budget to be able to run the household smoothly. Without a budget, the family finances will undoubtedly go awry. An effective budget should consider certain important elements such as: income, necessities, lifestyle, emergency budget and retirement savings, Health Acces: best palliative care in montreal is affordable but you still need to do some savings for it.

Here are some important tips that can help keep the household running smoothly:

Spend on Necessities First

Buy the necessities first. Do not spend on things that the family can do without like buying a new television. The most important expenses are: food, shelter and utilities. Make sure that you paid the rent or mortgage, groceries, electricity, gas and water first before indulging in luxuries.

The envelop method is one of the best ways to curtail expenditures. To do this, all you need is set aside one separate envelop for each of the necessary expenses every month. Whatever is left after filling each envelop is the amount you are free to spend.

Buy in Bulk

When you buy in bulk like in a warehouse store, you get discounts on the purchase. This is because the warehouse saves money on packaging and the labor on having to stock the item piece by piece. Take advantage of the steep discount the retailer provides. But, buy only products that your family consumes quickly like paper towels, toilet paper and other dry goods. Or, products that does not easily spoil and can be frozen for more than a week.

Lifestyle

Living within your means is a good rule to follow when it comes to lifestyle. There is no use having an expensive lifestyle if you cannot afford expensive holidays or taking constant trips. The lifestyle budget pertains to the little luxuries that the family allows themselves.

A comfortable lifestyle is one that can afford all the necessities at the same time some luxuries. Having a family day on weekends is a good practice. Dining out with the family members every Sunday after church may cost some money but it does promote closer family ties.

Debts and Loans

Debts and loans are an important part of the family finances. There will be times that the salary will not be enough to meet urgent needs such as hospital bills or if the rent is due and payday is still few days away. Getting a payday loan might be necessary. It is temporary fix to a potential financial problem. Before the situation worsens, a short term payday loan can get you out of the financial rut you are in.

Credit card debts, home mortgage, car mortgage, loans and other debts need to be paid every month. If not, the interest charges could blow out of proportion. Your family should set aside money for the monthly payments. This is the best debt management strategy to eventually pay off all debts.

Emergency Savings

A certain portion of the income should be set aside for emergency savings. This is the money used for emergency situations such as sudden illness or injury. If financial problems will arise in the future, you can at least be sure that you have the money to meet a part of the obligations. It may not cover all the expenses but it will keep you afloat while you are searching for other means to secure additional money like a part-time job.

Retirement Savings

Retirement savings should be part of the family budget. This is the money that the couple will spend when they can no longer work. Bigger savings mean a more comfortable lifestyle once the two of you retire. Getting retirement savings plan or simply setting aside money in the bank for retirement is a great idea.

Managing the family finances well will keep the household running smoothly. It will help the family make ends meet. Having a clear and specific budget can stretch the dollar to its fullest potential as they will learn more about Lending Tree.

For sub-prime financing and lending, families can always call the santander customer service 24 hours a day, 365 days a year.

[About the author: Andrew Greene is a freelance writer who blogs for nowaitpaydayloans.co.uk.]

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2 thoughts on “Tips to Keep Family Finances in Great Shape

  • April 22, 2012 at 6:52 pm
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    Great tips, I think the one you said spend on nessacary items first is the best. We are often guilty of getting a treat. However not saying that is wrong but when watching pennies, maybe the park can be your treat.

    Reply

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