Financial responsibility is an increasingly important topic in everyday life for all people. Even though debts and lack of discipline are not new subjects, they are always current and renewed over the years. Therefore, learning how to make a family budget is essential for anyone, be it a single person living alone, a new couple or even one already having children.
Of course, the theme is deeper than it looks. There are many things you can and should do to improve your family’s finances, both in the short and long term. It’s not just a matter of cutting off a little bit of light though that’s important. It involves a concerted effort so that everyone can enjoy the holidays, eat out once in a while and not have to go through choking in an emergency.
The question here is how to achieve this purpose. If it were that easy, no one would need that kind of advice, would it? Well, in fact, although it is a simple task, it requires a lot of knowledge. And if you plan to go to an advanced stage, such as family investments, you will need something more.
So we came to help you. Let’s talk a little bit about the importance of these finances, how you can take better care of your budget and what to do to raise your bottom line. Follow us!
The Importance of the Family Budget
I think we’ve made that clear from the start, but it’s always good to reinforce it. After all, many people forget to take care of their financial lives despite all the advice. To further emphasize this topic, we have brought some of the main reasons for taking care when managing this budget. Check out!
Ensure Stability in the Medium and Long Term
Even if you have a good job today and pay all your expenses, you never know what tomorrow will look like. Changes in the market, relocation within companies or more comprehensive crises can make your life a lot more difficult for a while. However, these scenarios are only the end of the world for those who do not prepare properly. With some planning, your family can get away from these hot flashes.
A classic example is his foresight. When old age comes, you will not want to depend too much on your children and grandchildren. It is always better to maintain autonomy. But for that, you need to plan your budget and set aside a percentage for that type of reservation. If you can do that now, surely your family will thank you in the future.
Establish Family Priorities
The first mistake that most people make when dealing with the family budget is just thinking about what is needed for today, whether they will have enough to cover some expenses, without thinking about what might happen in the future. Will you need this money to pay any bills later? Will the children need school supplies? Is it better to save for some medical expense? These are questions that should always be asked before buying a new TV or car, for example.
Talking with the rest of the family and setting priorities for the bills can get you rid of many headaches. Thus, you will always know that you’re important expenses are covered before you start to spend on perks such as restaurants, games, movies, etc. And, whenever anyone is in doubt, just check your list to get the answer.
Teach Your Children Financial Responsibilities
It is important to integrate all family members into the discussions. And with everyone we are also talking about children. They may not have the same knowledge or maturity to make responsible decisions with money yet, but it is never too early to teach them how to handle their finances better, even if that information is not used immediately.
In this scenario, you should make account administration something like a family meeting. Instead of sitting alone to think about how to cut expenses, talk to everyone around a table and discuss what each one can commit to doing. Small things like taking short baths and changing family outings for something cheaper have a significant impact on your budget. And as we have already mentioned, young people will learn important lessons about managing their own money when it is needed.
Reasons to have a Family Budget Worksheet
One of the most widely used methods of managing finances is the spreadsheet. Simply create an Excel document with three columns: one for entries, one for exits and one for the final value. The amounts in each are summed by the application formulas and you get the result.
Despite this, not everyone uses these resources in their favor, which is a big mistake. With something so practical at your disposal, not using this tool is a waste of energy. Still not convinced? Here are 3 good reasons to use a spreadsheet right now.
Control Inputs and Outputs
Yes, this is the main function of the tool: make sure you always know what you’ve spent and how much you still have available in your account. There are some spreadsheet variations that offer detailed data, such as changes in entries or expenses over that time. But this basic information is enough to deal with a simple family budget.
Without this record, you’ll probably spend more than you can without realizing it. Even if you can usually control your finances head-on without suffering damage, you never know when a digit will go wrong in your memory. And that usually costs dear. It is better to prevent yourself with a record sheet than to expect something to go wrong.
Share Important Information
The big difference between a family budget and an individual budget is that some people will need to check those numbers in addition to you. After all, your payment may not be the only source of income, and there are certainly other destinations for that money than yours. And the more people are involved, the more difficult it is to ensure that everyone has access to up-to-date data – at least through traditional methods. This is where one of the main functionalities of a virtual spreadsheet comes in: the sharing of data. With a file stored in the cloud, you can easily allow the whole family to check the numbers and make the necessary changes. The data will be updated immediately, which prevents anyone from using ordinary money without knowing if it will or will not be necessary for some other purpose. Whether for personal matters or to discuss budget, communication is essential.