SolveYourProblem
Article Series: Budgeting Tips & Advice
Help Me To Create a Budget, Save Money,
...and Stick To It!
Family
Budgeting: It's Purpose and Goal
The
purpose and goal of family budgeting is:
- financial
situational analysis and informed awareness,
- cutting
costs,
- gaining
control or curbing spending and
- starting
to save, building up wealth and liquid assets over time.
There
are many phases and steps to go through when creating a budget.
If
you are looking for ways to manage your money better, making
it reach and stretch further, and providing you with financial
security and a more solid future, then you have come to the
right place.
For most people, a family
budget is the equivalent of a simplistic process: money
is earned and comes in; money is spent and moves out!
It
is a fluid, easy-flow, one-directional, cash management process.
It is driven by daily life, a spending-orientation, or no
plan at all.
For
most families, income is also fixed and outflow typically
increases over time, as the needs of the family fluctuates
and changes. Loading up on debt is also very typical for
the majority of our families. If this sounds very much like
a vicious circle, it is. Most families are caught up in it
and constantly battle to get out.
Mostly,
we think that we wisely spend our money on necessities like
food and clothing, gas and household or family needs, but
can rarely put a finger on where the money actually goes,
let alone produce a budget.
A
good place to start is to monitor these expenses.
Take
stock of your fiscal situation. Start with assessing where
exactly you are in your financial life and circumstance.
Most of us think we know, but we really do not.
That
is, until we take the time to actually list, study and analyze
the situation. Figure out what your financial worth is, look
at all financial goals, and set a timeline for reaching them.
Does this sound like an action plan? Where do you start?
A
good suggestion is your bank statements, tax return and recent
current credit report – a financial asset statement if you
will -and an overview of the current situation.
The
premise is simple: you can not arrive where you want
to be if you do not know where you are today. What it will
take to get where you need to be? How do you get there?
A
well thought out, planned and realistic budget will serve
as a roadmap to get you there. It is a financial tool facilitating
your financial dreams, goals and aspirations, making them
become a reality. Budgeting will enable you to actually reach
your financial targets and set goals.
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by SolveYourProblem.com : 2008
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