Thursday, December 14

5 Tips For Taking Control Of Your Budget And Having A Richer Family Life

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5 Tips For Taking Control Of Your Personal Budget And Having A Richer Family Life

In today’s economy it is important that you know what you are spending your hard earned money on now more then ever. The following tips will help you discover where your family’s money is going and how you can spend it more wisely.

Tip 1: For one month everyone in your family must keep a log and document every penny that they spend. I know what you are thinking! That sounds like a lot of work but you would be surprise how much money those multitude of little purchases can add up to. After the month is over everyone must honestly show what they spent for the month. This is also the time to reflect on all those purchases and really evaluate which items were needs and which items were things that you could easily have done without. You will be surprise how much that daily coffee and lunch out is costing you.

Tip 2: The next step is to get your checkbook register out and total all the items that you have paid for by check for a one year period. This would include your mortgage, home taxes, rent, utilities, etc. After you total all the money spent by check in a year, and multiplied the monthly log by 12 add these numbers together. This total would become your yearly budget. Once you have that total then divide it by 12. This total is the amount that you are spending each month.

Tip 3: You can easily make this into a game with yourself and your children and also teach them a valuable lesson about being responsible with their money. Each member is allotted a certain amount of money, based on their needs for the month. The family member who sticks to their budget may chose the next outing or dining destination for the month.

Tip 4: Teach your children that many things that bring joy and enrich their lives do not always involve money. The family outing for the month could be packing a lunch and going to a park or a nature trail and just being together.

Tip 5: Look around your community and see what it has to offer. There is the local library which offers internet services, DVD movies and of course book for no charge. Volunteer within your community and make a different.

There are many valuable lessons that can be learned in hard times like these but the most important one is that something are priceless such as the time we spend with loved ones.

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