Page 41 - How To Set Up a Family Budget The Easy Way

HOW SHOULD A FAMILY BUDGET BE USED

This question immediately suggests that it should be part of the whole family budgeting process.

It is much part of the learning around setting it up, considering its usefulness, function and
purpose.

Creating or setting up the budget is one thing. Sticking to it, effectively implementing, sustaining

and if actual fact, in essence ‘using’ it is the ultimate goal and achievement. That is worth
celebrating. Families have different ways again to use or refer to their family budgets.

For some it will be no more than a general guideline. For others it would constitute an absolute
rule not to be bent or broken. Others still will use the family budget as a strategic planning tool to
protect the interests of his/her family and plan for a full and happy life, setting a small amount
aside for the future, invested smartly and securely, with confidence and pride.

The very day the family budget actually assists you in reducing your spending and making
informed smart financial decisions that is the day you do not sit back and relax, but throw all

your energy back in making it even better. This is an on-going, continuous improvement exercise,
experiment and undertaking of your own making, design and creation!

The family budget can:

 Assist you in handling unforeseen increases in costs and unbudgeted expenses

It is very common to get discouraged when on the family budgeting path. The minute you feel

you have taken strides forward, something will happen, a setback, unexpected upset or expense,
breakdown, maintenance or replacement or car, appliance, major purchase or repair and many
other setbacks will occur.

In a sense it makes families more robust, responsive and adaptable. Tracking your finances
makes you aware of patterns and business cycles, cost and many other factors that affect hearth
and home financial life and health. Rent increases, more expensive cigarettes or tax increases,

higher gas or energy prices or increased mileage to and from work are but a few examples of
these events and issues that might come up.

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