Page 43 - How To Set Up a Family Budget The Easy Way
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Making an active effort to participate in the family budgeting process will carry its own rewards
as well. Self-discipline and curbing your own spending will soon become second nature almost.
Enable families to make large spending reductions in the right places at the
appropriate times
Anything from a small rent increase of a couple of dollars to an all-out job-loss can impact home
life and finances, and not in a positive sense. The family budget offers you the opportunity to
prepare somewhat for this, whether pro-active or responsive action follow. Flexibility and
adaptability are bonuses with family budgeting.
It will spell out the reality, damage, impact, what needs to be done at the barest of minimums to
get by and offer stop-gap solutions, practical and accessible, right away. It is not to say that it
will have you not worrying about it! All of us will be concerned if this is our situation, but it will
leave you more prepared to deals with the challenges head on and right away as opposed to
wasting time wondering what to do and how bad it is.
Protect against income reduction and inevitabilities
In the case of job loss mentioned above there are also immediate realities to consider. Financial
implications are huge for family life and the pressure is on. Family budgets and informed
budgeted will tell you that this tool and time spent will be worth every penny if this were ever to
happen to them.
Because of the heightened awareness and familiarity with the context and content of the financial,
spending and cost cutting plans and strategies, goals and savings, the family budget process and
product now offer avenues to solutions rather than barriers of debt and no point of return.
Tackling normal spending categories first, reduced transportation costs, packing a lunch as
opposed to having it in the cafeteria every day. Suspend all discretionary funding, move money
in your accounts around to ensure liquid assets to cover basic expenses. Luxury items and
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