Page 44 - How To Set Up a Family Budget The Easy Way

recreation, sports and other leisure activities will be another category to find some budget
dollars.

Maintenance and repair costs might be suspended or delayed, cost-cutting is never pleasant but
the budgeting process makes it easier to know where the cushions and ‘fat’ is that can be
trimmed or eaten away at, without risking heart and limb!

Other positive job-changes like promotions and relocations could also have a lot of impact.
Taxes, relocation fees, buy-and-sell of homes, settling allowances, insurance, storage etc. they all
add up. The family budget will help you assess your situation more clearly, leading to better

decision-making and informed empowered choice.

Any discussion on ‘How to set up a family budget’, will be incomplete without a section

dealing with debt and debt consolidation

Normally we use credit cards for a variety of good reasons, like convenience, business expenses,

online commerce, instant accountability, unexpected bargains or expenses, medical and or other
emergencies.

There are however, also very definite situations where plunging yourself deeper into debt is not a
good idea at all:

 An expensive item you know you cannot afford (indulgence shopping). If you do not
have the cash funds to purchase it, charging it is not going to make it easier for you to pay
it! By putting it on plastic you just racked up the price and interest charges. Your budget

will not thank you later for this one. Bad decisions often lead us down the wrong path.
You will be left facing paying for this choice for a couple of years down the road still.
 Tele shopping or infomercials for gadgets and widgets.

 When grocery shopping, pay cash rather than plastic, or you will most likely overspend.
 Meals, drinks, nights out and other entertainment charges are all like the miscellaneous
category in a budget. The balance and dues will just keep on piling up, if it is not tracked
and monitored closely

 If you are truly going to be budget-minded and money conscious while trying to get out
of debt, consolidating or in debt-repair avoid the plastic!
 Check the interest rates on your card, consolidate accounts, go through the exercise of

44