Family budget is a way to manage your family’s income as a whole. Saving the family budget does not at all mean materially limiting yourself and your household members in all areas of life, this ability is thought out and use your funds correctly.
Let’s figure out how to correctly draw up a family budget. You should first familiarize yourself with the components of the family budget, since if you do not have basic knowledge, you will not be able to plan it correctly. So, the income of the family budget is formed from two main items:
- basic income;
- additional income.
The main income can be attributed, for example, the profit that is received at the main job by each of the family members. Additional income refers to the income that the family receives from additional work, part-time work, entrepreneurship, investments, or income from the property at the disposal of the family.
Finances already in your family budget are divided into several streams, in other words, into several expense items, these are:
- running costs;
- reserve fund;
- accumulation costs;
- development fund.
These names of expense items were obtained in accordance with their main goals. Let’s take a closer look at them. Current expenses are an expenditure part of the family budget that you spend. These include the costs of the essentials:
- Food;
- utility bills;
- inexpensive clothing, footwear;
- household chemicals;
- expenses for a car, gasoline;
- child expenses;
- loan payments and so on.
Savings expenses – this is the name of the part of the money that the family saves for more serious, expensive purposes, such as a summer vacation with the whole family, large purchases, and so on. The reserve fund is the money that you set aside for a rainy day, if such an item exists in your budget. A development fund is money that your family invests in the development of some sources of additional income, for example, in a family business.
You can analyze your family budget. For 3-4 months, carefully record all the income and expenses of your family in accordance with the structure indicated above, you can calculate approximately, some collect checks. Further, it will be seen how you can save your family budget, what expenses are unnecessary. This analysis is very useful if there is not enough income.
Now you know what the structure of the family budget consists of. How to save it correctly? We’ll give you some proven guidelines. Pay attention to them and use at least some of them that suit you best. By limiting your spending on small things, you will notice that you can save up for something more important. Note that the use of these simple saving techniques helps to reduce your items of expenditure by 10-25%.
- We advise you to first think about the possibilities for saving energy. Usually we do not control the cost of electricity, we turn a blind eye to a large number of household appliances connected to the network. But after all, you can partially refuse to use them, or, if there is no such possibility, at least you can try to gradually install energy-saving light bulbs throughout the house. The cost of light will be reduced by several times.
- If your family has a car, use it only if absolutely necessary. If you have the opportunity and time to walk to work, kindergarten, supermarket, do not be lazy, use it. Fresh air and physical activity will have a positive effect on your appearance and your wallet. But how nice it is to pamper yourself with a new little thing in your wardrobe, especially if it is one size smaller than the others.
- How long do you spend on phone calls? Review the tariff plans of mobile operators, they offer more affordable and favorable prices almost every season. Connect “Unlimited on-net”, “Favorite number” if you often talk with the same people for a long time. There is nothing to say about Skype.
- In no case do not deny yourself a rest. Get the whole family out to the movies, rollerblading, skiing, skating, swimming in the pool, and to save money, do it, if possible, on weekdays. Fewer customers during this time provide savings of 10-15%, as opposed to weekends.
In general, you can always find a place for reasonable savings. Your budget will only benefit from this, you will be able to allow yourself and your family a little joy. Of course, it is advisable to try to increase income at the same time in order to earn more. But, as experience shows, in terms of income and expenses. As income rises, so does the number of items you spend your budget on. Our advice will help those looking to make the best use of their available funds.