Process Elements of a Family Budget
Some of the most important process elements and content pieces of family budgeting to read more about, study, learn and practice, hone and refine are:
- A fundamental understanding of the principles, merits and mechanics of budgeting and the budgeting process itself. All the process steps to get your through the journey and to the resulting document, tool or magic numbers!
- Distinguish between fixed, variable and discretional expenditure(s)
- Identify and categorize all expenses, breaking them into categories and line items, time-frames, other detailed sub-classifications and clustering;
- How to set-up housekeeping budgets and what to consider
- Identifying hidden expenses
- Identifying areas of discretionary spending, habits and perhaps over-spending risk areas
- Setting up expenditure recording systems
- Decide on the best way suitable for you and your family to monitor what you spend
- Set-up a very basic Home/Personal Budget Filing System
- Any calculations, formulas and budget principles you think will help you maximize and optimize your cash flow and money-management
Another great way to learn about family budgeting is to ask around and to learn from others. With the internet at our disposal, there are numerous reliable sources of practical, tried, tested and true tips, strategies and techniques to follow. We selected but a few to provide a sample. Never underestimate the power of a shared experience!
Sometimes exploring a financial activity like family budgeting conceptually is not enough. Getting a practical perspective, with some hands-on tips can be more meaningful that a close description or analysis.
There are lots of definitions, opinions and numerous books have been written on the subject of budgeting for families, by families and others. In our information-age, knowledge is power these days and lots of parents and professionals share and voice their opinions openly on the internet, sharing and growing the body of knowledge. We selected a few examples to encourage others to explore these at their leisure as well.
Here are ELEVEN more practical suggestions and tips from online users posted on the internet on family budgeting:
1. Keep a record book as well as your bankbook
It takes time and requires a lot of self-discipline. Start each month with the balance and enter every payment, etc in advance, in the form of a calendar. It works well for most people due to the fact that they always have their actual working balance handy. Remember the comment about having your financial information at your fingertips? Here is a sure-fire way to get you on that path quickly.
2. Calendar Calculations
Putting regular bills on a calendar based on due dates and when salaries are received proves helpful to some. This helps specifically to get everything paid on time and keep in perspective where the money actually goes, since all miscellaneous expenses are also recorded.
3. Getting bills paid
Working out all the major and large bills (i.e., rent, car payment, insurance, etc.), dividing it up so every week, that amount is removed from the family ‘paycheck’. Therefore, at the end of the month, there is need or risk to lose an entire paycheck to rent or car registration.