How To Use A Family Budget 2
- 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
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 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.
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Guide : Debt Consolidation Within A Family Budget