5 reasons to keep a family and personal budget

We often meet the popular opinion that keeping a family and personal budget is not only boring, but also useless for financial growth. Or there is an objection that there is nothing to keep, all the money is spent end-to - end (although there is no understanding where), there will be more money-then you should start counting. With this approach, you risk not starting to count it at all.

Because if you do not count your money and do not understand where it goes, you can spend any money, no matter how the income grows.

We want to dispel all these myths and give the 5 most important reasons why to keep a family and personal budget.

Reason 1. The growth of welfare.

The most important reason to maintain a family budget is, of course, its replenishment, and, as the main step - the growth of your financial well-being. As we mentioned above, calculating your family or personal budget directly affects your well-being. Just in this case, your income has a chance to grow, because you count your expenses, plan your spending and combine it all in a single budget.

Reason 2. Reasonable savings = plus to your budget.

If you are running a family budget, you can see opportunities in your budget - where you could save money without losing comfort (plan ahead or read forums for finding a good product or budget travel). Do not overpay, because you could leave, buy or pay for services at a much cheaper price.

The best example here is vacation, travel, because if you study the relevant blogs and forums of travelers, you can save a tidy sum. This kind of planning is exactly what you need to put in your family and personal budget.

Reason 3. You don't overpay for risks.

When you consider your personal budget, you insure yourself against risks, which means that you protect your money from unexpected spending. Most of the situations that you can get into, you can put in the family or personal budget and provide for this in a separate article, the "insurance Fund". We are often told that it is not possible to postpone because of unexpected expenses such as a breakdown of equipment, a car, or, say, the need to repair an apartment.

All this should be provided for and set aside some part of the amount of the cost of all these things. All these risks do not come true at the same time. Therefore, if you budget at least part of the amount, you will also save a decent amount, and do not run for an urgent loan.

Reason 4. You feel psychologically calmer and more confident.

This is one of the main reasons to keep a personal and family budget. Many of our students admit that at first, when they started counting their budget, they faced fear, fear of the unknown. This happens when you are not in control of the situation and your body, your brain, does not have an appropriate plan at hand and does not understand how to respond to a particular situation.

We live in a constantly changing world and if you do not understand and most importantly do not understand your current financial situation and financial situation, you can not take the next step. As we have already said, constant income growth will not help here. If you are used to spending everything, closing your eyes to where the money goes, then as your income increases, you will repeat the same thing, just your appetites will increase.

Perhaps if you calculate your budget and find items that can be cut, you will not have to work several times more to buy a particular item. You need to raise your income, but this doesn't stop you from working on your budget.

Reason 5. Maintaining a family budget brings the family together.

Yes, it is. There is no dispute about money, where it is, who spent it and where. Your family has a clear plan for the week, month, and year, and each family member understands where the money goes and where it comes from. When everyone in the family begins to talk openly about money, together plan spending and include in the family budget the necessary articles for all family members, the ground for quarrels on the subject of money is no longer there.

If you connect your children to managing the family budget, you can explain to them how money is earned, how spending is planned, and where the money goes. The main thing is that children are already at school age, able to read and write, otherwise it is too early to include them in the help of maintaining the family budget.

These were our 5 reasons to run a family or personal budget. We are often asked what to do when personal finances are at a standstill, how much you spend - how much you earn.
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