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Family budget and smarter savings: Your guide is here

Family 14 Feb 2021
Opinion
family budget
Photo by Pixabay from Pexels

Managing money in the family is actually a very difficult task. Due to which many people go to do it and fall in trouble. In a middle-income household, spending well on one sector leaves no money for another. It is often seen that the salary is almost exhausted before the middle of the month. And in such a situation, saving money for the future is just a fantasy. To avoid such a situation, make a family budget at the beginning of the year or month. This budget will help you to balance your income with your expenses and also help you to save money for the future.

In order to manage the household expenses well and be economical in different sectors, some methods have to be adopted from the beginning of the month. And you have to plan a separate family budget for the whole year at the beginning of the year. Since the overall economic condition of the country also affects our daily life. The prices of essential commodities also continue to rise day by day. That is why we have to be frugal. You have to plan at the beginning of the month to save money by meeting the expenses of the family. It will meet the demand as well as build some savings.

Family budget at the beginning of the month

First of all, find out the possible income of the family, the tastes and needs of the family members. Make a draft list of costs accordingly. Separate the money allocated for each sector at the beginning of the month. Because monthly expenses are never the same. For the sector for which no money was spent, save it at the end of the month. Make some changes in your eating habits. Make family members interested in eating vegetables instead of just relying on fish and meat. This will make it easier to do everything within the budget. In the case of education, of course, there is no calculation. But be frugal in other matters related to education.

Be reasonable in your family budget

Allocate money in advance for treatment. In particular, if there is a sick patient or elderly person in the family, keep a separate section for them. It is often seen that we buy a dress as soon as we like it. Instead, buy the necessary clothing. Also be aware of the use of mobile phones, electricity, gas, and water. It will reduce waste and also will save money. Do a few days of shopping together instead of a small market. Because buying things together saves money.

Save for the future

Save a little money every month for future expenses. Everyone needs to save something for future security and financial well-being. If you can’t save too much at first, start small. Gradually increase your savings without increasing your standard of living as your income increases.

Seasonal expenses

When creating an annual budget, keep a separate sector in the budget for seasonal expenditure. Spend your child’s school uniforms, books, new shoes, Eid-Ramadan expenses, or the cost of a sudden dinner party from that sector.

Take time for big shopping

You need to buy new furniture or something big. But that doesn’t mean you should buy something new the day you think of it. Check prices with a couple of stores, search online, consult with friends and family to make a decision. It will take a little more time but it will definitely reduce your costs a lot.

Make a fixed deposit

It doesn’t matter how much money you keep, it depends on whether you are saving a certain amount of money. It will be very useful in any time of need. So keep a separate budget for fixed deposits every month.

Repay the loan

It is often seen that we borrow money from friends or relatives due to the depletion of salary. No matter where you borrow, try to repay it early next month. As soon as you get the salary, repay all the loan money. It will have the loyalty of the people towards you which will be very helpful in times of need.

Budget implementation

Creating a budget is relatively easy, but it is difficult to fully comply with it. So be a little strict in implementing the budget. Reward yourself somehow the next month if you can save some money by adhering to one month’s budget well. It

may be that you add something of your choice to next month’s budget. It will also implement the budget and at the same time fulfill your hobbies.

In this way, a successful budget can bring financial savings as well as financial solvency.