Household Budget | Simple Ways to Make It Work!
The truth is that budgeting is an endurance event. If you stick with your household budget, through thick and thin, you will come out ahead financially…you will a steady, measurable progress towards the financial goals that really matter to you.
To make your household budget work, you need to understand that budgeting is not just about limiting spending and living a cheapskate life. But it’s about insights, wisdom, informed decisions, action and sustained discipline when it comes to managing your household finances.
Here are simple ways to follow that will help you stick with your budget:
- Develop a greater awareness of how you earn, manage, save and spend your money.
- Be aware of how others would lure, entice and want you to spend your money (advertisers, retailers, and manufacturers).
- Do not envy others and lust after things that they might have or even worse, get deeper into debt to compete or keep up appearances. It is counterproductive and can ruin your financial life.
- Set solid and realistic financial and budget goals for yourself and your family that you can work on individually and collectively to achieve them.
- Understand your household income – know where the money is coming from and how it varies throughout a one-year cycle.
- Understand your household expenses – monthly, irregular and unexpected expenses.
- Know your own habits, spending, temptation, and where the areas of risk and exposure are.
- Set up savings and spending mechanisms that work.
- Plan your necessities and look for ways to economize.
- Set aside pocket money for daily incidentals.
- Create a family allowance to cover entertainment.
- Set spending limits and stick to them.
- Delay purchases. Find out if you can improvise or find alternatives.
- Celebrate when you have money left over at the end of the month. Indulge a little and reward yourself – rewarding patience and persistence! Not just the doing good and sticking with it.
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