Priorities Bring Focus to Family Budgeting

Please note it is your responsibility to evaluate the accuracy, completeness and usefulness of any information, opinion or advice contained in the content below.

Priorities Bring Focus to Family Budgeting

Money is an important part of any family’s life and many times family peace and cohesiveness are threatened by the lack of a sound financial plan that has little or no direction. Often times, the family budget is a source of conflict. Most of the time, the major earner makes the final financial decision, which isn’t always a welcome deal for the rest. Since money is such an intrinsic part of family life, families need to achieve accord in this aspect. There is a four-step cycle in budgeting the family money to maintain peace and harmony.

1. Set your priorities.

Priorities are different from goals. They are aspects in your family’s life that you, as a family, want to set focus on, say health or children’s future. While goals are specific targets that support priorities.

In setting priorities, do not set too many as it defeats the purpose. Ideally, there should only be one, but because life is not ideal, 2 to 3 are reasonable.

As the priorities are set and agreed upon, write them down. Post the paper where everybody can see them to remind them of what your family is focused on for the next few years.

2. List down your goals.

Once the family has set and agreed on priorities, the next step is to set the goals. Goals are specific and measurable conditions that, when achieved, will support the priorities.

In setting goals, establish a target that is both challenging yet achievable. A 10-15% of the family’s income is a good savings target for a child’s future education: stretching yet reachable.

Try to limit your family into setting 1-2 goals per priority, to maintain focus.

3. Work towards your goals.

After setting your priorities and goals, start living by them. All of the family’s activities will be geared towards working at your goals. Track progress, particularly on financial goals, by using an income and expense-tracking tool. The simplest way is to get a notebook and list down all expenses and incomes and set a budget for future spending. There are those that invest in computer software or a family accountant. Whatever it is, the important thing is to have a system of monitoring the family’s performance towards achieving their goals.

4. Evaluate your family life.

At a certain point in time, when you feel like it’s time to evaluate your life, check how your family is doing against the goals. Goals that have been achieved can be checked off the list, and new ones can be formulated.

At times, in major changes, say a career move, or when a family member goes away, it may be time to re-evaluate priorities. When such a time comes, then the cycle begins, just like what it’s for: life!

Saving Money on a Vegan Diet - Associated Content

2 Sep 2010 at 10:48am
sticking to a budget should not compromise a person's life choices. Following the old proverb, "Money grows on the tree of patience.", hence here are my top twenty methods of saving money to stick to my principles ...

Frugal Facts: Best Blogs for Saving Money, Vol. 3 - Associated Content

1 Sep 2010 at 1:55pm
In addition to a great array of budgeting templates, the site has blogs on insurance, budgets, investing and saving. As it's a Christian Web site, there is also a section dealing with the Bible and money ...

Teens pass fashion test on a budget - Pittsburgh Tribune-Review

2 Sep 2010 at 2:37pm
And budget extra time to find that special item ... Ali Morelli of Greensburg Spending money on college meant saving money elsewhere for Ali Morelli. "After getting accepted to Duquesne University, I knew my frequent ...

Barbour mulling saving, not spending, stimulus money - Mississippi Business J...

1 Sep 2010 at 7:43am
JACKSON ? Republican Gov. Haley Barbour and a bipartisan group of Mississippi lawmakers are considering saving, rather than spending, one of the two pots of federal stimulus money Congress recently ...

Bank Deposits Drop as Greeks Use Savings Amid Crisis - BusinessWeek

2 Sep 2010 at 4:00am
... savings to meet living expenses after her income declined amid the country?s debt crisis. ?I use the money that I have in ... rein in the European Union?s second-biggest budget deficit, which ballooned to ...

Tagged:

Budgeting, family, money, rent, Spending

Free Newsletter

Sign up for the free Daily newsletter, filled with tips and ideas on avoiding credit card debt, credit history, tips on getting out of credit card debt, and more. Your email address will be kept confidential and won't be shared. Easily unsubscribe at any time.

If you enjoy the free information available on this site, you're sure to enjoy the free newsletter as well:

Share and Enjoy:

October 17 2008 07:17 am | Household Budget

Trackback URI | Comments RSS

No Debt Anymore .org

Advice on credit repair, credit reports and debt solutions