In looking at money management in the home there is a principle that many know but do not apply and this is the principle of running a family budget.
A budget is simply a financial plan that outlines how monies (receivables) will be spent. Various sums of money are allocated to areas based on priority. It must be emphasized that a budget cannot be governed by what one wants but what is needful.
Every couple that wants to enjoy financial freedom but form the habit of budgeting for their expenses on a monthly basis. From my experience I have discovered that you then to overspend if you spend impulsively without a well thought out and articulate plan.
Lets us look closely as the benefits of a family budget.
1. It helps you to see on a broad basis if your present income is capable of meeting your needs. This is important because you want to avoid the situation where you have to borrow money to meet your needs. Borrowing puts you in bondage and everyone needs to escape the debt trap.
2. Secondly, it helps you to attend to the things that are most important to your life first before other things like luxurious items or pleasure
3. It enables you to avoid impulse spending, a propensity that you and I have. Every time money comes into ones hands there is always that lure to want to begin to buy the things that are attractive to the eyes. I have noticed that it is when I have a lot of money at hand that I want to indulge myself in some pleasure spending.
4. It help you to discipline yourself financially. With a budget you are constrained to cut your cut not according to your size but according to your cloth. You learn to do the things that are most important and leave the rest. Once you are able to discipline yourself in how you spend money then it is easy to discipline yourself in many other areas.
In developing a monthly budget, the couple must seat down together to outline their expenses and draw up a list that will be followed. A typical monthly budget will be something like this:-
1. Feeding - $300.00
2. Rent (Apartment) - $250.00
3. Utilities - $100.00
4. Soap, detergents etc - $50.00
5. Fuel and lubricants - $100.00
6. School fees /Educational expenses - $200.00
7. Transportation - $120.00
8. Tithe/Offerings - $200.00
9. Pocket money - $300.00
10. Savings - $200.00
Note the figures used here are arbitrary and will depend on what is of priority to the couples concerned. The important thing is that the couple must agree on what they want to do and must have the will to stick to their plan as much as possible.
Initially you may not be able to follow through 100% but with persistence you will master the act and perfect the scheme together. The idea is that you don't spend money on trivialities only to find out later that you need money to do something that is important.
More next time
God bless.
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