Is family budget planning important? When is the last time you sit down with your whole family for a budget meeting?
Let us take a look at the reasons why family budget planning is important.
Family budget planning is the key to a happy family life.
You cannot enjoy a happy family life if everyone is fighting over money problems.
You will definitely lose your temper if you save every penny to pay off the debt, and your daughter cries for a toy.
When you hold a family budget planning meeting, you are educating your family.
You want their commitment.
You tell them how highthe bills are. You show them the historical record of utility bills, and let them see the upward trend of the bills.
You tell them that you want a commitment from everyone to save on electricity and water.
Your children will outdo each other for ways to save money.
That is the way you can get commitment from everyone in a family budget planning meeting.
A family budget planning meeting provides the best way to teach everyone about debt, savings and investment.
You need money to pay off debt. You need to save up for rainy days. You can invest only when you have savings.
The problem is that income is fixed. It is hard to make more money each month.
Since you have a fixed amount every month, you need to budget to pay off debts, and still have enough money for investment.
That is the lesson that everyone has to learn.
4. Large expenditure
If there is a need to buy new car, since the old car has engine problem, you can bring out in
Everyone has to know where the money goes to. They have to know that large expenditure means months of saving.
They have to know that buying big item is different from buying small items.
After all, big ticket item means more debt, and it takes years to pay off the auto loan.
A family budget planning session is forward looking.
That means you are not just helping the family to survive from day to day, you are helping them to prepare for the future.
The future means a fat retirement nest for you and your spouse. The future means money for the kids to attend college. The future means taking care of ageing parents, and helping them pay off large medical bills.
The future is not that far away.
A family budget planning session has to take into consideration the dreams of everyone, and the future needs of everyone.
Scheng1 is a passionate blogger from Singapore. Rich in every sense reveals my deep desire in enjoying life, and be rich in every possible ways.