Family Financial Planning Part 4

I am back! Happy Tuesday! By now you should start to get a pretty good idea on what steps to take to identify expenses that are impacting your family budget. In the last few posts I shared some very specific items that should be looked at, documented and certainly discussed by the entire family especially where there are shared responsibilities.

Before I outline additional areas that dollars could be lost in; I want to acknowledge you for your efforts so far. Give yourself a pat on the back!

Next I will highlight, how these areas can help you start putting aside some cash for a major financial commitment.

Be back to you!

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Family Budget Planning Part 3

Happy Monday! Glad your back and continuing to stay with us on the Family Budget Series. In this post of the series, I will outline what is needed to examine what your own family budget looks like and/or how to get one going so that spending can come into focus as a family commitment. Finding out what is the take-home pay is a crucial element in this area. Take-home pay is what is left when you look at your pay stub, pay receipt or a direct deposit attachment where all deductions are itemized and the "NET" amount is what the value of your pay check.

This impacts the family and they need to be involved! - "The Take-Pay and the expenses tied to it could include other family members". This could be one member or ALL members. Getting them involved in a clear discussion about how the
ENTIRE family must support goals and expenses with acceptance is vital to having a healthy structure.

Ask yourself and the entire family -
"Where does our money go? Where are we spending our family pay? What can we cut out or do without once a month or twice a month?

Here is a list of things most household's have: Take a realistic eye at this and ask yourself what am I spending on these items and what can my entire family help with in getting a grip on expenses.

Necessities like food
􀂃 Clothes laundry dry-cleaning
􀂃 Car and transportation expenses: gas, oil, parking, license, plates, car repair, train fare or bus
fare
􀂃 Rent, mortgage payments, heat, electricity, phone, water, property taxes, house repair,
appliance and repair, furniture, small items for home, cleaning supplies on the yard care,
􀂃 Medical and dental expenses: doctor, dentist, drugs, hospital or clinic.
􀂃 Savings: short to medium term for something soon, a future purchase, emergencies,
investments.
􀂃 Installment payments: car, furniture, appliances, charge accounts, credit card accounts, loans.
􀂃 Pocket money, personal allowances, tobacco, beer, wine and hair care.
􀂃 Entertainment, movies and eating out Recreation, sports and equipment, club

This is just a basic list, but it should get your mind moving!!!

On my way to meet an entire family who is seeking credit clean-up help and are believing for a new home!

Have a fantastic day!

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Family Budget Planning Cont'd

So, yesterday we took a close look at what it is to have and create a budget. I shared what is needed to identify the main "Obligations" that should be in the paramount in getting grounded in budget planning. A lot of my friends I have seen struggle with budget planning and it's not just the my single friends but my married ones with children. It took me years to get acquainted with creating and managing a budget. I must admit, it can be painful, but the more you work at - the better it will be, and you will discover you really have more money than you thought. So, let's outline it.

STEP 1: Figure out your true take home pay

STEP 2: Figure out your expenses

STEP 3: Figure out what you spend on "each" expense

STEP 4: Do the match up. Does your spending on each expense go over the take home?

STEP 5: Balance it. Does the expenses need to be there? Can you live without Starbucks 3 days out of the 5 days in your work week? If Christopher is in Little League next month and you need $150 for his uniform and camp - can you budget for that this month - by saving for it? Instead of emergency reckless spending the day before the Registration?

In my next post, I will outline how to structure each step. Family budgeting will save your life, your sanity and your ability to live some - if you take it to heart.

My team and I work with families seeking to buy a home and alot of time, this very same exercise is what gets them in the home when they thought they couldn't afford to become a Homeowner!

If homeownership is something you desire - you can do it! If you just want more peace of mind - you are always in control - Remember that!

Have a wonderful weekend!

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Building a Family Budget in 2012

I often get asked when I meet with clients - do people really use budgets anymore? Are they even relevant in today's society? The answer is absolutely - YES! A budget is still important, it works and can save a family or individual some stress on many levels. For the next few weeks, I will highlight budget structures that will help people identify ways to save and get a "grip" on family finances. I hope my readers, current clients and potential clients find it helpful and refreshing.

TRUTH: The average household spends approximately $500 over their income every month!

Why: Most families have obligations that never quite get in the budget like utilities, cell phone bills, trips to Starbucks, and birthday or special events. These kinds of expenses always push the money coming in over the top!

TIP: Catagorize spending even down to the dime - TRY this! Build a list under Obligations, such as the example below.

1) Obligations – list each item under headings like: home: mortgage or rent; association fees
and professional dues; insurance: health, auto, home, renters’ and life; tuition, day care;
loans: car loan, student loan, bank fees and interest; taxes, property taxes, etc.

By doing this - you get a very QUICK glimpse on where the BIG money is alotted.

Next: I will cover the next catagory to use in building your family budget.

Happy Friday! Have a blessed weekend!

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