Detty December has come and gone. A new year is upon us. The pandemic still lurks around, and we may go on another lockdown. Regardless, we are hopeful for things to get better. A lot has to be done to pull through hard times. So today, we are gisting about Family Budget. No doubt, food is one of the major things people are spending more on than they did before. Budgeting during a pandemic or time of crisis is essential to ensure that you and your family are well-prepared while maintaining cash flow to stay afloat. These tips are helpful to survive these harsh times.
Avoid accidental overspending
It is a significant step in money management and being debt-free. The time isn't right to spend on your wants. Focus on your everyday essentials, medical services, unexpected expenses and emergencies. Having total control of finance makes you worry-free of finance. And it gives you the leverage to enjoy life with your loved ones.
Spend less than you earn
The new year is a perfect time to review the previous year expenses. It will help you understand your spending habit better. Your bank statement and credit card will guide you towards making financial decisions. Remember, the aim is to spend what is remaining after saving/investing.
Keep track of Every spend
In the beginning, it may seem hard. Regardless, keeping track of your budget tells you when you are spending more or less than you earn. Print your monthly statement and review. In a scenario where you spent more, discuss with your family and adjust where it deems necessary.
Save to Achieve your Dreams
The excitement when we realise our annual dreams is unexplainable. Write them down, plan ahead and set reminders to keep you on track, then save! It takes a lot of hard work getting into the habit of saving. Be it vacation, car or house, saving for a dream helps you prioritise and budget better.
Involve the kids
While schools are yet to resume fully because of the pandemic, teach the kids how to manage especially during a difficult time, teach them money management. The best way to get them involved in the family budget is to let them be part of it. Explain the need for a family budget and show them what it means to manage money. These help them to understand finance and make decisive decisions in future.
The year just got started! Make it a priority to plan well. You could begin on the right foot with these tips. Have you made a yearly budget? Share your view on it.
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