Family Budgeting: Strategies for Managing Your Finances

Would you like to learn more about personal finance, but the topic of finance is so broad that you don’t know where to start? I was at this point too, and it took me months to organize my finances and establish certain rules that stay with me every day.

I want to share with all my readers some of the pillars of personal finance, which we must all comply with, all this, duly verified by an economist friend who advises me on the subject currently. 

Do you know what the most important rule of personal finance is? 

Don’t spend more than you earn,  it doesn’t matter if you have a low or high income, you earn $500, $2000 or $10,000 a month, if you spend more than you earn, you are in financial trouble. Going into debt and living beyond your means makes you poor over time.

Are you complying with all of this? Prepare your family budget and calculate your net worth. If you don’t spend more than your income allows, you won’t fall into financial trouble.

Is it that simple? Actually, yes, but it turns out that many times we forget about this and start making impulse purchases, either because of an ad, or because we want to live a lifestyle that is not within our reach.

Savings: A fundamental part of the goal

Save some of your income. We’ve all heard it, try to save at least 10% of what you earn. But there’s more. Saving, for saving’s sake, is not something that motivates us, therefore, many people prefer to use their money here and now, rather than hoarding it for an unknown future.

The difference is when you set specific goals for your savings:

• Build a house.

• Buy a computer.

• Saving for my children’s education.

• Saving for retirement, etc.

The reasons are diverse, and if it’s something important to you, they’ll encourage you to keep saving. So, set your goal, and when it’s a big goal, like building a house, break it down into smaller stages. 

Good communication and agreements with your partner

Good communication not only helps you have healthy finances, but it also helps you have a longer-lasting relationship. I know that touching on the subject of money can be delicate, it arouses emotions, but it is something that has to be done.

You have to win over your partner, encourage them to want to improve the situation as well. It’s easier when you’re both fighting for the same goal.  Once you have your partner on your side and willing to work with you. 

This is a great time to budget together, review what you need to improve, what progress you’ve made, and set new financial goals for the future.

Avoid Consumer Debt

Have you heard that the debt of unbridled consumerism is your biggest enemy when it comes to financial security and freedom? I often suggest that you avoid consumer debt at all costs and learn to trust your available money.

This means:

• Don’t use limits on credit cards.

• Don’t buy things in installments.

• Don’t borrow money from family, friends, etc.

It will also help to keep a budget for this. If you know how to manage your money well, you don’t need to go into debt. We are sold that only with debt can we get the objects we so desire. 

And one of the reasons we believe this is because we are impatient, our mind tells us:

• I want to have this now, that’s the only way I’m going to make him happy.

• I’m not willing to wait until I save the money, I want it now.

• If I didn’t buy it on credit, I’ll never have it, I know myself and I know I’m not good at saving.

Always seek to learn about Finance

Let’s face it, in school, college, university  we are taught little or nothing about Personal Finance.

That’s why there are so many people spending as if the morning didn’t exist, waiting for the government to solve their problems, or just making the excuse that I’m poor but happy, or I’m poor and I’m going to die.

Working to improve finances doesn’t mean enjoying life less, being unhappy, or living in misery. To have healthy finances is to have peace of mind, to seek continuous improvement and to meet the goals you have. 

Final Thoughts

It doesn’t matter if you currently earn a little or a lot, whether you have a college degree or not. If you don’t learn to manage the little, don’t think that you will be able to manage money well, when it comes to large amounts.

Now there are many blogs and channels about finance, and it is something that we must take advantage of nowadays, as an initial reference, you can go to idealmortgageloans.com; where you will find a lot of information on this topic. So get started if you haven’t already, before it’s too late!