How To Make Family Finance Plan? | Home Budget | Personal Budget
Money problems affect us all, no matter how much or how little we have. That's why financial planning is so important. It's hard to think about the future when pay day is a week away and the checkbook is empty. You can make your money stretch further if you learn to manage it carefully.
Financial Planning : Where to begin?
You can make your money stretch if you:
- Know what you want to do with your money.
- Know where your money goes.
- Know how to keep your money longer.
- Know and keep within your credit limits
- Plan your spending in advance.
Decide What's Important To You?
Why do you spend your money the way you do? If ten people were given a $100 bill, they would most likely spend it in entirely different ways. Why? Because people are different and value different things. The deep rooted beliefs you have about what is desirable and good are known as values. Values grow from personal experiences. You have, and will continue to make choices based on your values. Values are not necessarily right or wrong; they express what is most important to you.
Families set goals based on their values. A major reason why many couples argue about money often involves differing values and goals between partners.
How To Talk About Money With Your Family
Preventing and overcoming money problems takes honest and open communication. It also takes some time and effort. Talking about money is hard. It means more than just discussing the amount of income, who's spending what, and how much things cost.
Think about money, what does it mean to you? To some it means power. To others it may mean security or status. Take some time and find out just what you and your spouse think about money.
Let's get your discussions started. Don't wait until a problem occurs, try to talk on a regular basis.
Also choose a place where you won't be interrupted. Here are some other tips to follow:
1.People in general, are more supportive of decisions when they have been involved by giving some input. Try taking the democratic approach; Include all family members, even children, in helping make decisions about money as a team. Let everyone have a chance to express their opinion. You will find that family members are more likely to be satisfied if they helped in making the decision.
2.Clearly identify the issue or concern. Just what is the problem? None of us are immune to problems. Some families may just have more or different ones. Is the problem spending too much money, spending at the wrong time, or spending on unnecessary or unimportant items? Financial problems are made more serious by certain addictive behaviors (ex: drugs, alcohol, gambling etc.) If you suspect this might be the cause of the problem, please seek help from a local counseling / mental health center or from a qualified professional. It is imperative that you start working to solve these kinds of problems as you also work on your financial ones.
3.Every family member should state his or her feelings, wants and needs freely. Others should not judge or criticize. Talk about the present. Try using "I" messages instead of saying "you always" or "you never." For example:" I get really upset when I find the gas tank is on empty whenever I go to drive the car."
4.Be sure to listen carefully to the other person. Let them know you understand what they said. For example: "Dad, you seemed upset when there was no gas in the car."
5.Be willing to negotiate for a realistic settlement of differences. Families must be ready to compromise. A verbal agreement is fine, but a written agreement may help even more to avoid conflicts. Example: When the gas tank gets to one quarter empty, the person driving is responsible for filling the tank.
Try This Activity
Read over the list below. Put a "1" beside the things that are MOST important to you. Put a "2" by the things you consider somewhat important and a "3" by things that are not important to you. After you've completed the list, ask your partner to do the same.
_____ saving money
_____ our own business
_____ cultural events
_____ job success
_____ lots of money
_____ new car
_____ pay off debts
Now that both you and your partner have completed the list, take some time and compare.
Do you both value the same things? Do you want more new clothing when your partner would prefer to go on a fishing trip?
It's hard enough for one person to decide which is more important, but even harder for two people to agree on the same things.
Do you and your partner agree on your spending values? Are you spending money on the things that are really important to both you and your family? Take some time to compare your actual spending to your rated priorities to see if they really do match.