Create a Successful Financial Plan

Few think of budgeting as fun, but it’s necessary for financial stability. The enjoyment comes later with the financial freedom of living life debt free. Here are some budgeting tips that we’ve found work well.

Open Communication

Successful household budgeting often comes down to good communication. Talk to your partner. Discuss things. Family troubles often stem from mismanaged money. Don’t let this happen to you. Discuss your monthly budgeting. Plan ahead.

Involve the Kids

If children are present, involve them. Let them know what your financial goals are, and what everyone needs to do to reach them. Not only will they appreciate your frankness, but it will also help them budget later in life as they grow up.

Budget Your Monthly Payments

Try budgeting your average month on a chart. Place it in a conspicuous place, like the refrigerator, so everyone is on the same page. Include the expenses you know you’ll have (e.g., rent or mortgage, food, utilities, transportation, etc.).

Rent $780
Utility Bills $263.55
(Save on electricity)
Gas $322
(Try carpooling)
Groceries $345.97
(Cut down on extras)
Clothes $168.98
(Hold back a little)
Dining Out $138.56
(Go out once a week)
TOTAL $2019.06

 

Good financial budgeting also includes planning for items that might pop up unexpectedly, such as medical bills, ruined or outgrown clothes, school activities, etc.

Add it up and compare the total against your current take-home pay. See what can be cut, and where you can save.

Effective financial planning requires that you build upon what you have for a secure, stable future. The savings can add to your home’s equity, or perhaps a down payment for non-homeowners.

Set goals… no matter how small

These are just a few ideas that help eliminate debt. Feel free to set your own budgeting goals that you can financially plan for and meet. The important thing is that you plan ahead and make your debt reduction a reality. Whatever works for you is the best option to take. Pay attention to your money. It’s your financial future at stake.