Conquering today’s economy starts with planning a family budget. Decide your family’s short or long-term goals with your spouse and other family members. Organize and set agreed upon dates to meet these goals.
Get as many people in the family involved as possible. Talk about your necessities, obligations and wants for saving and spending. You may want to do without certain family expenses, such as expanded cable, a second car or dining out weekly.
Make a record of your monthly income that includes salaries, bonuses, income from business and investments using a family budget-planning chart. Record your family expenses on a daily, weekly, monthly and yearly basis, and break them into monthly averages. Include major items such as mortgages, taxes, rent or other obligations as well as everyday expenses, such as gas or bus fare, school lunch and other activities.
Keep your family budget plan flexible and allow for changes. Use surpluses at the end of the month for savings or emergency funds. Invest extra money in stock investments or mutual funds and college funds for future goals.
Enlist the whole family in finding other ways to replace cable, dining out or vacations. There are free concerts, community events or at-home get-togethers you can plan. Ask your children if they would rather attend local outings every week or go on a vacation. The vacation may have memories, but the local events are something they can always enjoy.
Shop retail and grocery stores for the many sales available during a bad economy. Buy food in bulk, cheaper in the long run. Prepare whole meals in advance and store them in the freezer. Use leftovers from meats and poultry for soups and stews. You’ll be surprised how far you can spread your family budget.
Talk openly about money matters with children so they understand the importance of saving during the current economy. Explain to them that you have a family budget, but they will always have food on the table, a home and parents who love them. The situation will improve.