Family Budget

Set a Family Budget That Includes Savings

by M Whitehead

When you and your family sit down to set a family budget plan, savings might come near the end of the list. Routine living expenses normally soak up a great deal of a family's resources and whatever is left over might be so miniscule that it won't seem worth saving. Regardless of the size, savings are a necessity.

No one can predict when life will take a turn for the worse. We rarely ever budget for illness, a broken car part or a furnace that is too old to keep us warm in the winter. These are rainy day expenses and as the old saying goes, sometimes when it rains it pours.

When you set a family budget you should consider savings as a high priority. One way to guarantee that you will save is to deduct a portion of your paycheck before you budget with it. In other words, you can take perhaps 5% or 10% of your paycheck and put it in a rainy day account. In that sense you are pretending the money isn't there and you can't be tempted to spend it. With the remainder of your paycheck you can set a family budget that will tend to your regular monthly expenses.

Another effective method of budgeting for savings is to take any extra money you receive during the year and place it in a rainy day account. This could include things like year-end bonuses at work, or income tax refunds. If you take those amounts and immediately put them in a bank account that is dedicated to emergencies, you won't have time to consider what else you could be buying with that money.

If resources are very tight when you set a family budget and savings are essentially impossible, it might be time to consider some cost cutting measures to free up some extra money. Here are a few ideas of things you can do everyday to save money:

Walk instead of drive. If you need to stop at a grocery store to fetch milk or bread and it's only a few blocks away, take a walk. It not only saves on fuel costs but the exercise won't hurt either. Take a bagged lunch instead of buying lunch. Bought lunches can add up to a fair bit of money over the course of a year. If you prepare a lunch at home, you'll quickly notice the extra money you're saving. Visit the library instead of the book store. Reading is a favorite pastime of many people, but it can become costly. Instead of purchasing each book you want to read, visit the library. The cost of a yearly membership is a very small fraction of what you'd normally spend on books over the course of twelve months.

By adopting a few small changes you can start saving money each month. It's always good to be prepared for any possible financial emergencies and having a saving plan in place when you set a family budget can help with that.

About the author:
M. Whitehead is the leader in family debt management. All around the world debt is a problem that literally just keeps on growing and growing. Debt does not discriminate. Visit us at http://www.debtmanagementsupport.com

Latest Articles...

Creative Thinking in an Economic Downturn - Some Ideas For Families Who Are Trying to Lower Expenses
How does one come up with creative possibilities for a break from the real world, for enjoying one's family, children, grandchildren, life? We have some ideas!

Dressing Girls For School
I have spoken to so many parents who tell me it is a monumental task to get their younger daughters ready for school in the morning. Unless your daughter has only one set of clothes to wear, she probably wants to change her outfit three times before choosing the one she will "agree" to wear to school each day. Here's how we solved the problem in our family...

3 Easy Ways To Make An Awesome Playroom

3 Easy Ways To Make An Awesome Playroom
Are you irritated every time you walk past your kids playroom? Paper here, toys there, the floor is strewn with stuff that you can't even guess what it is! Most of us feel a whole lot better when things are organized. Is it natural to be neat and tidy or is it a skill that must be learned? We'll let you worry about that question but we'll give you a few simple ideas on how to make that playroom fun again.

What should you expect at 6 weeks, 6 months or 1 year? We provide useful milestones and developmental stages so that you can keep an eye on your baby's development in the first year.
Baby Stages

The One Minute Rocket Ship Your Child Will Absolutely Love
We love Anthony's imaginative play idea which needs little preparation and provides many opportunities for bonding with your child, having fun and learning!

Ideas For Sharing Stories With Children
This two-part article discusses the ways in which stories and storytelling play an important role in children's lives. Techniques are offered for using stories to help develop children's verbal skills and imaginations. This is part one.

Who Owns The Problem - Parent or Child?
Who Owns The Problem; Parent or Child?
It is tempting for parents to assume ownership and responsibility for everything that goes on in the life of their child. However, when the parent jumps in too soon to solve the problem or give the answer, the child never learns to trust his own judgment and become a critical thinker.

Parenting - Making A Schedule
This article on the benefits of scheduling your day as a parent really struck home with me. It took me a while to work this out for myself when I had young children at home, and I wish I had done so - and benefited from the much calmer household that was the result - sooner!