When you use a family financial budget, you are taking your first steps to financial freedom.
Suppose your boss says, “Congratulations, you are in charge of my retirement party.” What are your questions?
1. Can I get her job?
2. Can I get her office?
3. How much can I spend?
You need to know the party’s budget so you do not overspend company money. Same goes for a family budget.
Let’s say your family brings in $3,000 a month. Do you know exactly where every one of those 3,000 dollars are going? A good idea is to designate what “type” of money you have.
First, there are “fixed expenses.” These monthly expenses should not be a surprise and they should not change. Includes payments such as rent/mortgage, child care, utilities, car payment, school tuition, child support, school loans, internet and car insurance.
Next are your “long-term expenses.” These are annual or semi-annual payments you should be saving up for all year. Again, they should not be a surprise. Expenses include Federal income tax, property tax and holiday gift buying. By saving all year, when your property tax bill comes due you have the money already saved.
Finally, there are “discretionary expenses.” These are expenses you really do not need, but you want. The problem comes in when you cannot afford the expense. These include cable TV with full sports channels, Netflix subscriptions, SXSW tickets, restaurant dinners and vacations. These are the expenses you can cut back on to save money.
We are not suggesting you do not go on a vacation. But you should not go on an expensive overseas vacation when you have credit card debt!
The key to a budget is: Money in = Money Out. You should know exactly whether your money will be allotted to a fixed, long-term or discretionary account. All money left over goes towards building your Emergency Fund.
Need help and advice setting up a family budget and getting your finances organized?
For only $149, Capital Budget Strategies, LLC, Austin’s best Money Coach, will sit down with you, your bank statements, your bills, your credit cards, and your pay stub and conduct a complete financial review.
We work with you step-by-step to organize your finances once and for all! Our Austin Money Coach will help you set up a personal budget, an emergency fund and a Snowball Debt Repayment Plan (if you need one).
We can meet during the week, on weekends or in the evening. We can meet at your office, your home, our home office or any quiet place that has comfy chairs, coffee and a large table! Our Austin money coach will meet you.
Give us approximately 4 hours and we will give you a family budget and set you on your way financial security and winning your retirement.
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