REPORT

In most cases, an individual cannot be in the position of having complete financial planning without the need of budgeting for his or her money. Now that I was managing my household expenses, having a budget in place will be essential for everyone as well as saving the family from financial stress down the budgeting line. This is then means that it was a good idea to ensure that I have a clear idea of my income as well as the expenses so that I can plan accordingly whenever making financial decisions (Lauraine, 2012).

In the process of coming up with the budget, there food and shelter are the two things that were given first priority. Since they are the basic needs it means that our household would not survive without them.  In terms of food, there is the need of reverting to cheaper ingredients and goods. For travelling expenses, my option as the budget dictates will be using a train or using a bike so as to cut back the gas expenses. The next thing is considering household as my third priority, then childcare, medical, transportation, and taxes. Entertainment is another expense which thought I could include but because of the current situation of the family I was forced not to.  Regardless of that, it implies that scrutinizing each group in order to figure out where to cut back is a wiser thing to consider too. This is because it will assist in making adjustments as much the family financial obligations are concerned. Basically, whatever adjustments I will be making, it means that one I tally them out, chances are that the figures may end up being the same or relatively higher than the income (Reynolds, 2010). Therefore, I should ensure that I have enough left over which will be put aside as savings for unforeseen emergencies.  

For other individuals, putting away enough cash to go on vacation can be the ultimate luxury. Moreover, for others getting monthly pedicure or dining out once a week is a real treat. Despite that, for the sake of my family financial budgeting it is essential to acknowledge the manner at which I will be getting the most from the family income so that we can live comfortably and within our means. As stated above, in creating the budget, the aim was to determine the family’s fixed or nonnegotiable expenses for instance utilities or rent. By adding all the expenses and then subtracting the total form the family’s monthly income is what will amount for the amount to save (Reynolds, 2010). This is what will be available for discretionary spending i.e. entertainment or dining out.

In connection to that, with the budget, in means that keeping track of the income will be easy. The reason for this is because as much as budgeting is flexible we can always shift our priorities, saving some of the wants and needs for the coming month. Furthermore, as the numbers in excel indicate, it suggests that our expenses had to be within our monthly income. There is no need of budgeting for something that that will never manage to keep or meet. Just like an exercise program or diet, it is essential to be realistic. In case the family could not have the ability of sticking to its saving plan, it implies that we should not expect this to change overnight. Instead, the numbers in the excel document indicates that it was important to start with setting small goals will enable the family build confidence of tackling bigger changes down the road (Crystal, 2012). In particular, the family budgeting didn’t have to b about deprivation.

 

 

 

 

Reference

Lauraine W, (2012). 9 Steps To Family Budgeting. Digital Revolution Media Press

Reynolds, S. (2010). One-Income Household: How to Do a Lot with a Little. Cincinnati: F+W Media.

Crystal P (2012). The Money Saving Mom's Budget: Slash Your Spending, Pay Down Your Debt, Streamline Your Life, and Save Thousands a Year. Simon and Schuster