The art of personal financial planning for the family Today, we will offer you the art of personal financial planning for the family. The art of financial planning is one of the most important things that every family sees before taking any step in their family life. Her life.
Definition of the art of financial planning
The art of financial planning is an integrated process by which financial business objectives are set up to achieve substantial financial returns. This financial planning is not only for institutions but also for the family as it is also a small enterprise.
What are the basic steps in the art of financial planning?
To ensure that family expenses are monitored and regulated, in order to identify the funds that are disbursed and which are entered. A certain expense must be determined on a daily basis and can not be expensed. Know your limits on expenses that are spent monthly.
What are the foundations of financial planning?
These include rent, water bills, electricity bills, maintenance and housing taxes. Living expenses: These include transport costs and purchase of clothing and foodstuffs. Social expenditure: Includes vacations and restaurant bills. Social activities: Social expenditures vary from person to person and can be changed according to the way people live. Savings: Record money that is placed in a separate account.
Methods of successful financial planning for the family
Enhance your ability to manage your money
When you know all the aspects of which money comes in, you need to know your personal budget and make changes to your daily routine to match your spending. For example, how much do you spend on household expenses in return for the social expenses of your salary, do you spend all the money or keep a portion of the money, or do you pay the entire salary, if that is what you have to do in proportion to your circumstances?
Objectives and incentives
You have to motivate yourself by collecting a portion of your salary on a daily basis, as this helps to save a lot of money over a year, and this money can help you buy something new you need. Setting a goal is one of the most important ways to save money. Long-term goals are to save money to buy a new car or a new home.
The art of personal financial planning of the family
The family always needs to organize in their financial life in order for life to go well, and this needs financial planning such as:
Define budget with income split
The importance of planning lies in the existence of a budget for the family, which is by providing the family with back-up expenses in order to face the difficult circumstances that the family can face. The budget is divided by the wife’s salary if it works on 3 parts, the item of personal expenses, the item of services and the living item, the expenses that are expended, and then the surplus is saved.
Keep the expense book
There are many ways in which the family budget can be maintained, since money is spent without extravagance, because it protects the family from being in need of other people. It is normal for the budget officer to keep the book in which all expenses are charged for review at the end of the month in order to know what is necessary and also to know the unnecessary expenses in order to avoid repetition. Some luxuries are waived which can be dispensed by the couple.
Share others in the layout
A family that knows how to live smartly is the one that all of its members share in managing its money and all its affairs, in order to discuss problems and identify family goals, and also to plan the financial aspects of the family. The participation of family members in all matters related to them helps to strengthen the family, and this helps to create strong personalities, and participation in planning make the family many funds can need in many things.
Make the right purchasing decisions
One of the most important factors that helps with good financial matters is planning for proper buying. The family has a wide range of purchasing needs. Some of these purchases may be of no use. This is a mistake because it makes money. Purchased and benefits the family. Work hard to think deeply about what to buy monthly and what priorities the family needs, and there may be opportunities in the periods of discounts offered by the central stores that must be used to save money from the budget. Interest in the calculation of funds after taxes as this also must be calculated in order to know the income well, and be careful to know the expenditures that are disbursed.