The Maze of Family Finances
The family finance game no longer just entails paying the
mortgage and other bills each month.  With budget planning,
college and vacation savings, and making smart investments,
knowing the ins and outs of your financial situation is
vital for a healthy home and a healthy future.
 
Too many people, women especially, ignore this area of home
management.  Their spouse will take care of the finances
while they take care of the home.  This is all well and
good, but it's important not to keep yourself in the dark.
Knowing where you are right now financially is the first
step in knowing where you want to be, and how you're going
to get there.  Be part of the decision making process –
it's what being partners is all about!
 
So, how do you dive in and get up to speed on family
financing?
 
Make A Budget
 
The most important first step you can take is to make a
budget for yourself.  Most people have no idea how much
they spend on what each month, and knowing where your money
is going is essential.
 
Write down all your monthly bills: mortgage, car payments,
utilities, cell phone, internet, etc.  Also keep track of
how much you're spending on groceries and ‘invisible
purchases', like that $3.95 latte you get every morning.
Track your spending for a month and you're guaranteed to be
surprised at where it all goes!
 
Set Goals
 
After you know where your money is going each month, you'll
know how much you have left over for savings and
investments.  Having very clear goals about what you're
saving for is essential to successful saving.
 
Instead of just vaguely putting money into a CD or savings
account, sit down and look at what you want.  Do you want
to take the family on a stellar vacation to Aruba next
year?  Do you want to be able to pay for college when your
kids get older?  If you know you're trying to save up so
your daughter can go to the school of her choice, it might
make you think twice about that latte every morning.
Coffee at home tastes just as good!
 
Think Before You Buy
 
Make conscious choices about what you buy on a daily basis.
  Making a real effort to mull over purchases will not only
save you money but will also cut down onn the clutter in
your home!  Ask yourself if you really need this, does it
have a place in your home, and if you're really going to
use it.
 
Teach Good Habits
 
Don't forget about your kids.  Teaching your children to
handle money responsibly will help them be financially
successful adults.  Give them an allowance (whether or not
to have them earn it is a personal decision) and let them
know that once the money is gone, it's gone.
 
If they splurge their week's allowance on video games and
then want more the next day to go to the movies, don't give
in!  This teaches them to budget their money, and will make
them start thinking about their own purchases.  If they can
learn to ignore our society's lust for rampant consumerism
and make wise choices, they'll be ten steps ahead of
everyone else.
 
Pay Yourself First
 
Having money automatically deducted from your checking
account every two weeks is a great way to make yourself
save.  If you never really see the money, you're less
likely to miss it.  Many banks will do this free of charge,
and setting up automatic withdrawals takes only a few
minutes.  It's well worth it if it helps you save for your
future goals.  If you're wondering how much to withdraw
each month, first try 10% of your net income.  If that puts
too much strain on your finances, drop it down to 8% or
even 5%. But never down to 0%!
 
Remember, having goals and knowing what you're saving for
will enable you to chart a clear course for where you're
headed.  You can get there with some careful thought and
advance planning.
 
 
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Pat Brill is co-founder of http://www.SilkBow.com which
supports Busy Moms with free gift ideas and helpful tips to
meet the challenges of motherhood. She is also co-founder
articles covering many areas of wellness. You can reach Pat
 
.