Family finance

Spending Plan: How to create a simple spending plan

Creaing an effective spending plan.

Are you living pay-cheque to pay-cheque?

Do you have money month left over than money?

What if you left lost your job today, would you or your family be able to survive the next couple months?

Would you be able to survive an emergency?

What if something happens to the car, stove, washing machine or fridge would you able to afford to get it fixed?

If you are anything like me, you will shudder at what the fact that you have no disposable income if you need something or if you were to get sick suddenly. What on earth would your family do?

Well Dave Ramsey of the Total Money Make over has some useful advice for you.

“Your money will not behave unless you tame it,” he says.

  1. Be intentional about your money. How in the world can you do this? Simple. According to Dave Ramsey you can do this by having goals. So you do not like goals you say. Here is a little trick that can help you. It is very simple and easy.
  2. Budget your money. Before you physically spend any of you’re the money you earn – write out how you will send it. Simply take a piece of and write the amount you expect to get – your salary. Then make a list of all the things you are going to spend it on for that that month.

“Spend every dollar on paper before the month begins,” Ramsey says to anyone who think like him.

Give every dollar a name. In other words allocate your money to various things like grocery, debt, food, clothes etc. You will be amazed at how you will be able to manage your money and start saving. It works like magic.

Here is a practical way to budgeting for the family.



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