Preparing Your Family Budget

If your family is floundering financially, it may be time to put pen to paper (or fingers to keyboard) and make up a family financial plan. Consumer Credit Counseling Service suggests keeping the following tips in mind when developing your family budget:

1. Your budget should be tailored to your needs, values and priorities, with special consideration given to personal goals.

2. Be realistic when establishing spending categories and quarterly expenses (e.g., taxes, car insurance, holiday purchases, clothing, etc.).

3. Let your budget determine your discretionary income (money left over after living expenses) before you decide to pursue additional installment debt.

4. Credit obligations should not exceed 15 % of your take-home pay.

5. Saving 5 % or more of your take-home earnings is a necessary element of any budget. Remember . . . the unexpected can and usually does happen.

6. Involve all members of the family when determining and prioritizing goals, and when deciding the amount of income to be allotted for each goal.

7. Keep your records simple.

8. Remember, you are the only one who can maintain your budget. Buying without careful thought and planning can and will destroy your spending and savings plan.

9. Don’t panic if your expenses exceed your income. It may be necessary to revise your budget by reducing spending as much as needed. If your expenses are less than your income, have fun allocating funds for those future goals such as the purchase of a home, a car or a much-needed vacation.

10. Nonprofit counseling services such as the Consumer Credit Counseling Service provide free budget guidance to help you calculate, implement and stick to your budget.

Look for more information on personal financial management at Consumer Credit Counseling Service of Greater Washington Inc.

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