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Personal and family budget planning

Any budget consists of revenue and expenditure parts: how much you plan to receive and how much to spend. It is better to start budgeting with income – they limit your spending.

Don’t plan to spend more than you earn

You can, of course, take out a loan or borrow from friends, but budgeting for loans to cover the deficit is not always a good strategy. Everything you do will have to be given back.

It is not known what state your budget will be in at this point, whether you have enough money to cover your debt. Not to mention the fact that the interest on certain types of loans at times covers all the possible benefits of their use.

However,  in case of an emergency financial shortfall, you can always ask for payday loans. UStatesLoans offer quick small payday loans with no credit check.

Don’t count on random income

You must avoid unpleasant surprises if you budget only permanent income (salary, income from renting an apartment, etc.). If later you have a one-time, random income, it will not be difficult to dispose of it.

It should be used for early repayment of loans, long-term savings, and planned large purchases. You can afford to spend part of your one-time income on recreation and entertainment.

Rank expenses by importance

Make a list of expenses, starting with what you need to pay (loan payments, rent, taxes, kindergarten fees, etc.) and expenses that you cannot do without – food, clothes and shoes, transportation, etc.

Try to also leave some for unexpected expenses, and if you don’t have loans, include some long-term savings on the must-have list.

Set long-term goals

If something is left after the list of mandatory and unavoidable expenses is formed, you should set aside at least a part for future large expenses. Planned (going on vacation, buying a car, down payment on a mortgage, etc.) or quite probable (for example, replacing household appliances).

If you have loans, use this part of the money to pay them off ahead of schedule. Only after that, the remaining money can be allocated to optional expenses: entertainment, the purchase of delicacies, and other joys of life.

Don’t deviate from your plan

Being unaccustomed to following the plan can be difficult, but try not to mix expenses. You should not spend money on food or rent on a beautiful or useful little thing, persuading yourself that you will pay off the rent debt next month.

Filling the hole in the budget will not be easy. Your plans for the month should not change under the influence of spontaneous desires.

Keep track of expenses

Neither the size nor the structure of expenses in the personal budget can be a constant value – the prices for different goods and services grow in different ways, and our need for them can also change.

Regularly audit expenses: if some item of expenses has begun to consume too much of your income to the detriment of the rest, you should consider whether it can somehow be returned to its usual framework.