Q:

What are the basics of devising a family budget?

A:

Quick Answer

Some of the basic rules to keep in mind when devising a family budget include spending less than the income, using cash instead of credit cards, prioritizing, saving a given amount and tracking all expenses, as stated on CNN Money. Making a budget may seem tedious and time consuming but in the long run it is able to ensure family relationships are not strained and that no member feels left out in terms of their personal needs.

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Full Answer

A well crafted family budget can easily help the family come together in order to create a better future. One of the basics to keep in mind is that each member should be involved in one way or another so as to ensure everyone's needs are catered to.

Another important thing to keep in mind is that a good family budget is one that involves a lesser amount of expenditure when compared to the total income, as stated on Money-Zine. The most important things or basic needs should be given priority over everything else. Leisure should take just a fraction of the amount earned.

Saving about 10 percent of the total amount earned will help the family build a better future with regards to financial independence. Saving can be in the form of keeping the money in a bank account or investing in a business that will ultimately increase family income.

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