Life Planning
You should try living on basic budget and start investing the surplus for a better return. Family's basic budget is dependent on the number of factors like the number of children in the household, if you are a single parent, number of earning members in the family and state where you are residing in. While planning a budget the expenditure on following essentials should always be kept in mind:-
• Accommodation - Set aside an amount which you need to pay as a rent if staying in a rented apartment or keep aside the amount you need to pay as you monthly installment if you own private property.
• Food - You need to plan your budget to provide your family with a balanced nourishing diet
• Health care - It always better to have medical cover in case of emergencies for all your family members so do make plans to pay regular premiums for renewing these medical policies
• Taxes - Taxes which needs to be paid to the federal and state government should also be taken into account
• Education and child care - If you are pursuing any part time course or are paying education loan consider that amount in the budget. If having children in the family then a definite amount should be set aside for their education and health care need
• Other needs - Other factors such as transportation, personal grooming, clothing and other miscellaneous expenditures like paying of bills should also be included while planning a budget
You can plan you basic budget using simple pen and paper or Microsoft excel spread sheet. Alternatively, you can also download budgeting software from net. By keeping a track of your income and your expenditure, you can easily find out the surplus cash which can be used for investment and savings. In this way you can also be made aware of the shortages which will prompt you to cut the corners.
So keep a track of your income and spending habits and plan your budget, this will definitely let you enjoy all the goodness of life while still living on basic budget.
Read also:
* Retirement Planning
* Basic Strategic Planning
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