IAN FILIPPINI ON HOW TO PLAN A FAMILY BUDGET
Planning the family budget is one of the foundations of personal finance management to achieve well-being financial, in this article Ian Filippini will give recommendations to with a minimum investment of time to get the maximum benefit for your personal finances.
Why it is needed?
The need for planning family budget answered by Ian Filippini:
- Determine the size of the amount of money that you can not spend on current life and directed to the achievement of its objectives and financial independence.
- To ensure the comfort of the living that money is not flowed through the fingers and spent on something important and necessary.
- Everyone knows that it needs to be planned but few who do.
Why people do not plan a family budget?
In Ian Filippini opinion, there are two reasons.
- The first is the wrong attitude towards it.
- The second is very complicated process of planning the family budget.
Ian Filippini Recommendation number 1: Begin right attitude to the family budget.
Much competent management of personal finances is associated with the need to save much and deprive them. This is a big mistake.
In fact, it should increase the quality of life. Due to what is going on?
The fact is that most people are at least 20% of their spending money recklessly wasted. For example, the abuse of Energy, frequent meals in the cafe, overpaid for goods and services that could be cheaper (clothes, mobile phones, etc.), impulsive purchases. Refusal of them does not reduce the standard of comfort.
But how happy you will be able to redirect some of the money that is saved on something really important for you: personal care, recreation, hobbies, gifts to friends and relatives.
In the second part of the money, Ian Filippini recommends to create a personal capital and start on the path to financial independence and financial freedom.
You can see that we are not talking about the total spending cuts but about priorities. Such planning the family budget will improve the quality of life without the need to earn more.
Recommendation number 2: Do not overload the family budget trifles.
There are programs that consider the cost in terms of money and in kind up to the grams of onion, which you ate in the past month.
This detail does not give any advantage and takes a lot of time and effort. As a result, it bothers.
Therefore, please create a simple table in the program excel which lists the main items of income and expenses: food, meals outside the home, the cost of communications, transport, clothing, footwear etc.
Recommendation number 3: At first, pay yourself and then all the rest.
Man gets paid incurs expenditures and defers only those funds that remain at the end of the month. But there are always very important and urgent needs, which will leave the rest of the money. This is the wrong approach.
“It is much easier after receiving salary to defer the amount that you plan to send to the creation of personal capital and the remaining money is easy to spend” says Ian Filippini.
Recommendation number 4: Calculate how much an hour of your life.
Some people hesitate to save: as they think, if they ask for a discount or indignant expensive goods. In fact, the rich are not afraid of the surrounding evaluations. They know the value of money.
If you are running out through your fingers 20% of revenues is thrown 35 hours into the air of your precious life or almost one working week.
Just think you could relax for a week and still not lose the life of comfort.