I spent years in a professional setting working as an office manager, bookkeeper, and accounting assistant. So why is it that I have no problem managing other people’s finances, but find it so difficult to manage our own?
I think the reason is that a lot of how we spend our money directly relates to how we feel about and value our money. Therefore money, finances, and budgets can be a very personal matter. When I managed up to millions of dollars of a business’s money, I had no emotional attachment– it was not mine. I became the gatekeeper that kept track of it, protected it from being spent as much as possible, and tried to add to it. If I did the same with our own personal funds, we might be a lot better off.
If many of us were able to take a more objective approach to our financial situation, having and keeping a budget would be much easier to accomplish. That is why people pay to consult with a financial adviser, portfolio manager, or investment banker. Though the situation is individual, we almost need someone outside of the situation to make effective decisions on our behalf.
Because each family is so unique, they may each require a different budget. Although it is difficult to provide definitives about how a budget should be set up in each household, there are some basic foundational principles that can help your budget to be functional and useful in meeting your financial goals.
I was lucky enough to be able to guest post again on The Thrifty Social Worker, and she asked me to provide a post on this topic of family budgeting. Please click on the link below to be taken to the post:
You will note that the guest post does not tell you to do this, and not do this. I purposely did not cover specifics as a guide to the only way to do things. Rather, I think that different tactics may work for different families.
The most important method to follow when trying to establish a budget for your own family is making sure that it fits and meets the needs of your particular family, and not someone else’s. By avoiding a one-size-fits-all strategy, you are more likely to achieve success in accomplishing the financial objectives that your family has established.
Have you discovered a tactic or method that makes it easier for your family to stick to a budget? Please share with us by commenting below so that we can learn from you.