From purchasing mortgage life insurance to developing a proper household budget, there are many things you can do to protect your family from any financial problems in the future.
No matter what your current financial situation, it’s always worthwhile to manage it carefully. Creating and maintaining a household budget may sound complicated, but it’s very simple once you know how, and it’s a very good habit to have.
Having a well-planned household budget has many benefits, including:
- ease of identifying areas in which you spend and take the necessary steps to curtail expenditure on non-essential items.
- an opportunity to teach younger family members the value of money.
- preventing a panic situation in case an unexpected expense comes up.
- alerts you to any possible cash flow problems in the future and how to mitigate them to keep your family financially stable.
20/20 Keeps Your Family Protected
Just as a household budget can help prevent any financial problems within your family, 20/20’s Mortgage Life Insurance helps keep your loved ones protected during some of life’s most unfortunate setbacks.
We offer affordable, flexible, and transparent mortgage life insurance products to meet all your unique needs and circumstances so you never have to worry about your family’s well-being.
3 Steps For Developing an Efficient Household Budget
A well-made household budget can have a great impact on your financial life. If you don’t have one, you may find yourself facing some unfortunate monetary problems in the future.
In today’s consumer era, a household budget is all the more important because it teaches all family members the value of money. Contrary to popular opinion, creating a household budget can be an uncomplicated process if you follow these 3 simple tips:
1. Set Goals
Before you can begin to manage your money, you need to identify what’s important to you. Then you’ll have a foundation to decide what you want to do with your income. Write down what’s important to you and use this list to help you determine your goals.
Your goal may be to:
- pay off credit cards
- build up your savings
- start up your own business
- save up money for your children’s education
- travel
- live without financial worries
- have a home for your family
REMEMBER: Be realistic when setting your goals. You can always increase your savings later, but start by planning for success!
2. Identify Your Income and Expenses
Once you’ve established the goals for your money, it’s time to look at where your income comes from and where it is going. Start by making a list of all your household sources and the amounts. Remember to include everything such as:
- your wages (after taxes)
- commissions
- Self-employment income
- child tax benefits
- pensions
- spousal support
- any other regular income
Once you have done that, you can begin to record and track your family’s spending and expenses using your computer or even a simple notebook and pen. Do this for three months and take the time to learn what you are really doing with your money.
REMEMBER: Try not to track how you think you should be spending. This is the time to learn - there will be plenty of time later to make adjustments and choices when you put your budget plan into action.
3. Design Your Budget
Many people cringe at the word ‘budget’ because they think it means limitations, deprivation, and no money to spend on anything fun. However, your budget is your spending plan - it will allow you to live within your means, avoid the stress of money troubles, and give you the freedom to make choices with what you have.
When designing your budget, always keep in mind:
- your financial goals (as defined in part 1)
- that your expenses should NEVER exceed your income
- to separate your needs from your wants to determine what is truly important
- you may have a surplus - which you can add to your savings for the time being.
TIP: If you are experiencing financial difficulty, savings may be the farthest thing from your mind. However, it’s vital that you plan for the unexpected. Setting money aside for savings is the difference between having a budget that works and one that doesn’t.
Not only will saving protect you from financial disaster, it’ll also help you meet all your financial goals.
Call Today
To find out more about how 20/20’s Mortgage Life Insurance can protect your family in case of any financial setbacks or other unexpected life occurrences, contact us at 1-1-866-821-1439 or fill in our online contact form.
