Decide on Your Spending Priorities in Your Budget

 

Your Spending Priorities & Your Budget

Setting up a family budget is a matter of deciding what your income is and what money will be going out due to variable and fixed expenses. In addition to this, it is also important to prioritize your spending so that you have the money to take care of things that rank in importance to other things you can spend your money on. Prioritizing helps you keep on track and stay focused on your financial goals. Also, when hard times hit, you know what you must spend money on and what can wait.

You need to make sure that you have money for things that are critical to survival. These can include items such as food, transportation to and from work, savings, education, and medical care to name a few. Of course, food is a priority but take a close look at your family’s eating habits and cut back on fast food carry-outs and eating in restaurants. These can blow your food budget real fast. Many large grocery stores have specials on certain food items and you would be wise to search out these bargains.

Of course, transportation is necessary to get to and from work and other things like school activities but you should carefully scrutinize your transportation situation. If you are having tough times then carefully ask yourself if you need two cars for both spouses. An automobile is a terrible financial resource consumer. Ask yourself if you have reliable mass transportation available in your city to get you to and from work and keep only one car.

Medical care can be another money drain even with insurance. Sometimes, if you carefully weigh the health of your family, you can save money on health insurance premiums by taking options with higher deductibles. You will need to have the deductible ready to go should you need it but if you carefully analyze your situation you could perhaps reduce your premiums.