The inflation dilemma and the lack of agreement on its transitory or entrenched nature has been on the list of main concerns for central banks and investors for some time, impacting the world’s economies every month. Also to the family budget.
Updated steps for a good family budget
- Establish a clear objective: aspiring to buy an apartment is not the same as saving for the holidays
- Collect income, including returns on potential investments
- Collect expenses and accurately differentiate the fixed from the extraordinary
- Create an excel document of control
- Sort expenses by their “inevitability”
- Undertake the necessary cuts
- Think of the family economy as if it were a company
- Act with perseverance and discipline
The impact of inflation
Narrowing the vision to the field of the family economy, however, the effects of inflation translate into higher prices for products for daily use, which are putting a burden on the finances of many families.
The rise in the price of food and fuel, in fact, catapulted to 5.5 percent the consumer price index (CPI) in November, according to data published by the National Institute of Statistics (INE) in December.
This rise in prices implied an increase of one tenth over the October rate, as well as reaching its highest level in 29 years.
And in this context, it is important to carry out a good planning of the family budget that allows to face 2022 with guarantees, in addition to avoiding unforeseen events.
Different scales depending on the objective
The first thing to take into account when drawing up a family budget is what goal you want to achieve at the end of the year, since, logically, it will not require the same effort to buy a home as to get a savings mattress with which to enjoy of a dream vacation during the summer.
From Santander Bank It is indicated that once a goal has been established and the importance of preparing a budget has been assumed, the first step will be to gather all the income and expenses data of the family unit over the course of a month.
By putting on the table, or on the spreadsheet, the joint payrolls of the family members and other possible remunerations such as a flat for rent or the profitability obtained from different investments, it will be easier to visualize the liquidity of the domestic economy through throughout the year.
In the same way, by collecting all the receipts for expenses in purchases, leisure, or amortizations of past investments, it will be possible to reflect much more clearly if any disbursement can be cut, or redirect that expense to other areas that contribute more to future growth. of the family economy.
A tip that provides Santander Bank In his recommendations to prepare a customized family budget, he goes through categorizing each of the economic movements made throughout the month.
In this way, it will be easier to see if a family incurs many fixed expenses, if it has gone through a bad spell of expenses due to unforeseen causes such as breakdowns and repairs, or if the income with which it faces the pursuit of its objectives is not the right ones to achieve them.
Once all the expenses and income are duly ordered, it will be enough to calculate the total difference between expenses and income to know the saving capacity of the family nucleus, and decide if it is enough to undertake the search for the proposed objective.
Think of the family economy as that of a company
From ING Emphasis is placed on the need to think of personal finances as that of a company, ordering expenses according to their “inevitability”.
Thus, the necessary cuts can be made in case of wanting to expand the monthly savings margin based on a more factual than emotional criterion, basing joint efforts on the data reflected in the house’s “ledger”.
Once the calculation results have been obtained, however, the financial institution also recalls a fundamental obligation to achieve the goals set: not to abandon the effort to meet them.
As with any long-distance race, perseverance and discipline are as fundamental as the organizational ability to set objectives, so once defined, all that remains is to stick to the results and row to achieve them in the shortest time possible.