Setting Priorities For The Family Budget

To Setting Priorities For The Family Budget, you need to prioritize your spending. You can not buy everything you want. You must buy the things you really need first. So how do you separate the "wants" and "needs" so that household spending has been successful?
Creating a family budget, you have to do three activities:
- List your income.
- A list of your expenses.
- Set priorities and make changes to your income exceeds your expenses.

List of costs is important because it allows you to see where the money goes. Priority setting lets you control the spending, so it is less than your income. You have to keep detailed records of everything you spend. Carry a notepad to write a description of costs and short duration of each item for purchase. Individual elements can be grouped into categories so that your expenses are more understandable. Keep track of your expenses for a full month.

After a month of recording everything you spend, you're ready to set priorities. This means that your household budget can reduce or eliminate spending on some items to keep your expenses below your income. It is always difficult to begin to reverse. But it will probably be the first to admit that their spending was a little out of control. Then there are objective ways to set priorities within your household budget can help minimize the pain by setting thresholds?

=== Objective Standards for Household Budget ===

Yes, the primary contribution to the respect psychologist Abraham Maslow's hierarchy of human needs. This prioritization of needs, can give some pointers to make your budget priorities of families. This hierarchy is described in the following format (the top level):

1. physiological needs (food, water, sleep, personal hygiene)
2. Security needs (employment, income security, protection against violence, family safety, health)
3. Love / Belonging needs (friendship, family relationships, social networks)
4. Esteem needs (recognition, self-esteem, sense of contribution)
5. Self-actualization (the ability to use their talents, creativity, enjoying life)

=== Apply the hierarchy of the family budget ===

By implementing a household budget, it is necessary to appropriate money for items that meet the physiological and safety needs before allocating funds for the needs at other levels. Let's see how it works.physiological needs are the most important. You need food, water, sleep, and personal care to survive. This helps to create their own budget priorities of families. The costs of these requirements take precedence. Basic food, accommodation and staff costs of care are the first budget of his own family.

Followed by security needs. These needs include allowing you to keep your family and ensure their safety. basic expenses for transportation to and from work, work clothes, making your home and neighborhood safety (including taxes), and health care are included here. Let's look at some of the elements of the household budget in the first two areas, such as food (staple food) and transport to and from work.

It 's easy to spend more than necessary to meet these basic needs. You can combine the cost of basic foodstuffs, money that could contribute to the recognition of self and self-esteem (the need to rise above the baseline level). For example, the purchase of nutritious foods and make healthy meals at home to help meet the basic physiological needs. But on the evening of fabulous restaurants in more than basic needs. Frequent the fast food may be convenient, but probably have more expenses than just a nutritious meal at home - and fast food are probably much less nutritious.

You might also consider the transport needs of the work. This is a basic level of transport that meets the requirement for safe and reliable way to go between home and work. And there are more luxurious and expensive, the amount that meets the needs of self-esteem. Creating a family budget, you should carefully consider how much budget to meet these basic physiological needs and safety. Reduce the cost of certain things can be annoying and seems a bit harsh. But if there is money after meeting these basic needs, you can allocate money to other levels of need.

So let's say you have money left after your family budget is to estimate how much you need to consume to meet the first two levels. You can then allocate funds for "Love and belongingness needs." These activities may include family entertainment, a casual dinner or a family trip or vacation. Other things to consider are cable television, Internet, and watch a movie. It may also include magazines and newspapers in this category. If you have money in your household budget remaining after the award in this category, you can allocate money for items that meet the next category.

When the money runs out you can budget, you know that spending on items not covered will accrue. This is the party to make a household budget that looks painful. But it also frees you from the anxiety of not knowing when the collection agent or call the court shall issue an order for garnishment of wages. Therefore, you can prioritize the elements of their household budgets on an objective rather than using Maslow's hierarchy of needs of man. Maslow's hierarchy of needs of all human understanding to help your family budget to give support and make it a success.

Thanx to Bob Sherman for your nice article