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How you manage finances matters
Do not buy things that are outside your budget. Stick to your expenditure plan. Photo by Edgar R Batte
What you need to know:
Money will always be the lever that moves the family. However, failing to plan for it has many associated problems. Avoid such problems by planning, writes Annet Katusiime.
Have you ever asked how much money you and family need to survive for the next five years?
Well that is how important planning can be. It gives you an insight into your finances and how you can use what is available to keep your family going.
Most people say money is never enough which to some extent is true because as humans our needs are limitless and every time we improve, our lives come with new needs.
Demands come at different levels of our lives. Therefore, it is important to know the amount of money that is sufficient for your basic needs at every stage of life to help you make better decisions.
If we live with the ideology of not having enough, we can never be content. In life you cannot have everything you desire because of different factors.
However, the power is in your hands to decide what should be important in your life despite the challenges that you go through.
Whether you make a lot of it or little, money will always be an issue in most households and can breed conflict.
Money should be a constant conversation between husband and wife and all this must always focus on how to improve.
If there is mutual understanding, plan together and make a budget based on your incomes.
This must be done against the family’s expenditures which must cover daily expenses and emergencies.
We live a day at a time but decisions must be made based on what we planned yesterday.
This means that the plans we accomplish today will impact what we shall accomplish the next day.
We must switch our attitude to look at the long-term and this can only be achieved by planning for tomorrow and not today.
If you live within your budget don’t be shocked that you might have surpluses in future, which you can invest into developmental ideas.
But even with a deficit budget don’t give up on saving and don’t get tempted into accumulating debts.
According to Benjamin Franklin: if you fail to prepare, you are preparing to fail. Therefore, you have the responsibility to provide a platform that will give your family a lifeline.
The responsibility to manage family finances should be shared between husband and wife with an attitude of trust and openness.
Money in a family is key and how you handle it will always matter.
Wise financial management can provide security and promote family wellbeing but all this must be supported with a proper understanding of the principles of money.
A family can experience financial troubles due to unemployment, over spending, unexpected emergencies, or mismanagement.
You have seen wealthy families going broke after the death of one of parent. Such failures come with a lot of emotional pain and regret. You can avoid this if you have a plan that can make you survive through the hard time.
The writer is a certified financial literacy trainer: [email protected]
