Two institutions specialized in financial consulting stated that preparing a tight budget for the family and adhering to it is considered the most important step for achieving success and stability in financial life.
The Nerd Walt Foundation stated that adopting a family budget increases the chances of saving money significantly, while facing potential financial obstacles, pointing out that by following simple steps, families will be able to take a careful look at all expenditures and their categories, giving them the ability to control Expenses are re-directed according to the most urgent needs.
She explained that the usual expenses are: rent, services, communications, transportation, health care, education, as well as credit cards, groceries, gifts, etc., with the possibility of looking at other categories of spending in a measured manner.
The Foundation added that achieving financial empowerment is to follow up on expenses on the one hand and adopt a plan on the other hand, and while merging them together, families will have a successful budget, noting that the budget helps to provide funds for the time of need without resorting to borrowing, and also contributes to the stability of financial resources alongside Promote a culture of savings and savings and avoid exposure to financial problems in financial emergencies, as it helps to distribute income in an appropriate manner, and enables it to live within the limits of available income to avoid getting involved in debt trap.
For its part, the non-profit "Credit.org", which specializes in providing financial advice, believes that the budget has a fundamental role in determining the purchasing power of families and giving them a clear vision of financial resources and spending in an optimal way, considering that the most important of all is that the budget helps families to Achieving future financial goals. She pointed out that it is possible to start developing a financial and budget plan in the traditional way through the use of paper and pen only, or rely on digital spreadsheets «Excel» that allow users to perform calculations and distribute categories easily, as well as many smart applications that allow managing money and expenses, and setting goals , And assess progress made at the end of each period.
"Credit.org" stated that taking a look at the debit and credit card statements in the past months or tracking spending for a period of time, individuals should show spending patterns relatively quickly, indicating that from here expenses can be divided into recurring fixed expenses to be paid At regular intervals, as well as constantly changing or flexible expenses such as food, entertainment, etc., in addition to looking very important for financial goals, i.e. money that should be transferred to the emergency savings account, pension contributions and other saving options.
Adjustment of financial plans
Credit.org indicated that it is important to consider adjusting financial and budget plans periodically and continuously according to the data and variables that occur, including correcting errors that were discovered in expenditures and consumer or purchasing habits.
She explained that regardless of income and needs, it is always possible to save money by reducing expenditures by setting the income or monthly salary and any other income that an individual may receive, and by establishing categories of fixed and variable expenditures, some amounts should be allocated to make larger payments of debts or increase emergency allocations And considering it as a top priority, as the budget has a big role in detecting financial waste and adopting sound financial habits.