Preparing and analysis of Household budget: The family budget must be viewed in light of the family’s financial goals and overall financial situation.

If the family’s savings don’t seem appropriate in light of their financial objectives, then we should look into strategies to save more together. We remind out that the month-to-month cash flow surplus is on the low side. As a result, any unanticipated expenses will have to be covered from previous savings. The position can be improved by increasing the savings ratio (either by increasing income or by cutting expenses or by obtaining greater returns on earlier investments). The first place to make cuts is in the category of discretionary spending. Expenses that are absolutely necessary to the family’s well-being can be pared down. This will help to increase the amount of money that can be saved or invested.

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