In your journey of saving money and accumulating wealth, there are certain things that need to be done. In my last article How to make a personal budget, I wrote about the importance of making a personal budget. I also wrote that how every family member matters in your personal budget exercise. In the article Money Saving Tips: Where can I begin?, I mentioned that setting up a personal budget for every family member is a significant step. In this article, I am going to write about this topic at length.
TEAM- Together Everyone Achieves More
In a family, if you decide and dictate to everyone that they have to strictly follow rules made by you regarding expenditure, it will not be effective. A family is like a team. So saving money and budgeting must be taken as a game. Each individual can take a task and work on it. Each of them can track his or her expenses and note them down in a notebook or on a computer spreadsheet program. Then make efforts to curb unnecessary expenses as a team. Talk with each other and take advice on how can costs be minimized. Find cheaper but good alternatives to necessary things. If each member puts in their energies into it, the personal budget exercise will be a success.
Teach Children the value of Money
When children find a rupee under the sofa, they are delighted that they will be able to buy a toffee. The excitement fades away as they grow, they require money for their needs and wants. It is not difficult to teach children the value of money. It is indeed a good idea to involve children in the making of family budget. Surely, children will not understand about insurance costs, mortgages, etc., but they will learn that to bring something to home, money is paid. They learn it when they see their parents open their purses to pay for the things. They also see their daddy or mommy work to get that money. These things need to be told to children so that they learn the importance of saving money.
Set achievable targets for every member
Setting easy targets for every member and then rewarding them for achieving those targets will help them retain their motivation. As human beings, its quite tempting to spend money carelessly on things which are not needed. If each member of the family can hold that temptation, it will be half a battle won already. A family dinner or a movie will be a nice incentive on achieving such targets.
Display your Personal budget exercise goals
Displaying your goals on a space of a wall which can be easily seen will help you keep motivated. Write what each member of the family has to do to achieve the goals. Also mention the rewards on achieving targets. Psychologically, it will keep you aware and vigilante on your mission to save money. Thus, it will be a good personal budget exercise for every member of the family in the journey of accumulating wealth.