It’s a myth that a family budget is just for the rich.
In fact, family budgeting is something anyone can and should do to get control over their money. It doesn’t matter if you’re barely scraping by or making millions of dollars every year — family budgeting will help you make better financial decisions in both your short-term and long-term planning.
If you’ve ever felt like there isn’t enough money to go around, family budgeting will show you how to create a plan that works for everyone in your family – from the youngest child all the way up to parents and grandparents!
Here we team up with Polar Credit – a new simple way to access revolving credit and a reliable lender for your ongoing credit needs and payday loan alternative to share information on how to create and maintain a family budget. But before we do, some more information on Polar Credit!
About Polar Credit
Here’s the deal. With Polar Credit, customers apply for a credit limit through an online application and if the application is approved, sums of money can be transferred to their bank account. The good news is, interest is paid only on the amount of money drawn out of the credit line, not on the total credit limit agreed, and repayments can be tailored based on the customer’s current financial circumstances – so you can repay the full balance, or make a minimum repayment each month depending on what you feel is manageable.
Polar Credit offers access to small sums of money (from £25), so customers can just borrow the amount that they need and only pay interest on that amount – rather than being cajoled into borrowing larger sums of money which they simply don’t need. We also love the fact that they are committed to proactively reducing the cost of borrowing for loyal customers. So the first anniversary of a Polar Credit account opening, they reduce the interest rate by 10% per annum. They then continue to reduce the interest rate by 5% per annum every 6 months until it is lowered to 29.9% per annum. Nice!
In summary, Polar Credit features include:
• Access to funds on demand
• Can be faster to open a credit line account than a credit card account
• Significantly lower interest rates when compared to payday loans
• More flexible repayment options than short term loans
• No guarantor required
• Flexibility to borrow only the money you need, when you need it
• Interest only accrues on the amount that is borrowed, not the full credit limit
• Interest rates decreases over time
• Can help you rebuild your credit score if used appropriately
• Helpful for short term money shortfalls
• Polar Credit is a revolving credit product, not a loan
How to create and maintain a family budget
1. Decide why family budgeting is right for you and your family
While family budgeting might seem like a daunting task, especially if you’ve never done it before, the process can actually be quite simple. You’ll begin with deciding how much money you’d like to spend on each family member every month, along with other goals that you’d like to meet for the family as a whole.
2. Figure out how much money each family member should receive each month and other family expenses you need to pay
If your family expenses are anything like that of an average family, then there’s no question: family budgeting is something that can benefit you greatly.
The family budgeting process is all about letting you know how much money each family member needs and giving them the freedom to spend that money however they think best. But, if you’re not careful, family members will end up spending their family dollars without thinking about it first. That’s why family budgeting revolves around these three things: family costs, family income & family financial goals.
3. Create family spending charts and family money goals
When family budgeting, you’ll also need a tool that can keep track of your family’s income and expenses each month. Some families choose to use spreadsheets or software programs like Quicken or Microsoft Money to help them do family budgeting. Whatever family budgeting tools you use, just make sure that it’s an easy-to-follow system that family members can use to keep track of their spending and stay within their family budget!
4. Know your family’s family budgeting needs and wants
Once you’ve decided on your family budgeting tools, it’s time to begin family budgeting!
The family budgeting process is actually pretty simple. You’ll just have everyone in the family create a family spending chart that includes all of their expenses. That way, they can better monitor how much money they’re spending and how much family money is left over to save or spend however they’d like!
The family budgeting process is equally as simple when it comes to family financial goals. Your family might decide that, for example, you’ll go on a family vacation every year or start giving family members financial gifts at birthdays and Christmas instead of presents.
5. Make family budgeting a family affair
The family budgeting process is all about family involvement, and that’s the point to keep in mind when teaching your family how to budget.
You don’t want family members to feel like you’re blaming them for any financial problems you’ve had in the past or making family members feel like they aren’t trusted with family money. The family budgeting process should be fun and involve the whole family so everyone can build toward long-term family financial success!
Conclusion
If you’ve ever felt like family members are spending family money without thinking about it first, family budgeting can help you out. The family budgeting process actually makes family members aware of how much money they’re spending and helps them set financial goals for the entire family to reach together known as family financial goals.
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