It helps you set up that vision for your life you need to have as part of your money management plan. Or a giant wedge of mortgage to a little slice of property tax sans principal/interest payments some day!įor visual folks, this is a really easy way to start organizing finances. I love the idea of seeing my pie chart change from multiple slices of debt to multiple slices of charitable giving, for example. The total absolute amount is less important for this exercise, but the proportions of how the pieces are divided up are. Why illustrate your money picture with a pie chart?Ī simple way to illustrate how you spend money is with a simple budget pie chart. Evaluate & determine your ideal future pie chart.Who decides your ideal family budget pie chart?.

Why illustrate your money picture with a pie chart?.

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If you want to learn how to map out your money in an intentional way, bookmark this post and keep reading! Heck, Target has mastered an algorithm that knows you’re pregnant just from what you buy! How you spend your money is actually that powerful.

But I’m sure you could read through my credit cards statements over the past few months and get a fair idea of what kind of person I am and what’s going on in my life. We can’t fill in a week’s calendar of time slots to visualize this impact as we can with Vanderkam’s time diary. So how we earn, steward, spend, and give our money is a statement of our lives, one transaction at a time. Unlike time, however, money is relatively unlimited. She notes “life is lived in hours” to emphasize that how we fill our hours, ultimately sums to how we live our lives. Thus, a family budget is an accurate and complete pointer of economic security.In her books, time guru Laura Vanderkam highlights that everyone has the same 168 hours in a week. In this way, it makes it simpler for the family members to take a call as to which expenses to curb or wherefrom can they gather more finances to meet the growing expenses, and other such financial decisions. They provide a clear image of the sources of income and expenditure and the remaining balance in hand. Hence, family budget plan templates are vital to the economic standing of any household. The sooner they plan it out, the better is it for them. You May also See Family Budget Template Benefits of a Family Budget TemplateĪ template on a family budget plan is extremely important as a family runs on a limited budget and it is crucial for them to plan out their spending and savings. Percentages below the total category amount, show what percent of the income or expenses, come from or go to a particular category. For example, graphs show how much you’re spending and saving and the outstanding balance over a period of time. It also depends on the template format you follow to prepare a Budget Templates. Justifying your goal isn’t necessary however visualizing keeps you on the right path. Monthly budget reviews should be done to check whether it’s working or not. Monitoring the progress of a budget is critical. You can start by dividing your money into four portions: what you spend, what you save (emergency purposes), what you donate (charitable purposes) and investments (decisions related to the future). It is important to have a budget plan that’s disciplined. You’d rather wait a bit when you have prior commitments rather than hurriedly making a plan that’s ineffective. Making budgets require a lot of time and energy.

The only way to look at household finances in the eye is to control them or else, they control you. However, it is tough to make a household budget especially if the money left at the end of the month is less than your needs. They reflect the resources that are essential for a family to meet its needs and manage to have a modest yet decent living standard. Budget templates can be modified according to budgets like the samples. It sheds light onto the things the family should prioritize and spend on. Sample budget templates, help families spend their money wisely. This tool helps to plan expenses in advance, before it is spent on consumption. Download Uses of a Family Budget TemplateĪ Family budget is one which is made to meet the requirements of each and every family member.

Sample of family budget