With the rate at which inflation is on the rise daily, it has become a cumbersome task for families to meet up with managing their finances, my family for instance, normally I follow a budget on how to meet my family's needs, but lately, I can't use the same budget anymore even though there is a budget for unexpected miscellaneous, the current expenses have gone beyond the set down budget, how? a simple answer, Inflation, basic needs like feeding, housing, school fees have all doubled their prices, this has expected has taken a toll on the family finance, in times like this, it is very necessary to up your money management skill, if not, you might find yourself not meeting up with your daily expenses, even savings can be affected as well, and you know what means, it will lead to a road of financial difficulties.

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Why is money management so important in a family?

As a mum for instance, not meeting up with my family's needs will keep me in constant worry, and worrying leads to more stress, rather than enjoying the moment, spending quality time with your family, worrying about what you should have done robs you of that precious time, Money management, is about having control of your family finances which helps you reduce stress because you are one step ahead.

How can we manage our family finances

Note that before managing your family's finances, there is a need for communication between you and your spouse if you have one because they also contribute to the family's affairs, it is paramount to have an honest conversation to avoid misunderstandings in the future, you should both come into agreement on each others contribution and if having a joint account works for both of you, letting your partner know before allocating money to some certain needs, even all is important, also if you have children, planning together as a family, making them aware your goals for the family and why you need to cut down on some expenses makes them more understanding and not throw a protest or tantrum when you don't meet their desire all the time.

A Family budget is needed

Budgeting helps you monitor the flow of expenses to income, this helps us know where to make necessary adjustments, in the case whereby you are overspending on a particular need,budgeting helps us spend wisely, and also helps us save money for our future goals, there is also a space for emergency savings, all these can be achieved by monitoring your Finances through budgeting, it is all about controlling your finance, for a better future financially though saving and avoiding debts.

More on Budgeting

We know how budgeting is number one in every family finance, one basic rule in budgeting is to spend less than you earn as this keeps us in check against financial crises, how do we start budgeting?

1 Know your income

Some of us have diverse sources of income and might find it difficult to know the exact income coming in monthly when trying to budget, it is important for us to know how much we have coming in, at least to an approximate figure, as this is the first step into budgeting, it will also help us plan our expenses and savings round this figure, you could look up your previous month bank statement as a tip to help you understand how much you've been earning in the previous month, also how much you've been spending on bills can be sorted out through same process too. The main goal of going through all that process is to have money left for saving after spending on your needs.

2 Spending

Making money is hard, but it is so easy to spend, the reason why we need to be rational and intentional about the things we spend on. One piece of advice that has helped and saved me many times from impulse buying or buying things not needed is waiting 24 hours before making payment, the time duration, helps us think critically if we are making the right choice or no, before the 24 hours elapse, you can decide rightly if you are on point to spend also gives you time to review your budget. knowing how to distinguish needs from wants, your basic needs are what you can't do without like food, health, shelter, etc, and this should be a top priority on your spending list, while your want/ desire such as having the latest iPhone when you already have one, is not considered as important, instead, save for you want, one thing I have noticed in the market lately is that you can't keep a fixed figure to what you plan on spending on because prices of items go up daily, so if your income allows, you can overestimate the amount you wish to spend so as not to get stranded, or better still, run an opportunity cost to know which expenses to forgo. remember, your aim is to have something left for saving.

3 Saving

Proper management of your family finances must include savings, what are the things we save for and how can saving be achieved are the important questions you need to ask yourself.

• Save for emergencies: emergency funds are very crucial for every family, as sometimes some unforeseen circumstance can creep in on us, we don't have control over this, that is why we must save ahead, some people advise keeping six months' worth of expenses in a saving meant for emergencies.

• Have a goal: setting goals helps us know, what we are saving for, how long are we saving, also how much we need to save for that duration, as I explained earlier, this is where your want comes in, bigger project, like building a house or mortgage instead can be achieved when you set a goal for them.

CONCLUSION

Investment is achievable when you follow the right management tips in managing your finances, by budgeting, spending less than you earn, and saving, and the best part is when you have what you can invest in, it brings more income, and this can put your family on the path to financial freedom.

Thank you for reading❤❤