When starting to organize the home budget, a set of main short and long-term goals must be set in order to control the daily, monthly and annual expenses, and this is by developing a plan for each of the expenses and savings during the next five years, as this plan can guarantee the provision of a large amount that guarantees the purchase of a house, or A car, or saving for the future of children, with the necessity of separating the necessary needs from the luxuries, as these needs include both clothes, food, and drinks. As for luxuries, they include going out for a walk, or going to a restaurant, or buying beautiful clothes and others.
Keep a journal to organize expenses
A small note must be kept so that it serves as a monthly financial book, in order to record all expenses in it, so that these expenses include both electricity bills, groceries, and phone bills, in addition to unexpected expenses, with the need to identify the various sources of the interior, whether the husband’s work Only, or the work of both the husband and wife, or other sources of income, with defining the various debts and monthly installments, which include both credit cards, bank loans, car installments, as well as electrical tools, and here the person is advised to give priority to paying credit cards or visa; This is because it has a higher interest rate, and it is recommended that you do not use it again unless you pay the previous amounts.
Follow a 25% strategy for creating a home budget
Organizing the family budget using the 25% strategy is one of the recommended strategies for organizing the monthly income, and it is as follows
Determining a quarter of the family budget in order to pay off debts, with the need to avoid taking a monthly loan for the purchase of a car or electrical appliances in an amount exceeding 25% of the total family income; Because this is one of the risks that the family should not enter into. Allocating 25% of the total income to pay the expenses of the apartment, and here you should pay attention to the need to avoid renting a house so that the monthly rent exceeds the specified percentage. Allocating 25% of the total income for living expenses, including food, clothing and drinks. Allocate 25% of the family budget to saving, and keep it in order to achieve the family’s goals, and save it for emergency expenses or put it to go for summer vacation.