Household Budget~

Budget = Simply put a budget is a plan for spending the income.

Anyone can get rid of an income. It takes careful planning to get full value out of an income. Some persons think that budgeting an income means merely saving. It should mean saving a reasonable amount, but it should also mean getting out of your money that which you most need and desire.

When an income is budgeted, wasteful spending may be discovered and checked. A budget makes a person know what can be afforded and what cannot be afforded. A budget makes one’s mind easier. When a definite plan is made for spending the income, there will be enough money to pay the grocery bill, the taxes, and such accidental expenses as doctor’s bills. There will be no worry about having money to pay for the necessities.

The advantages of following a budget are:
1. Getting out of the income that which you need and desire most.
2. Discovering wasteful spending and checking it.
3. Knowing what one can and cannot afford.
4. Freedom from worry regarding necessary and emergency expenses.

In order to follow a budget, it is necessary to keep accounts.
Example:

Church
Savings ( rainy day fund)
Housing
Utilities
Food
Transportation
Schooling
Clothing
Insurance/ taxes
Entertainment
Gifts
Other Misc.

The way money is spent in a home plays an important part in the success of a home. Indeed, happiness that should pervade every home may be blasted because money is unwisely spent. Following a plan for spending the family income has helped to make many families successful and happy.

A good policy to follow is think twice before spending once.

~ taken from one of Heather’s old old books here at the house.
~ title ~ Foods and Home Making by Carlotta Greer (head of the Home Economics at John Hey High School) 1931

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Published in: on December 17, 2009 at 9:13 pm  Leave a Comment  

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