Who What, When, Where, Why and How

Now we shall look at the "Who, What, When, Where, Why and How" part of the discussion. These form the dynamic, interacting and inter-dependent elements, systems and processes that form "family budgeting."

Who? Every family situation is uniquely different and distinctive. There is no one-size-fits-all answer and solution for everyone.

Some of the tips in this guide might apply to your unique means and circumstance, and others may not have any significant impact or practical application at all.

In general terms, you will find handy ideas, hints, process steps, practical savings suggestions and budgeting that might have gone unnoticed before.

The information provided is general and should be evaluated on an individual and contextualized basis. Remember to consult a financial advisor when making fiscal decisions that could affect the financial health, well-being and future of you and your treasured family.

There are various different families in question here too: single-income, single-parent, blended and/or extended families, double-income households, stay-at-home mothers working part-time from the home to make ends meet, social-supported and/or subsidized families, families at risk, divorced household with shared parenting and financial responsibilities, debt-ridden or bankruptcy families and numerous others. We hope to offer something for everyone.

What? Family budgeting is a structured process and planning activity, dealing with a family's financial resources and context.

This hands-on approach puts expense items into categories as another helpful strategy. This is done to get a better handle on the current situation and offers somewhat of a reality check to most that choose to undertake this journey.

Some of the categories could be:

• Obligations - list each item under headings like: home: mortgage or rent; association fees and professional dues; insurance: health, auto, home, renters' and life; tuition, day care; loans: car loan, student loan, bank fees and interest; taxes, property taxes and so on.
• Necessities - again list each item under headings like : food, groceries, gas, yard maintenance, security, pest control, utilities: gas, water, electric, garbage, sewer; school lunches, household supplies, car maintenance, monthly parking, housekeeper, household repairs, internet service, dry cleaning, cable TV and more.

• Pocket expenses - treat this as a whole category, covering: lunch at work, snacks, sodas, coffee, drinks, parking, tolls, newspapers, magazines, batteries, postage, shipping, mail
• Family Allowances - another whole category including items like : parties, entertainment, weekend outing, movies, concerts, other entertainment and events, home improvements and decorating, magazine and other subscriptions, dining out and fast food, furniture
• Personal allowances - clothing, hobbies, personal recreation, books, CD's, manicures, hair, alterations, shoe repair, personal gifts, luggage, night out with friends, gardening, films, processing, video rentals, sports/recreation, family gifts, contributions, donations, computer software and other related items.

When and Where? In the interest of brevity, we combine the next two facets. Our best assessment to answering when and where the best place and time would be to start a family budget would be to answer unequivocally: HERE AND NOW!

It demands attention as it directly affects our daily lives and well-being. Without delay, hesitation or postponement, we need to step up and protect our family interest, financial health and future.

Accounting brings accountability! A wealth management guru is often quoted as saying. This rings so true. It is hard to ignore, if we are confronted with objective cold hard financial facts that tell us that we are in trouble.

Why budget? Families, as mentioned before, have diverse reasons and motivations for budgeting. Briefly summarized, people budget for a couple of reasons:

• To gain control of their financial life, monthly bills and spending
• Be prepared and avoid surprises
• Save for a major purchase
• Opt out of a vicious circle of ever-spiraling debt or spend-now-pay-later thinking
• Expand their lifestyle(s)
• Retire early
• Eliminate money as a source of tension and topic for argument
• Rediscover that the best things in life are FREE!
• Becoming self-reliant and empowered to know that debt does not rule their lives anymore!

We promise even more on this a little later!