#1: Establish Your Family’s Financial Goals
Without written financial goals your family have no control over where they will end up financially. Create financial goals by the week (short term), month (intermediate) and year (long term). After mastering this process, write down your family’s financially goals for the next five years, ten years and twenty years.
#2: Estimate Your Income
Base your estimation on your family’s average monthly income. Do not over estimate. Over estimating your family’s monthly income stimulates overspending.
#3: Create Your Family’s Budget for Giving, Savings, and Emergency
Your ability to increase wealth is based on your giving. Your family’s ability to give their talent, money, support and kindness to the needs of others is the best investment for long term care. The ability to save and prepare ahead of time for emergencies is another powerful way to position your family for success.
#4: Budget Your Fixed Expenses
Fixed expenses include items such as; mortgage payments, auto loans, life insurance education funds or any expenses that do not fluctuate or change.
#5: Budget Your Family’s Variable Expenses
Variable expenses include normal monthly expenses such as; food, clothing, utilities, transportation, health care, personal expenses, entertainment, upcoming family vacations and all expenses that fluctuate monthly.
#6: Record Your Spending
Keep a spending diary to track your family’s daily spending. It is impossible for your family to control their money if they are unable to measure it. Provide a spending journal for every family member who spends money out of the family’s household income.
#7: Review Your Spending and Savings Pattern
Invest time weekly to review your family’s financial progress with your spouse and children. Use this time to review the family’s financial goals and revise their individual spending plan for the upcoming week. Do not allow any spending to occur outside of your weekly plan. All new spending must be reviewed and agreed upon at the next weekly financial meeting before allocating funds.