Griffin CPA Raymond Branton gave an educational presentation recently to Homeschool Advantage families. The topic? Setting up a family budget.
“Many people think a budget is only for people who either earn a whole lot of money or who earn so little they can’t meet their obligations. But every family should be on a budget,” said Mr. Branton. “A budget is a tool to help you set goals for how you want to spend your income, and then keep track of how well you meet those goals.”
According to Mr. Branton, there are three major considerations in planning a good family budget:
1. Put away something for savings.
“I recommend setting aside 10% of your income in savings, at least until
you have an emergency reserve that is equal to what it would take to provide
for your family for six months if your income were cut off,” Branton encouraged.
2. Eliminate credit card debt.
At interest rates of more than 18%, credit cards can enslave a family indefinitely.
If necessary, borrow against your home equity to pay off outstanding credit
card debt.
3. Be committed to aligning your spending with your budget.
“A budget can show you what it is going to take to live within your means,”
explained Branton, “but ultimately only you can make it happen.”