When the world economy was booming, business and families where in a spend spree and there was laxity in spending, corporate governance, regulatory surveillance and controls. This has resulted in a mountain of debts in both family, corporate and government circles. Consequently, people are losing jobs in millions all over the world as businesses are folding.
The question now is how could families manage the family financial in a time like this and avoid falling into future quagmire because of squandering future family money. Families were lured into spending frenzies by Shylock soft loan lenders that hid under ostentatious good dealers to dish out the loan with well hidden fine prints that tend to hang the unsuspecting families who as a result spend beyond their family budgets and or even personal budgets. In the process many families with children have lost their family home. Though, spendthrift families are also not innocent as quite a few of them never built nor used family plans and family budgets. Some never even sought family help when they became aware of their circumstance in their family financial.
Now that the veil is uncovered, families may take some steps including the following, in preventing the occurrence of future financial hardship:
Family Financial Planning And Budgeting
Families should plan in advance how much they may spend during the following 2 to 5 years in line with their expected family income during that period. In doing this, they should make allowance for any shortfall in their expected family money in that period. They should also put together their expected expenses in the coming 12 months matching it with their expected family money they will receive in that period making sure they will not spend more than they would receive.
Using Family Templates Or Family Sheets
Using family templates or family sheets they should continually monitor the budget so that they are not spending more than they plan to. Where they find some item(s) in the budget are going up more than expected, like family bills, they should adjust expenses on other items that they could reduce or forgo. Having the family planner is good but having the discipline to follow it is best for families.
Buy Only What You Can Afford Today
Families should avoid enticing lending gimmicks and buy-today-pay another time interest free scorns used by dealers because there is never free lunch. Behind any of this there are always hidden condition that profit dealers and their embedded lenders. The key is buying only what you can afford today if it is practicable.
Government Assisting Families
Governments should also assist in ensuring that families are maintaining financial discipline by providing some assistance in this. From time to time government should consult with the family about their financial management or even provide family forms requesting information that would help them assist families in managing their finances.