Want any of the deals? There is nothing like this question to illustrate how difficult it is to be a consumer in a world of abundance. Even if you managed your shopping at the supermarket with dignity and did not give in to all the tempting and unnecessary deals of “buy, add, receive”, or “the fourth package for a shekel”, the cashier does not despair and continues to try you until the very last moment.
Modern life invites a variety of entertainment and waste centers, and the ruthless material competitiveness does not really make it easy for us to resist temptation. As a result, we consume, buy and spend, sometimes without even thinking about the amounts we spend. Add to that the credit card that blurs the feeling of actually spending money and you have a tested recipe for overdraft at the bank. The only way to combat this effectively: managing the family finances. Your family is a business that makes a lot of money – and not managing the funds is a real failure.
1. Identification of economic mines
What causes us to lose control of our spending? A lot of factors. We will list some of them:
Caution excessive consumption!
Many factors encourage us to excessive consumption, the flourishing of many companies and businesses in the fields of food, clothing and communications, and the huge supply of products. Aggressive and tempting sales systems operated efficiently by trading entities, the ease with which purchases can be made online or by phone, and the various means of payment that blur the feeling that a transaction is being made for which payment must be made.
From fire extinguishertobeard
Already at an early age, children and youth begin to become outstanding players in the world of consumption. The age at which desires to purchase develops is decreasing, and household members are required to make financial decisions and manage their money – even if it’s “what to do with the money I saved on babysitting” or “how much to invest in buying Supergol cards.”
A variety ofoptionsfor financingconsumption
If in the past the bank was the only financial address, today the family is forced to face other entities such as credit card companies and insurance companies, which tempt and offer a variety of options for financing our consumption. Instant loans and the credit card placed in each person’s pocket allows him to make purchases of thousands of shekels in an electronic transaction that takes seconds.
Lack of time
Our generation is characterized by work that lasts many more hours than the previous generation. Sometimes it seems like we don’t even have time to prepare our own food, so time to organize our expenses and income?
2. Minesweepers: balancing the budget
According to data from the Central Bureau of Statistics (2019), the average net household income is about NIS 17,276 per month and the average expenditure per family is about NIS 16,475 per month (including the estimated expenditure on owned housing services). However, this figure does not indicate that most households benefit from this wage. In fact, most employees earn much less than that. According to the Taub Center’s State of the Nation Report, spending is higher than income in 80% of Israeli households.
In such a complex reality, each of us requires deep thinking and early and informed planning of expenses. Managing the family finances, controlling the family’s financial conduct and being aware of our expenses are a cornerstone of financial independence. The ability to conduct ourselves correctly or to emerge from a murderous overdraft to financial freedom depends on our ability to balance our income and expenses.
3. Where do you start?
1. Reflect the financialsituationof the familyby carefully recording all expenses and income.
Expenses:
a. Check at the monthly level the payments for which there are receipts (phone bills, electricity, etc.).
In. Estimating the amounts of payment for other expenses (food, medicine, etc.) that are tracked is usually more difficult.
Revenue:
All income of the family must be recorded. Don’t forget income like social security, gifts from family members, etc. This provides a full reflection of expenses alongside income. It is important to emphasize and reflect the monthly gap between expenses and income. Start by collecting and mirroring.
2. Creatinga balancebetweenexpenses and incomebyformulatingan individual economicplan.This is the second and decisive stage. After the family is familiar with the structure of its expenses and income, according to the various sections that appear in the monthly expenses and income form, we approach planningthe family budget , where the basis of planning is the family’s income.
When you have a family budget, you are not only financially balanced, but you succumb less to promotions and temptations and conduct yourself wisely and wisely. Believe us: you’ll feel great about it.
