Business and Finance Lectures

Archive for the ‘Family Finance’ Category

Since the economy is always dynamic, plans should be flexible. The fundamental rule says, “evolve or disappear.” All plans that design, no matter how good or effective they are at any given time, can be ineffective and even failed in other circumstances.

The family must adjust their balance sheets, plans and strategies to changing situations. We must be prepared for low-income, tax increases, job loss, but also for positive things like the success of our investments, which, even positive change, alters the balance of our initial calculations.

Finally, it is very important to have family communication, which are never in doubt and that all members cultivate a healthy curiosity about economic issues as part of the family finances is to start a good financial education. Every family is different and can not be designed or follow a standard plan but the planning must be based on specific needs and goals of each particular case.

After the balance can devise strategies for better management:

• To decide what to spend. It is important to agree to spend less than you earn. To avoid financial problems, most healthy is moderation in household expenses and save money over.

• What about debts? When you have debts, and liquidate completely at one time is not always as convenient as it can destabilize the liquidity of the family and leave it unprotected in the event of a sudden. A good strategy is to repay debts gradually and when surpluses in household expenditures rather than liquidate the debt in full and remain at zero, you can open a savings account to prevent eventualities. When debts are controlled need not affect financial stability.

· The joint bank account. When it comes to a family where most members have the maturity to make good decisions, joint checking accounts may be a good financial instrument that allows greater control. Such accounts allow us a more detailed record of our operations since in the book are recorded the checks issued to the amounts and beneficiaries.

• Plan to medium and long term. When all the members involved, it is easier to start planning the future. The family must set goals and express their hopes and dreams for the future. Parents can create awareness among children about the importance to start saving as soon as possible thinking about events in the medium and long term such as college education or retirement.

· Insurance of life. It also talk about life insurance and will. Although it is very difficult to think about issues related to injury or death in the family, it is important to inform the family about the measures taken to protect the assets even before the eventualities of life.

Manage family resources more efficiently to organize your spending and priorities

Managing a home can seem complicated, especially in regard to finance. Not always easy to organize when the decisions made will effect on more than one person. However, one of the best ways to get your family to reach the desired success is planning as possible beforehand.

The first thing to consider is to give our loved ones a “good life” does not necessarily mean buying expensive things but to manage our finances so that the whole family can sit back and enjoy what their chances allow.

To achieve this you need a plan in which all participate according to their age and responsibilities. It is advisable to meet for a household balance sheet. In the balance are recorded income of family members who are in a position to provide it, and the cost that everyone participates in the family economy.

• In the category of income (or assets) should take into account both parents’ salaries as the properties (houses, apartments, land, commercial premises, etc.. To provide an income)

• In the liabilities to be recorded basic expenses like food and clothing, but also others such as schools for children, rent (if home is not their own), paying more recreational or extracurricular activities (sports, music lessons, sports, etc.) mortgage payments, credit cards and other debts. At this point it is important not to forget the taxes.

Once the family has done its balance sheet, you can see more clearly what are the necessary costs, priorities and large or small luxuries that can occur. If liabilities are greater than assets, taking stock will enable all family members understand how money is managed and children, to feel included in the financial life of your family can better understand decisions parents.

In many families, there is no adequate notion of expenditure or income. A family that cares about proper management of their resources to do its own budget. The family budget is not a magic wand, but miracles: It contributes to the family achieve its goals more quickly. And once the budget is done, it should be no discipline for leaving their boundaries.

Assess family income

To know how much we spend, we first need to know, as we have available. How much is the income of the family? If we are spending nearly all of what we earn, we can not think of taking on new financial commitments. Remember that you can not have all their income, but only with the money available on hand.

Determine fixed costs.

Normally, when the salary comes to the hands, and suffered tax breaks, social services, etc. Now we need to make a list of all expenditures, separating those who have to be paid each month as water bills, electricity, telephone, rent, home mortgage, school fees, etc. They should also be included the cost of food and transportation.

Another list will be expenses such as dentists, doctors, medications, extra expenses such as car tax (or insurance), clothing, school supplies, etc.

This total must be calculated for a semester or a year, divided among six or twelve, to know that that amount should be reserved each month to have that pay the bills once they arise. In the case of a difference between what they earn and the solution is to analyze the costs and evaluate the two possibilities: 1) items should be eliminated or reduced.

How to use the money? There are several ways of thinking about it. One of the things that are affecting marriage financial problems. In a society that encourages the growing consumerism, we need to discriminate what is really necessary. We enjoy a good socioeconomic level, without affecting the most important things like joy, honesty and peace of mind.

1. Basic Principles.

Although family situations vary, in all cases, there are some principles that can be applied. Which are recorded in the Bible and serve to guide us in the material:

a) All we have belongs to God:

“To the Lord belong the earth and its fullness, the world and those who inhabit it.” (Psalm 24:1). If everything belongs to God, then what is in my possession also is from Him and I was confident that I can manage and take care of this.

b) God gives us the ability to earn money:

“… Remember the Lord your God. It is he who gives you power to get wealth … “(Deuteronomy 8:18).

c) Many things are more valuable than money:

“A good name is more than great riches, and being appreciated, rather than silver and gold.” (Proverbs 22:1).

d) The greed, dissatisfaction and concern with material things bring unhappiness.

“You shall not covet your neighbor’s house, do not covet your neighbor’s wife, nor his manservant, nor his maidservant, nor his ox, nor his ass, nor anything that is thy neighbor.” (Exodus 20: 17). This does not mean that the property itself undesirable, but spends inordinate desire to possess the values of the individual.

e) We use the most of our abilities, serious and honest work.

“The slack hand impoverishes, but the hand of the diligent maketh rich.” (Proverbs 10:4)

f) You need to know to live with what you earn.

“Render therefore to all those who must … Owe no one anything …” (Romans 13:7 -8). This means not spending more than we receive. We must be careful not to assume financial commitments that go beyond our financial condition.

g) The family needs a budget plan.

For the family to have enough for themselves and for sharing with the needy, you must have a plan. “For which of you wants to build a tower, sitteth not down first and count the cost to see if he has enough money to finish it” (Luke 14: 28)

Within the Christian family’s home there are some issues that are difficult to treat. One of them is financial. How does the money should be distributed, What things must be bought every fortnight, What things are not important enough to buy into these days? These and other questions are very common in homes. Whether that is a marriage of 25 years of marriage or a couple just starting their life together. Almost everything we need help and guidance in this area.

In this study we will see some principles that the Bible teaches about the proper handling of finances.

In the book of Proverbs we find some guidelines that can be useful to evaluate what things are important and which not to spend time. This study evaluated some passages that dictate to us where we invest our money.

1. Honor God with property (Pr 3:9-10.)

The first thing you find in the book of Proverbs, which talks about the finances are these two passages that say:

“Honor the Lord with thy substance, and with the firstfruits of all thine increase, your barns will be filled with plenty, and your vats will overflow with new wine.”

Before going to consider this passage will be good to start thinking about that as this passage. In verse 1 and 2 Proverbs 3 we read “My son, forget not my law, and your heart keep my commandments: For length of days and years of life, and peace to thee.”

Currently there are many couples where both members work. However, not everything is “rosy”, and may present problems that must be recognized and try to avoid.

Advances in the role occupied by women in society, coupled with the economic crisis being experienced by several countries, means that many women become employed or independent workers, to add his salary to the family income.

While this is very positive, is not entirely without problems, and it is a fact that when the income comes from both sides, conflicts can arise that did not exist (especially when the woman earns more than men), so the couple would need to try and work the problems that might arise in the future, before the same are extended and go beyond the economic sphere: this will greatly reduce some potential problems.

There are some questions that all women and men who are in this situation should ask themselves, regarding what has been stated here. It is important to know that the answer should always be their own and not influenced by their partner.
Everyone naturally believes that his or her career is above many other things, which is true, but only partly. Therefore, first, must sit still, and talk about the challenges ahead.

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Many couples have differences when it comes to money. If you are not part of the exceptions that prove the rules, please read the following article.

Speaking of money
If your partner has always handled the bulk of economic issues may seem difficult for you to get involved in it. The first step is to start a conversation with your spouse about your desire to know more about the assets and debts of the house, and to shared decision making. Ideally to start this conversation, is to choose a time and place without high levels of stress. Try to raise it in a positive way, not in a tone that seems of complaint or accusation.

Continuing
It is never pleasant to think that something bad can happen to people you love. However, you must be responsible and accept that your partner may, for any force majeure, not to continue intervening in financial management, so that all tasks would be in their hands. Therefore, you need to have access to all records and financial documentation, as well as fast access to all account numbers where savings are deposited.

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