Management of Money

Management of money is an important component especially if you are running your own work at home business. If there is one thing you ask about what is the most important, I would without doubt, it's the management of money again.

This part of the management is divided into 2 parts and that's one for the business and one for the family. It's recommended that do not mix the business budget with the family budget. One budget is for running your business while the other is for the family only.

A separate budget and account for business allows you to really see clearly your business expenses and income. Mixing these two will jumble up the numbers and confused the picture. How do you start your budget for business, you can findout a lot from just going to Google to do so. Actually the budget is not really different from a family budget. A budget clearly sates you source of income and expenses. Speaking of starting a family budget, there are lots of places to learn how to do it.

Doing a google you can find good guides on how to do it. Where do you start to create your family budget. A quick check in google reviewed that to start budgeting the first step is collect or gather information. The important information includes your and your family spending habits. According to Foxway Free Budget Plan ,

Step 1 includes the following : -

Step 1

Begin by getting your information together. You are going to create a household budget but you have to know what you make and what you spend. Gather your last three months of pay slips and bank statements. Print out the blank monthly personal worksheet. You might want to print at least two or three of them for each family member. Then start filling in your monthly home budget worksheet using the average of what you spent over the last three months for each of the categories listed and for each family member. Then insert the lowest amount you were paid for each of those months. For example, if your pay was $2,000, $2,200 and $2,400 for the last three months, then you would use $2,000 as your pay figure. Use a little common sense in this. Usually people are paid the same amount each month, so just use what your normal monthly pay is. Another example, if your electric bill for the last three months was $50, $60 and $70, it would be okay to use the average of $60 as the monthly expense.

Remember, you are just checking what you have been spending, not what you intend to do. This first worksheet is just to determine where you are now in your spending patterns. Add more categories if you have other expenses that are not listed. Just be sure to list everything.

The above is just an extract but the site provides very detail steps in working out your family budget. For a more simple steps description, this site family budget for beginners has a very simple breakdown of the steps involved. I think the steps are easy enough to get started.

Now very likely you will want to have a worksheet to work with. I saw one which is easy to print out and you can follow the format and add or delete the details to suit your particular situation. I like to get the ideas from the sheet and put it into a spreadsheet like excel and work from there. You can get the household budget from here at this link.

Anyway that's about all and hope this post has been useful :)

Just Did not Realized..

I thought it was a new requirement when I saw that everytime I post and publish I had to type in the numbers or letters of an image. I knew that such images are meant to counter spamming and I did not realized that this blog had been picked by blogger robot as a possible spammy blog.

Anyway out of curiosity I clicked on the text that said "Why I need to do this", only then I realized what had happened. So naturally I requested a review and well thank goodness it's cleared now. Ha..ha..thinking back I was wondering how the robots determined that this blog is up to no good.