Family Budget Advice
Can you really afford to spend money on That? Here's easy Family Budget Advice to find out.
Expense vs Investment:
What does spending money on an "Expense" mean to you? For Bob and I, it means that once we buy something, we have to keep on spending on it. A car is a good example of an expense. Once you buy a car, you have to keep on spending on it; oil changes, tire rotations, gas, and it's value plummets as soon as you drive it off the lot.
As for an "Investment", it means to us that once we spend money on something, we will likely make even more from it. Often a home is an investment, or stocks, etc.
So our family budget advice is when you want to spend money on something; ask yourselves, "Is this going to be an expense or an investment?"
Family Budget Advice Tips
This sounds easier said than done. Money is still something Bob and I struggle with sometimes. One of our biggest conflicts is 'The Return on an Investment'.
At one time, I considered food an expense. You just keep having to spend money on it, and you don't get any return, except a bigger waist line, especially when you eat out all the time.
Bob finally agreed that we didn't have to eat out everyday. We could actually make some pretty good meals ourselves.
But, here's where I had to compromise...
Sometimes eating out, is an Investment. Especially with your kids. We have dressed them up and took them to a 'fancy' restaurant. Okay, one with a waitress, not a till, but they loved it and we taught them appropriate manners in a nice restaurant.
After piano exams, we took each child out for their own donut, for playing their best. Investments.
So talk it out. Even the $20.00 purchases add up so make sure they are investments more often than expenses.
Oh, one more example from Bob and I. I considered lots of fancy shirts, make-up and hairdo's to be expenses. Not Bob. For him, they are investments in myself...and then he gets the Big Returns! So be wise in your spending and find ways to be flexible and compromising.
It's good family budget advice. Now, go for a free walk or cuddle on the couch! It our Best Family Advice.
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Coins by Joe Shlabotnik.