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Where did all
our money go?

During dinner one day...

	Darling, I think we need to re-adjust our family expenditure. Now that we have Bibi, we seem to run out of money every month.
	Don't worry hubby, we have enough savings in the bank.
	That is for emergencies, dear. We need to have a proper financial plan. Failing to plan is planning to fail.
	That's right, son! You need to establish a family budget to better monitor your spendings, just like I did when I raised you up.

Not many families in Singapore have the habit of setting up a family budget. It is important that families monitor their spendings through a family budget as many money-related stresses come about due to poor budgeting habits or lack of planning.

Like Mrs Lim Tai Tai, it is easy to assume that you will always be able to afford all the little luxuries in life, as long as you have enough savings in the bank. The problem only hits you when the bill arrives at the end of the month, and you find you have difficulty coping with the many demands on your family income.

Where did all our money go?

4 EASY STEPS TO PREPARE A FAMILY BUDGET:

	Create a list of all your monthly income (what you earn).
	Create a list of what you plan to spend (targeted expenses) and a list of all your actual monthly expenses (what you spend). If your expenses are not incurred monthly, prorate them on a monthly basis. For example, if you have paid $110 for a TV licence at the start of the year, this is equivalent to $9.17 per month.
	Set aside a fixed amount of savings every month. As a guide, you should have savings equivalent to 6 months of your salary as emergency funds at any point in time.
	Develop a budget and follow it in a disciplined manner.

Getting Started – My Budget Template

Fill in your current monthly income and your targeted and actual expenses in the Family Budget Template provided here. It is important to involve your family members in drawing up a family budget so that everyone understands the importance of this exercise.

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