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budgeting. They learn somehow to
live on what they have, and hope
for better days.
As one moves into middle-class
income range, it would seem
funds could be set aside for sav–
ings, emergencies and other needs.
But for many it never works that
way. Inftation, the lure of adver–
tisers and the temptations of a
credit-oriented society seem to
keep the middle class at least one
step behind financia! security.
And the wealtby? One would
thínk upper-level income families
would be the most successful of
all in budgeting. But far too often
increased financia! resources
merely mean increased expendi–
tures. With more money comes a
finer borne, automobile and ·de–
signer clothing, expensive restau–
rant dining, foreign travel , etc.,
etc. And the budget may not bal–
ance.
No matter where you find
yourself in the economic spec–
trum, it's time you set your
finances in arder. For severa!
years
The Plain Truth
has been
warning readers to learn to tight–
en their belts . The Western world
has enjoyed, overall, unparalleled
prosperity from the end of World
War II until recent times.
But the future will not always be
so prosperous. When and if
harder times come, you can–
not print more paper
money or juggle
huge ca r po-
rate funds to balance your budget.
You will have to prepare and stick
to a plan of sound financia! man–
agement.
Budgeting is learning to calcu–
late your needs in proportion to
your income. It sounds simple, but
it isn't for two reasons: 1) We often
don't have sufficient income for
what we perceive our needs to be;
and 2) our wants and desires usual–
ly overcome us and we classify
them as "needs."
Let's see if we can help you
establish a sound financia! plan .
The Budget Meetings
The first thing to do is hold a fam–
ily budget meeting. Just like a cor–
poration or government, hours of
meetings must be held involving all
facets of the budgeting process.
1 have been surprised at how
many families simply never discuss
finances . I recently asked my Fam–
ily Relations class at Ambassador
College how many of them knew
their family's income and had par–
ticipated in family budget meet–
ings. Out of 125 students only 1O
or 12 could respond positively.
College Financia! Aids officers
confirm many young adults are
lacking understanding when it
comes to money matters.
new car or for a college education
for the children must be under–
stood along with how to meet the
rent payment, buy new school
clothing and provide a weekly
allowance for the teenagers in the
family.
If
the teenagers knew how diffi–
cult it is to meet
al!
the family
desires on Dad's income, they
might be more anxious to get an
after-school job where necessary.
One of the first items of business
is for the family to understand its
fixed
expenditures- those funds
that simply have to be paid. They
include national and state taxes,
mortgage or rent payments, utili–
ties, transportation needs, a certain
amount of food and clothing and
any majar long-term credit debts.
Most families will find these
fixed expenditures consume a large
portian of their income. It's sur–
prising how little is Ieft. With that
knowledge, though, it becomes pos–
sible to understand how vital each
family member's contribution is.
But befare coming to the discre–
tionary areas of the budget, the
most important point of all should
be discussed.
Put God in the Picture
It may come as quite a surprise that
God should be the first priority in
budget discussion-but there is
nothing more essentíal.
The modern world we live in
has either forgotten God entirely
So a family budget meeting (or
series of meetings) will help every
family member understand how the
money will be spent during the
coming year. Children at an early
age can be brought into the conver–
sations. Of course very young chil–
dren won't fully understand, but
they will learn as the years go by.
Long-range goats such as saving
for the down payment on a borne, a
or has relegated him to low prior–
ity. Many budget their salaries
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and find tbey have little or noth-
!
ing left for God. "Why, 1 can't
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afford to make contributions on my ,.
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salary" is a common refrain. Gov-
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Planning can
diminish shock of large, periodic
payments. Calculate
once-a-year expenses,
divide the total by 12 and set
aside that
amount each month.