Make a Difference with Wisdom

We know how difficult it is to earn the money we produce with the effort of our work, so we must be cautious with this resource that cost us so much effort to get; for this purpose, a life goal should be the administration with wisdom and try to make the best possible use of our finances, all families must learn to make a budget and learn to adjust to what we set up there.

In the first place, it is necessary to divide a sufficient amount for the family’s feeding; once this need has been satisfied, the second place must be the house; then the transportation costs, the following line is occupied by the education of the children. The next chapter must be clothing and footwear; the next to the last line is the payment of services such as gasoline, gas, electric power, telephone, and fun and recreation.

Once primary needs have been taken care of, the next goal should be creating a special fund in which medical care is taken into account. The next place is occupied by wishes such as vacations and other important, but not vital things and unforeseen expenses.

In every far-sighted family, there must be a budget item for savings and investments because the key to having a vision of the future, especially in the stage of life known as the accumulation stage.

We know that it sounds challenging to comply with all this, but an excellent formula to meet this should be to divide 50% of our income to cover the needs, 30% to meet the tastes, and 20% to invest in savings.

We must all have a short-term plan that protects income and property in case of illness or injury. However, we must also have a long-term strategy that protects the family and its goals in premature death. Therefore, it is convenient to consider the immediate need for cash, final expenses, or death.