budget plan

Ahmad 3

Maria Ahmad

ECON 103

Professor Ezeka Hyacinth

June 16,2020

Family budget letter

Dear mother,

Thank you so much to the love, kindness, generosity and unpayable care you have shown unto me since birth. You have spent your resources and invested so much and denied yourself the luxurious things of the world to bring a caring and responsible adult out of me. My sincere appreciations to you for teaching me honor, respect to other people and as well as respect to their opinions, believing that I can and being kind to everyone may it be a young person or old ones. Most of all, you have been the best excellent role models have ever had. I am proud and such a lucky person to have been blessed with parents like you.

Having been spent all time with you at home, I have noticed that we have been having so many financial challenges as a family which sometimes results in chaos and quarrels. These challenges have been occurring because we as a family we don’t have proper financial planning and budgeting. Some of the financial problems we have been facing include:

Lack of enough working capital. This s because we have been depending on a paycheck to paycheck only. To avoid this, we should figure out a way in which each should be cutting his/her cost by either 10% 0r 20% to put that aside in building working capital up.

Inconsistency of cash flow. The amount of salary we all receive is not enough and I urge if we can now focus on developing based projects outside the normal work we do. In that way, we shall be having extra money and cash flow will be consistency. We always have a lot of bills we do not pay them in time. This is because of not having a budget plan.

To overcome all these financial challenges, I thought it's a good idea that we start preparing a household budget. This is because a well-prepared household Budget plays a very key role in our financial lives and if we do not have it, we can face a lot of financial problems. A well prepared and a proper household budget teaches family members the worth of money. It helps family members identify the areas they spend hence helping them to truncate the items which are non-essential and unnecessary. Often, household expenses do increase continually out of control because we don't have ideas on how total outgoings of the family are created. Therefore, if we bring a household budget in place it will help us bring things under control.

Another importance of having a household budget is that it will be alerting us against cash flow problems that might occur in future. For example, it will be letting anyone from the family know whether he/she has more direct debits from the bank account than his/her wage can cover. Once alert4ed, the kit will be easy for one to take necessary measures like getting a small loan or to overdraft to cover the deficit or get in touch with the respective company regarding the debit so that one can change his plans of payment. It will also give us take credit cards which are affordable to avoid us landing into serious debt problems.

I hope that you will take my idea of helpful and not offensive because I know you as understanding and parents who believe in changing for the best.

Sincerely,

Maria Ahmad