do you agree with having a rigid family budget?

Question

and do you save the sugested 10% of income for a rainy day?

Answer 1

well rigid budget is good but 10% rainy day is too much maybe 5%

Answer 2

That depends on what you are calling a "rigid" family budget. In order for a budget to work, you have to set limits on various things and sometimes it hurts.
You have to start somewhere and if your expenses are more than your income, then you got to do without something. And there is when it seems like it is rigid.
But, experience shows that a reasonable budget is possible and there are generally alternatives that will allow you to keep within the limits that are required.
!0%? That depends on your situation. Some people have the resources to afford saving 10%. Others may not have that luxury and have to keep a modest 5% for emergencies.
It depends on the circumstances, how big the family is, how much income,and, of course, transportation expenses vary from one family to another. Not to mention if it is a two income family or a single, so you see, there are so many variables, it is tough to say whether you even have what would be classified as a rigid budget.

Answer 3

yes I'm am all behind saving at least 10%, being prepared will help you so much in the long run and the worst case is that you will have the rainy day money you never used for retirement!! I'm not saying hide it under the mattress but putting enough money to cover three months expenses in to an easy to access saving account and then save the ten% in a higher yielding money market account that can grow and you can get to easily so you won't be as tempted to dip into it on a whim. you can plan and plan and plan your budget but you don't know when the kid's will need braces or you may lose you job or the car breaks down, having the cushion of money will make a big difference. good luck

Answer 4

I see families as being very similar to a business. If you want to grow financially, you have to plan it out. It doesn't just happen, minus the lottery winners and Charlie from Charlie and the Chocolate Factory.

To help plan for your financial future, I think it wise to budget your income (present and future), your expenses (present and future), and your investments. By budgeting properly, you get an idea of what the future holds, but more importantly, you get to track your expenses and find areas that need cost cutting.

Of course, the specifics are dependent on your own circumstances and your own goals. I'm more of a worrier, so I have a tendency to save more, like 10% in 401k, max out IRAs, and save an additional 10-25% towards investments which will later be used for house or retirement or nice fancy toy.

Answer 5

Ah, i love it how people call it a 'rainy day' savings, and not an emergency fund or house savings.

It doesn't have to be rigid, per se, but if you spend your money if you dont have set guidelines, then yes. And if you save 5%+ a month you're doing well. :-)

Answer 6

a budget does come in handy
but i believe you only live once and you cant take it with you but its a good idea to save a little

Answer 7

I put 10% into my 401K plus save another 25% of my take home pay each month.

Answer 8

1) Yes.
2) No.