What are the recommendations for a cash management plan for a family?

Answer 1

First you have to write down all sources of income and all payments that are made and their frequency. Try to determine how much you need for other categories, like food, entertainment, etc.

When you get paid, the first 10% should go towards savings (preferably, but debt reduction if needed). The rest of the money should be put into envelopes in the amounts budgeted. If the money runs out in the envelope, you can't spend any more there (if you consistently run out in that envelope, consider changing your allocations).

You (and everyone else) also need to write down every cent you spend for a month to determine where the hidden drains on your budget are.

remember that budgeting and keeping yourself in good financial health are as difficult as dieting and keeping yourself in good physical condition. You have to make the committment and really stick with it!

good luck!