Most of us city dwellers live in what is called a nuclear family setup. We rarely have more than four family members and in some cases, all of them are working too. These members can reduce or increase, depending on the family composition and member’s priorities. For example, in case there are brothers, chances of family size increasing are high as bot will get married eventually. Similarly, if there are girls, the family size may decrease when girls get married. One more scenario is the case when one family member has to stay away from the family. In any of these cases, your household budget can go haywire. So, read on as we tell you about the factors affecting household budget of your family.
Factors Affecting Household Budget Of Your Family
Factor 1: Where You Stay
This may be one of the biggest factors affecting household income your family. As a personal experience, I can attest to the same. It is simple to understand. If you live in a place where population density is low or it is not well-connected with nearby areas, chances are you will get a house for a low cost (or low rent). Provisioning of supplies such as grocery items will then make up for the rest of the expenses. However, if you are staying in a colony which is well-connected to nearby areas and points of interest, you will have to pay higher amount to acquire or rent the house. Remaining expenses will only drive the cost up. Hence, the place where you live has a direct impact on your household income.
Factor 2: Where You Work
Certain jobs offer more chance for you to grow financially. Financial growth means that you can contribute more towards you household budget. This is the reason why certain households are able to do better than others. This is not to say that your family cannot do better at managing household finances. It is more of a case of a family of four where everyone can contribute Rs 15 against another family where its four members can contribute Rs 10. More resources mean you have a bit of free hand to do some extra expenses once in a while.
Factor 3: Working Members
On any given day, a family where all of its members are working can have a bigger household expenditure budget. This is because when the burden of expenses is shared among the members, nobody feels its bite as much as when only one or two persons of a family are earning. This has a double effect of enabling all individuals to spend on themselves instead of contributing and then withdrawing money from the family budget. This way, the family budget mostly stays untouched, no matter what. Hence, it is one of the crucial factors affecting household budget of your family.
When it comes down factors affecting household budget of your family, the above-mentioned one are quite important ones. Why? These cover the bit where we might have talked about dependents in the family, annual savings, etc. With more members of a family working, there is less stress on a family to make its ends meet. The purpose of this article is to make your understand the role of each family member. Do take note and live happy!