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Drawing up a family budget involves two kinds of planning: long-term and short-term. Short-term planning covers current expenses. A long-term balance, on the other hand, is drawn up for a year or more. It is also important for raising the level of financial stability. Long-term planning lets you avoid unforeseen expenses.

When making plans for a year you must take into account all items of periodic expenses. They should include costs of rest, buying household appliances, repairs and buying housing. But there is one planning secret worth keeping in mind. As a rule, we buy necessary expensive things when the need arises. Only after feeling the need do we think about buying and start saving money, which puts a great strain on our budget.

To avoid this, you should use another method. When buying a product we can find out in advance its approximate service life. And, going by when it ends, we can do our planning. For example, if the service life of an iron is five years, this should be taken into account. That is, remember that when the service life ends, the equipment may break down and you will need to buy a new one. So when the time comes, you should create a target fund for buying it.

But do not forget that equipment may break earlier or later. So you need reserve funds, which will consist of contributions of 5% of monthly income.

Savings funds are the basis of long-term planning. Forming them is the main task. Long-term planning gives many advantages:
<ul>
<li>avoiding unforeseen costs;</li>
<li>confidence when making expenses;</li>
<li>laying a "foundation" for financial growth.</li></ul>
From all of the above we can conclude that long-term planning is very important and deserves special attention. To create the necessary balance and control that it is kept to, you can use the "<a href="/en">online home accounting</a>" service. It will let you control your financial flows, which will later allow you to reach a new level. Besides expenses, the plan should also include expected income. But only current income should be counted, because one-off receipts cannot be predicted.

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