Ask your life insurance adviser

Dear Sir, How can household budgeting reduce unwanted expenditure?
We often unconsciously spend a lot more than we make condemning us to an endless life of cyclic short term debt to meet the deficit. Budgeting is the science of controlling what you spend to ensure it is less than what you make.
Unfortunately many of us did not study household budgeting in schools nor did we grow up hearing this being discussed on our family tables, but in today’s world, every family ought to hold a budget meeting including children not just for their input but to instil and pass on this culture to future generations. The primary goal for house hold budgeting should be accumulation and preservation of money to cater for planned or unplanned, immediate and future needs. In Europe most newlyweds open a joint account for the family right after the wedding to manage their new home as an entity on its own. Today also, you can download effective home management apps such as the home budget manager or Andro money from Google play store to effectively control your expenditure.

In her book, All your worth, Elizabeth Warren offers a simple budgeting plan called the 50/20/30 plan. This advocates for using 50% of your income on necessities, 30% on long term savings and 20% on lifestyle choices.
Any family that has cherished long term goals ought to set up a long term savings plan where money is not readily accessible to you for consumption. Life insurance endowments are one sure way to achieve such desired family goals. Prioritising saving first before expenditure is the unquestionable way to avoid wasting money. The abundance of lifestyle choices means you can never have enough money for them all unless you limit yourself or simply take on an extra job.

For more information please contact, lifeadvisor@uap.co.ug,
The writer is the Corporate Sales Manager for UAPLife Insurance.