Case Study: Five steps to getting your finances in order
Published 23/08/2011 | 05:00
Meet Paddy, Geraldine and their family.
Paddy is a dairy farmer and Geraldine works part-time in their local pharmacy.
They have two children, Sean and Helen, who are both at primary school.
At the start of the year, they prepared their family budget, using a simple and effective five-step process.
As Paddy is a farmer, his income fluctuates. Therefore, the family needs to carefully manage its finances to ensure that it can pay the bills as they fall.
•Step 1: Income -- Put down the expected monthly income for the farm, any off-farm work, benefits and social welfare payments, dividend income from shares, cash gifts and bonuses.
•Step 2: Recurring Household Expenditure -- This represents costs that occur regularly. Note that a plan should include increased fuel usage costs over the winter months.
•Step 3: One-Off Household Expenditure -- This represents costs that usually only occur a few times each year.