Thursday 18 January 2018

Good budget can get you out of a jam

Jam-jar financing is needed to get out of this personal financial pickle

In days gone by, it was the jam jar that served the central role in the money-management systems of many people.

Today, we call it income and expenditure. And, while the names may have changed, the principles are largely the same.

Personal budgeting plays an ever-increasing role as families struggle to cope with economic conditions.

And, while there may be statistical improvements within the economy to a point where an end to the current meltdown can be declared, many people are still facing serious difficulties.

Providing the tools and support structures that allow people to plan and manage their finances is vital.

Over the last 15 years, managing household finances using budgeting tools was a low priority. That has all changed.

Financial support resources that are being made available to banks should at a very minimum be matched with informational and educational supports that help those in debt plan for a recovery in their personal situation.

We have returned to the days of jam-jar finance. With the right approach and the right supports, there is little reason why we cannot return to stability, but a more sustainable one would be preferable.

Teaching people how to budget and how to prepare income and expenditures for their own households could be the basis for a fresh beginning.

Now where did I put that jam jar?

Irish Independent

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