A fundamental requirement for debt-free living is that the family prepare, live by and frequently update a family budget. Writing down a structure provides a foundation for the formulation of action plans.
Action plans tend to incorporate goals which are essential for future progress.
Agreeing on a budget together removes a prevalent cause of family discord. Removing the unknown also removes a source of fear from the family environment. Members of the family can be held accountable for individual financial performance. A family budget should usually be relatively simple so that its administration is easily accomplished. The family financial authority should be flexible providing encouragement for all the members to work together for the same financial goals.