Household expenses are small relative to business expenses. Many households find it difficult to control family living expenses when they spend large amounts for agricultural supplies. A dangerous practice is to have only a single bank account for both business and family expenses. Business items are tax deductible and some of the expenses of farm or ranch living can be included as part of these expenses. While some transportation expenses for business and family living can be combined, and are therefore tax deductible, it should be remembered that they may be higher for rural families because of the greater distances they must travel to reach services in the local community.
Goals Setting family goals is a tough, but essential, task.
As with using a road map to plan a trip, the most efficient way of getting to where you and your family want to go is to plan the route before you get started. A simple goals worksheet is included in this publication. By specifying the goal, when you want to accomplish it, the amount of money needed to reach it, and what will need to be saved both annually and monthly, this worksheet can be used by farm and ranch households to reach their goals. Those producers with more regular income may choose to use the monthly plan, while producers with more erratic incomes may find it more realistic to think of saving toward goals as an annual event. Goal priorities can be noted on this worksheet by numbering goals in order of their importance.