Regular assessment of your household finances is vital to the family‘s financial well-being. Here are some guidelines to control your household finances.
Use your credit if you have one. But, remember to pay your outstanding balance, not the minimum amount, before its due. Utilisation of credit card should be done wisely.
Rule of Thumb
If the total household expenses is higher than 33% of your household income, it’s time to cut down on expenses. Here are some tips to lower your expenses.
1. Cleaning of air-conditioners should be done regularly.
2. Wash your laundry on full load.
3. Place thimbles on your taps
Allocate Book Keeping Reponsibilities to Your Children
Do you have children? Reckon of assigning simple tasks such as data-entry to them. This will make them know basic financial principles. It will also teach them to become responsible and promote excellent financial practice.
Organize Your Financial Statements
List down your finances. Have a notebook or a ledger. If you have an access to a computer, organize the physical bills and statements by putting everything into a spreadsheet. You don’t even have to pay up cash for a spreadsheet.
Here are some tips in organizing your financial statements.
1. To save time from entering data, get soft copies of bills and statements, if possible.
2. Back-up all your files, save them into CD-R or thumb drive. Then keep them in a secure place.
If there is only one in the household is working, and there is not much sources of income, consider an insurance plot for the breadwinner. Financial worries are not something your family should cope with in the event the sole breadwinner is incapacitated.
Make It a Routine
When you are not doing your task, it piles up. Set aside 30-60 minutes each week to maintain your finances.
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