Maintaining a regular assessment of your family finances is essential to the family’s financial welfare. The following tips will help you take charge of your household finances.
Use of Credit Cards
If you have a credit card, use it, but don’t forget to pay the entire sum, not the minimum amount, at the end of the month. Use your credit card 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. Below are useful tips to cut down your household 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
If you have kids, share them a simple task in book keeping, like data-entry. Thorugh this, they will learn the basic financial rules. Moreover, it will also give them a sense of responsibility and promotes good financial practice.
Organize Your Financial Statements
Take note of your finances. Compile them in a notebook or 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 cash for a spreadsheet.
Here are some tips in organizing your financial statements.
1. Keep soft copies of bills and statements, if available. This will save time from entering data.
2. Back-up all your files, save them into CD-R or thumb drive. Then keep them in a safe place.
Financial Planning
If there is only one in the household is working, and there is not much sources of income, consider an insurance plan for the breadwinner. This will help you from financial problems when the breadwinner become disabled
Make It a Routine
The more you postpone, the more it piles up. Set aside 30-60 minutes each week to maintain your finances.
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