Regular assessment of your household finances is important to the family’s financial well-being. The following tips will help you take charge of your household finances.
Credit Card Use
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. Utilisation of credit card should be done wisely.
Rule of Thumb
Household expenses should be lower than 33% of household income. If it is higher, think of cutting down your expenses. Below are useful tips to cut down your household expenses.
1. Always clean your air-conditioners.
2. Wash your laundry on full load.
3. Put thimbles on your taps
Allocate Book Keeping Reponsibilities to Your Children
Do you have children? Think of assigning simple tasks such as data-entry to them. This will make them understand basic financial principles. It will also teach them to become responsible and promote good financial practice.
Organize Your Financial Statements
List down your finances. Compile them in a notebook or ledger. If you have a computer, put everything into a spreadsheet. You don’t even have to pay cash for a spreadsheet.
The following tips will help you organize your financial statements.
1. Keep soft copies of bills and statements, if available. This will save time from entering data.
2. Save your files and have back-up of them. You can use CD-R or thumb drive. Then keep them in a secure place.
Financial Planning
If you have a littlle source of income, and there is only one person working in your family, think of getting an insurance plan 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
The more you postpone, the more it piles up. Give at least half an hour each week to analyze your finances.
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