Managing household finances is indeed difficult. There are just needs that make you have to spend money in excess of the budget. There are always mistakes that make you and your family become unable to save. One problem might be that your management is not right. There are various expenditure items that have not been recorded, or the allocation of funds is too minimal in certain posts and too excessive in other posts. To find out how to manage household finances so that they are not wasteful and what is the key to success in managing family finances, see the following points:
The Benefits of Knowing How to Manage Household Finances
By starting to know and apply how to manage household finances so that they are not wasteful can help you to have a healthier financial flow. Of course, by having regular family finances you can further minimize uncontrolled expenses, especially expenditures that are impulsive because of debt, for example with a credit card. So, by managing regularly you can minimize the possibility of getting caught in debt.
In addition, you also can control so that there is no unexpected financial that comes out, which will usually make you more wasteful. Usually by managing like this you can know exactly how much you can spend and how much your spending limit is to avoid overdoing it.
Of course, this way you can also save more. You can also know where spending is less necessary and can be allocated for savings. Later, these savings can be allocated to other things such as paying off debts (if any), or used to finance emergency funds someday.
The Key to Success in Managing Family Finance
Close up of the image of a business person holding a shining key.jpeg When you start managing money, of course you have to start with the key to successfully managing family finances. This key lies in the involvement of all family members. Allow each member, even the child to take part. Explain to the child that the family’s financial condition must be tightened so that the financial flow becomes healthier (if you are trapped in debt, try to communicate with a language that is easier for children to accept).
Take the time to do a family meeting, and determine how much is enough for each expenditure. Agree together with each family member, and notify that this budget will not go according to plan without the involvement of all family members.
Ways to Manage Household Finances so as not to be wasteful
1. Create a list of expenditure posts
Start by dividing the various types of expenditure items that you and your family will spend. Some posts that are usually quite important are:
- Home needs: electricity and water bills, annual PBB, emergency funds to repair damaged parts of the house
- Household needs: consumption,
- Savings and emergency funds
- Transportation: fuel costs or public transportation costs
Entertainment (if possible)
- Check again whether there are other expenditure items that are usually required to pay regularly, one of the most important is paying debt installments such as credit cards or KTA, and other debts such as mortgages, KKB. Of course this needs to be budgeted specifically if you still have debts going on.
After knowing the expenditure post, try to start allocating funds for each existing post. You can use a free application or use a spreadsheet table in Excel. This will help you to calculate each type of expenditure, and see whether or not you need to allocate that kind of money.
2. Create a Billing Calendar
Workplace with a tablet PC shows a close-up of a cup of coffee. To make household finances more organized, it’s a good idea to make a calendar of bills every month. Mark any date you have to pay for water or electricity bills (as well as a schedule to purchase PLN pre-paid token pulses), pay children’s school fees, date credit card bills (if any), or other bills. Get used to regularly do it at the beginning of the month, at least on the 10th of every month. This will help you become more organized and avoid the cost of fines.
3. Pay Debt Every Month
If you do have a post to repay debt installments every month like the post above, of course this must be prioritized. Make sure to pay debts regularly every month so that you are not in arrears and have an impact on the bad iDebt (debtor information) of your OJK.
You can outsmart this section by participating in the debt management program of the company that provides the program. Usually by registering in a debt management program you can get a relief program in paying off credit card debt and KTA, so this can also help you in reducing the budget every month. How to manage household finances so as not to waste this one feels quite effective, especially for those of you who do have difficulties in paying debts every month.
4. Making Goals in Saving
The key to success in managing the family also lies in the ability to save. The main recipe you have to do is to set aside, not leave money every month. Many manage it inappropriately because the rest of the money at the end of the month has already run out and can no longer save. Even if only every month you and your family regularly set aside at least 10-30% of monthly income into a savings account, this can have a big impact on you. The results of savings can certainly be allocated to things such as buying assets with a bigger down payment (DP) so that the installments are lighter, for vacation, or for other expenses that are needed.
5. Set aside money for an emergency fund
Oh yes, it’s also important to save for emergency funds. An emergency fund is a fund prepared to be used in an emergency, such as if you fall ill or may be fired from work. Why should emergency funds and savings be separated? Of course, just in case you replace your main income in a state of urgency. The function of an emergency fund will be felt when your main source of income is completely lost, so it really shouldn’t be used at all and must be allocated in a special savings account.
Emergency funds that need to be prepared are usually based on your monthly salary. You can prepare emergency funds as much as 3, 6, or 12 times the amount of your monthly salary. Usually for those who are still single, enough 3 times the amount of salary. For those who are already married, it’s good to prepare a minimum of 6 or 12 times the amount of your salary.
6. Expenditure Monitor
After knowing what expenditure items are and what nominal is allocated for each post, this is the time to implement and evaluate. Try to keep monitoring expenses for a month, whether the allocation you make to your family’s finances is enough or still lacking. Look again at which posts need more nominal, and in which posts should be reduced or even eliminated.
7. Change the habit to always use cash or debit cards
Avoid using credit cards in daily payments. Credit cards are good for getting promos, so you can pay cheaper. However, if you use a credit card continuously, there will usually be a tendency to use it uncontrollably. Of course this can have a negative impact if it occurs unknowingly, the bills that come in the next month can swell suddenly.
Therefore, change the habit of always using cash for everyday transactions. Make sure the debit card or electronic money that you use is already limited in nominal value for daily use, so it is indeed a different card from a special savings account card.
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