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.
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. Use your credit card 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. Cleaning of air-conditioners should be done regularly.
2. When you do the laundry, do it full load.
3. Put thimbles on your taps
Allocate Book Keeping Responsibilities to Your Children
If you have kids, share them a simple task in book keeping, like data-entry. 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
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. 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 safe place.
Financial Planning
If you have a little 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.
Do It Regularly
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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