Regular assessment of your household finances is important to the family’s financial well-being. Here are some guidelines to control 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. Cleaning of air-conditioners should be done regularly.
2. Wash your laundry on full load.
3. Put thimbles on your taps
Assign Book Keeping Duties to Your Children
If you have kids, share them a simple task in book keeping, like data-entry. Through this, they will learn the 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 a computer, put 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 secure 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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