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
Use your credit if you have one. However, remember to pay your outstanding balance, not the minimum amount, before its due. 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
Allocate Book Keeping Reponsibilities to Your Kids
If you have kids, share them a simple task in book keeping, like data-entry. This will make them understand basic financial principles. Moreover, it will also give them a sense of responsibility and promotes good financial practice.
Organize Your Financial Statements
Take note of your finances. Have a notebook or a ledger. If you have a computer, put everything into a spreadsheet. You don’t even have to pay up 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. 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. 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. Set aside 30-60 minutes each week to maintain your finances.
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