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
Use your credit if you have one. But, 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, reckon 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. Place thimbles on your taps
Assign Book Keeping Duties to Your Kids
If you have kids, share them a simple task in book keeping, like data-entry. This will make them know basic financial principles. It will also teach them to become responsible and promote excellent financial practice.
Organize Your Financial Statements
List down your finances. Have a notebook or a 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.
The following tips will help you organize 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 secure place.
Financial Plotting
If you have a littlle source of income, and there is only one person working in your family, reckon of getting an insurance plot for the breadwinner. This will help you from financial problems when the breadwinner become disabled
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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