Take Charge of Your Family Finances

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.

Use of Credit Cards

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

If the total household expenses is higher than 33% of your household income, it’s time to cut down on expenses. Here are some tips to lower your 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 Children

Do you have children? Think of assigning simple tasks such as data-entry to them. This will make them understand basic financial principles. It will also teach them to become responsible and promote good financial practice.

Keep a File of Your Financial Statements

List down 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 up 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. Save your files and have back-up of them. You can use CD-R or thumb drive. Then keep them in a safe place.

Financial Planning

If you have a littlle 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

When you are not doing your task, it piles up. Set aside 30-60 minutes each week to maintain your finances.

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