Take Control of Your Household Finances

Maintaining a regular assessment of your family finances is essential to the family\’s financial welfare. 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. 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

Allocate Book Keeping Responsibilities 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. 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 an access to a computer, organize the physical bills and statements by putting 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. To save time from entering data, get soft copies of bills and statements, if possible.

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.

Plan Your Finances

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

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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