Photo : Jagaharta
How to Manage Family Finances Well and Orderly
There are several ways you can ensure that your family's finances are maintained and that you don't go over budget, here are some of them.
1. Create a maximum limit for each expense
Every household has different expenses. Usually, these expenses are determined by the needs of each family member, the desires of family members, the family's plans and dreams, and the family's lifestyle. However, what needs to be paid attention to is that monthly household expenses should not exceed monthly income. Make a budget specifically while keeping financial income in mind.
2. Take detailed notes
In just one day, you will definitely carry out various financial transactions, whether it's shopping at a minimarket or topping up electricity tokens. In daily transactions, the nominal amount of money spent is usually not too large. This small amount of money is often forgotten and not recorded. In fact, whatever the nominal value, expenses are still expenses.
For this reason, try to keep detailed financial records for each expense. It would be even better if you save proof of transactions to make recording easier. Apart from helping you track your expenses, this method is also effective for estimating the amount of your future household expenses.
3. Create a separate account for savings and operations
This method of managing household finances must be implemented. Never touch the money saved in a savings account and allocate some funds for your family's operational account. Separating savings and expenses will help you be more disciplined in saving money.
4. Set aside emergency funds
Saving is necessary for long-term interests. Usually used to realize plans for the future or for other needs that cannot be predicted when they will come. Apart from that, saving is also needed in order to prepare an emergency fund. This emergency fund is really needed when you face an emergency situation, for example when your child suddenly falls ill or when a natural disaster occurs.
5. Prepare funds for protection
Apart from recording finances, managing household expenses, and preparing emergency funds, you also need to prepare funds for protection. This protection fund can protect you and your family when you are sick or have an accident. Protection funds that you can use include health insurance and life insurance.
You can indeed use savings or deposits to protect your family from various risks that arise in the future. However, this will make it more difficult for you to save and make your dreams come true.