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.

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. 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. Always clean your air-conditioners.

2. When you do the laundry, do it 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. Thorugh this, they will learn the 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 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. 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.

Plan Your Finances

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

The more you postpone, the more it piles up. Set aside 30-60 minutes each week to maintain your finances.

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