Take Charge of Your Family Finances

By Adrian Philips

Regular assessment of your household finances is important to the family's financial well-being. Here are some guidelines to control your household finances.

Use of Credit Cards

Use your credit if you have one. However, remember to pay your outstanding balance, not the minimum amount, before its due. Utilisation of credit card should be done 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. Always clean your air-conditioners.

2. Wash your laundry on full load.

3. Place thimbles on your taps

Allocate Book Keeping Reponsibilities to Your Kids

Do you have children? Think of assigning simple tasks such as data-entry to them. This will make them understand basic financial principles. Moreover, it will also give them a sense of responsibility and promotes good financial practice.

Organize 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. 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.

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.

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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