Take Control of Your Household Finances

Regular assessment of your household finances is important to the family’s financial well-being. 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 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. Put 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. It will also teach them to become responsible & promote good financial practice.

Keep a File of Your Financial Statements

List down your finances. Have a notebook or a ledger. If you have an access to a computer organize the physical bills & statements by putting 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 & statements if available. This will save time from entering data.

2. Save your files & 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 & 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

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

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