No matter how much income you earn, it is important to know how to manage your household finances properly
When single, you may only care about managing your personal finances. Unlike when you are married, you need to know how to manage household finances.
Because household expenses are certainly increasingly diverse, ranging from children’s education funds, family emergency funds, family vacation funds, and so on.
Especially if you intend to buy a car, house, or other assets.
Come on, find out how to manage household finances so that they are not wasteful and stable!
How to Manage Household Finances
When you can spend your money wisely, you don’t have to worry about managing it.
The trick, Moms can start talking with Dads regarding personal needs, household needs and future planning.
Therefore, Moms must find out how to manage household finances that can be adapted to family conditions.
A study in the Journal of Marriage and Family analyzed that when comparing women’s and men’s money management, the results suggest that women may be better at managing money than men.
Even so, this can still be discussed with a partner.
For newlyweds, there are several ways to manage household finances that can be imitated.
1. Financial Planner Eko Endarto
It seems, it’s no stranger to us hearing the name Eko Endarto as a financial advisor who is quite popular today.
As for what can be followed to manage household finances so that they are not wasteful according to experts.
Here are some ways that can be done with minimal income, Moms:
– Set aside 50% of net income for consumption.
– Set up 10% for investment and savings.
– Save 10% on life and health insurance.
– Prepare 30% to pay debts.
If the wife also works, make a mutual agreement, yes. For example, daily expenses use the wife’s money, while for investment and paying the house installments using the husband’s salary, or vice versa.
Before starting to invest, the family should have a reserve of money worth 3-6 times of monthly expenses so that household life is guaranteed.
2. Version of American Financial Advisor Mark La Spisa
There are also tips for managing household finances according to an expert from abroad, namely Mark La Spisa.
For those who have minimal income, try to follow a number of ways below to keep your finances stable.
Here’s how to manage household finances according to Mark La Spisa:
– Set aside 80% of net income for daily expenses.
– Save 20% for savings, consisting of 10% for reserve funds and 10% for old age.
If expenses are more than 80%, you can follow the steps below:
– Save 3% of income.
– Reduce unnecessary expenses (eg the gym, pay TV subscriptions, eating out, and so on). This method can make the percentage for savings can increase to 7% a month.
– Slowly, increase the savings portion again to 10%.
It’s different if you or your partner have debt, here’s how to manage it:
– Try to spend only 70% of income.
– Use 30% of it for savings and debt.
– Make sure you don’t add any more debt.
If a relative or friend needs money, consider the following:
– Whether you need to help them depends on whether you have excess material to give or lend, the severity of the problem, and its frequency. For example, the relative or friend often has financial problems or suddenly becomes seriously ill?
– Always discuss this with your partner.
3. Enter the Bonus into the Savings
There is no better feeling than getting a bonus other than a monthly salary.
The first thing that comes to mind may be the desire to repair the car or add to the skincare line. But believe me, it’s not the best option.
Instead of spending immediately and potentially losing it a second time, immediately deposit the bonus into a savings account.
The same goes for getting a tax return, year-end bonus or for an annual raise.
4. Making Food at Home
It can be difficult to add energy to make food after a long day at work.
However, this is another trick to not overspend and start saving to increase the nominal savings.
Start with the habit of cooking lunch at least 2 times a week. If you eat out a lot, slowly increase it to 3 or 4 times a week.
If that’s unrealistic, take time on Sunday to prepare a light dinner for the week.
With this way of managing household finances, Moms or Dads will have food ready to eat with a little processing when you get home from work.
The same goes for drinking coffee, you know. Buying coffee every day can seem like a small expense, but it can really drain your wallet in the long run.
5. Make a Shopping List Before Going to the Store
If you have ever gone to the supermarket or market without a grocery list or when you were hungry, you may be tempted to buy more food than usual.
This is why it is important to always make a shopping list before shopping as a way to manage household finances so that they are not wasteful.
Plan what you need for a week or even a month before going to the store.
This will not only ensure you don’t forget anything, but also to avoid picking up unnecessary extra items.
6. Set Shopping Limit
Get in the habit of avoiding buying things on impulse.
Arm yourself with a grocery list as a reference for shopping when going to the supermarket the following week or month.
After selecting the specified items, Moms can set how much shopping limit is needed each month.
Although there will be changes at every shopping time, usually the changes are not too significant because they already have a limit for each item of need.
7. Wardrobe Declutter
Come on, manage household finances with minimal income starting from easy things!
The real thing to do when shopping is to remove items that are no longer used.
Known as decluttering, this is being done recently, you know.
For example, when shopping for clothes, you have to spend clothes equal to the number of clothes that have been purchased.
Moms can also sell them if the condition of the clothes or shoes is still suitable for use.
In addition to reducing the contents of the closet, it will also provide other benefits when the clothes are sold.
Not only for clothes, this also applies to other items such as shoes, books, to kitchen utensils.
8. Cancel Bill for Entertainment
It’s easy to forget about recurring monthly bills.
Even though it is considered cheap, if you add it up per year, it is an extraordinary number. For example, when you decide to no longer subscribe to cable TV.
Imagine, these expenses will be additional savings in a year.
Moms and Dads can also look for other entertainment, such as visiting the library in their spare time.
Eliminating extra expenses that are rarely used can make a significant difference in finances.
9. Do a DIY Project
How to manage household finances so that they are not wasteful by utilizing existing items.
Instead of going out to buy a new mask, find items at home and make a DIY mask yourself.
Many DIY projects can take advantage of things you already have at home. This can also be done as a way to save money.
Moms can easily find food recipes to make lunches for the office or other ways to make the most of the things you already have around the house.