It’s not easy managing a household. Keeping the house clean, taking care of the kids, making sure you’ve paid all your bills, doing errands and chores on top of having your day job. What’s even more difficult is the fact that despite everything you do, sometimes you still come up short in paying bills and necessities. You might even have financial troubles here and there.
But don’t worry, everyone goes through that at some point in their life. While there’s a popular saying that claims “money can’t buy happiness”, we all know it can make life a lot easier. Money can indeed not buy happiness, but it can purchase the things you need in your life. It can take away a lot of anxieties and worries.
Unfortunately, there isn’t any genie in a bottle with three wishes for us. We have to make do on our own. And that’s what this is article is for. Below are ways you can manage your family’s finances better, and ultimately be in a better financial position sooner rather than later.
Be on Top of Your Finances and Expenses
The first step to managing your finances is actually knowing what you’re spending your money on. You might have a rough idea of how much funds you’re bringing home and how much goes to paying for electricity,mortgage loans, or other expenses and utilities but a rough idea isn’t enough. It’s best to have an exact number of how much you’re letting go monthly. This is all for understanding how your money moves, and even making predictions whether you’ll be running short or not.
The good thing is technology makes tracking your finances easier, as there are multiple expense tracker apps that you can use. Utilizing these software tools can help you have a visual aid, allowing you to see whether you’re spending too much for something or whether you can save money here or there. Make sure you’re on top of your finances and expenses, and you’ll be aware of how to manage your money.
Set Goals and Targets for Your Savings
Saving money is already a given, after all, it’s the only definite way of making sure you’ll have enough for the future. But simply saving money without a target isn’t exactly the best technique. It’s easy to assume that saving money is enough, but not having a goal can lead you to simply spending it all in one go, or chipping it away until there’s none left.
One good and easy target for your savings is an emergency fund. Think of how much you need to survive at three months (at minimum) without work. This includes everything, from all the utilities and daily living expenses to whatever payments you still need to pay. This is your basic emergency fund and is a good goalpost to target as it will help you prepare for the future.
Teach Yourself (and Your Family) Personal Finance
If you go to a bookstore, there’s a big chance you might see a section called ‘personal finance’,but what is it really? In simple terms, it’s anything covering topics such as saving money, investing, insurance, tax, and other financially related topics. And a large part of what you’re doing by managing your family’s finances already falls under personal finance- so why not commit to it and study?
Your financial situation won’t be the same as the next family, and there are many factors affecting that. From salary to living expenses, the multiple factors dictating how your money moves should be something you study thoroughly. There are many resources in personal finance, from physical media like books and magazines to digital formats like videos and online articles. Familiarizing yourself with the multiple facets of personal finance will not only help you better manage your money but also prevent you from making bad financial decisions.
However, what’s equally important is you share this all with your family. After all, you might be the one managing the finances, but it’s still ultimately your family’s concern. Having them learn with you will grant them a better understanding of how finances work, and hopefully encourage them to make better financial decisions too.
It’s Difficult but Not Impossible
Managing the family’s finance is something that every household needs to do. Some have it lucky by having a high salary, some struggle to make ends meet. What’s important is we make the most of what we get and make the right decisions. And making the conscious effort to manage your family’s finances better is a step in the right direction.