Tuesday, October 20, 2009

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.

Credit Card Use

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

2. Wash your laundry on full load.

3. Place thimbles on your taps

Assign Book Keeping Duties to Your Children

If you have kids, share them a simple task in book keeping, like data-entry. 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 up cash for a spreadsheet.

Here are some tips in organizing 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 secure place.

Plan Your Finances

If there is only one in the household is working, and there is not much sources of income, consider an insurance plan for the breadwinner. This will help you from financial problems when the breadwinner become disabled

Do It Regularly

The more you postpone, the more it piles up. Give at least half an hour each week to analyze your finances. - 29904

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