Managing household finances is indeed important to determine expenses and how much to prepare for future needs. Funds obtained from income should be allocated wisely to meet needs, emergency funds, and investments.
Another need to consider is funds for planning a vacation with the family. Family holidays are as important as anything else to create good memories to remember together. Here's how to managing household finances that you need to know.
The first step you need to do is calculate your income and expenses. If your partner also works, calculate the joint income plus other funds such as overtime incentives or the results of a side business. After that, make a list of household expenses, such as clothing and food.
This is important so that you and your partner can allocate incoming funds for primary needs that must be met. By calculating the financial details, you get an idea of how much money you need and what needs must be met.
Distinguish between needs and wants
The second thing you can do with your partner is to distinguish between needs and wants. Often we are blinded by mere lust, such as a collection of items that have just come out to spending on non-urgent items.
Manage your household finances well by starting to buy goods according to your needs. Buying unnecessary things can be considered a waste and can harm you in the future.
Household needs that must be met include household utility bills, children's education, the need for food, transportation and installments. Don't forget to make a shopping list when shopping for basic family needs.
Planning a grocery list here is considered very efficient because by shopping in wholesale quantities, the price will be much cheaper, so you and your partner can save more on buying food and have more savings.
Use a credit card wisely
The use of credit cards that make it easier for consumers can indeed make the wearer lose self-control in using it. Be wise in using your credit card because credit cards can trap you into a deep debt hole if not carefully considered.
Wise use of credit cards is also a good way of managing finances. The best advice is if you can't use it wisely, it's better to avoid using a credit card.
In addition to taking into account financial details, set aside your funds for an emergency fund. An emergency fund is one of the most important concepts that should be discussed in the discussion of household finances. Emergency funds are usually funds used for the future and health.
If you set aside 5-10% of your income for an emergency fund every month, one day you won't have to go into debt or be confused if an emergency strikes. Keep in mind, buying unlimited goods is not an emergency, but only a momentary desire.
Investments that have become a trend lately do have many long-term benefits. Many people start to allocate their secondary needs to invest. Make sure you are equipped with sufficient knowledge before starting to invest.
Sign up for insurance
Having health insurance, is very important to provide financial protection if something happens. The reason is, the cost of treatment is not cheap, for one doctor's consultation visit alone can spend at least 100 thousand rupiah. Therefore, buy health insurance products.
Life insurance can be used to replace income streams for the surviving spouse. In addition, providing guarantees for heirs, replacing asset values, maximizing pensions, tuition funds for children and grandchildren, and other benefits.
Basically, it is undeniable that the financial cycle will be increasingly difficult to control when married. Increased household needs will go in line with spending. Therefore you should try to limit spending, save, plan for shopping needs, and be wise in allocating funds.
In addition to getting used to it, you also have to get used to washing your hands correctly properly according to the financial budget that has been made with your partner. Those are some steps you can take in managing household finances.