Dear AMAAN’s best friend and Mrs. IdAMAAN, have you ever experienced a depleted wallet at the end of the month? Well, this doesn’t have to happen, especially if you follow these tips for managing your family’s finances well. Not only are these tips easy to follow, but they can also help you build a saving habit for a more organized financial future!
Tips for Managing Family Finances
Create a Financial Plan
First and foremost, it’s crucial to create a financial plan. Ideally, this should be done before the end of the month, before payday, so that when the monthly income arrives, you can immediately record the expenses. To create a plan, you can list down all the expenses that need to be prepared each month. For example, children’s school fees, household electricity and water bills, expenses for mobile credit and internet, and so on. Gather the expenses that will be incurred each month, then determine the percentage to be set aside for savings or donations.
Use Income According to Needs
After creating a financial plan, the somewhat challenging part is to discipline yourself to follow what has been planned. In order to avoid a thin wallet at the end of the month, you must remember to use the available money according to your needs. If you want to buy something that is tertiary or not highly necessary, you can plan ahead, for example, to purchase it in the following month, so as not to disrupt the flow of your family’s monthly income and expenses.
Set Financial Goals
Dear best friend, do you already know how important it is to have goals? Well, just like other goals, it is very important to have financial goals! For example, wanting to provide education for your children up to university level or going on a vacation abroad with your family. Having goals will serve as a “brake” when you feel like making impulsive purchases or buying something that is just a momentary desire. If you think about long-term goals, you may be more focused on saving money in order to achieve those goals!
Well, those are some tips for managing your finances that you can follow, my best friend! Which ones will you implement? You don’t have to do everything at once; you can try them out gradually, one by one, so that all these tips can be effective in the long run. Good luck!