The Key to Successfully Managing Family Finances
The definition of success in managing family finances can vary for each family. It depends on each family's goals. Some people consider that if their salary is enough for daily needs and they set aside a little for savings, they can be said to be successful in managing family finances.
But on the other hand, there are also those who think that this cannot be considered successful because they have not been able to invest according to their desires and many wishes have not been fulfilled.
Whatever the definition of success in managing family finances, there are several keys to success and ways to manage family finances that you can apply.
Discipline in Recording Expenses and Income
Monitoring income and expenses every day will make it easier for you to know whether cash flow is running well. You can accurately detect expenses that can really be cut to increase savings. Or find out which expenses have been the most wasteful.
By recording these expenses and income, you will no longer be confused about where the salary you have received has been spent.
Don't Buy Things for Prestige
The recent buzz on social media has had many impacts on various aspects. Many people compete to look cool and wealthy. This also affects family finances. As a result, people try to buy unnecessary items, forcing their financial situation. Just to prioritize prestige and be praised by others.
Of course, this will destroy family finances. Cash flow will be disrupted and basic needs will not be met.
Before you regret it, instill in your mind that a healthy cash flow and meeting basic needs is more important than receiving praise from others.
Borrowing Only When Necessary
In this digital era, borrowing money online has become easy. Just with an ID card or other identification without collateral, someone can get a loan. However, this loan has a very high daily interest. Many people do not consider the high interest and end up trapped in online loan debts of tens of millions, even though they initially borrowed a low amount.
Therefore, do not be tempted by the ease of any loan. Especially if you do not have an urgent need. If you must borrow, then borrow from close relatives. Because you do not have to think about interest every month. Don't forget to truly intend to pay off the debt, even to your own relatives. Because many people, when borrowing, end up being hostile to the person who lent them money.
Openness Between Husband and Wife
The key to successfully managing family finances starts with being open with each other about finances. For some couples, financial issues may be a taboo subject. But if there is no openness between each other, managing family finances will become difficult.
Especially regarding debts or receivables, partners have the right to know whether you have debts and how much the debts are.
Determine your family's financial success goals. And discuss them with your partner. Remind each other to achieve those goals together.
Managing finances does not always go as desired. Especially if suddenly you have to spend money for needs outside of the plan, such as a relative passing away or having to attend a wedding of a relative who lives far away. Even if it doesn't go as smoothly as desired, remain grateful for whatever income you have. Manage finances as best as you can, restrain yourself from buying unnecessary things. Don't forget to give charity, even if it's just one percent of your total income.
Those are some keys to successfully managing family finances that you can implement in your daily life. I hope you succeed.
Author: Iskael
