In the life of a household, finances are a major problem for both income and expenditure, wrong financial arrangements will have a negative impact on family harmony.
Although in principle, to manage finances is not much different for both individuals and corporations, in managing household finances there is a unique way and is mutually agreed upon by both the wife and husband. There are 7 ways to manage household finances that you can apply in your life if you are married.
1. Calculate all income
In managing finances, the first thing we need to calculate is the husband and wife's net income per month both from office salaries, online work, and investments. Knowing with certainty the amount of income will make it easier to prepare a budget, as well as the allocation of funds (money).
2. Separate basic needs and wants
To classify expenses, couples must classify which are basic needs and which are only wants. Basic needs are daily needs and monthly needs, such as food, drinks, children's education, electricity and water costs, while wants are temporary needs such as buying the latest model bags, vacations abroad, etc. This separation will make it easier for you to choose which needs come first.
3. List of monthly priority expenses
Prepare a list of monthly priority expenditures, which will be very helpful in managing finances effectively, so that the allocation of funds will be in accordance with priorities. which are primary needs, secondary needs and tertiary needs.
4. Prepare an emergency fund
To anticipate unwanted events in the future, we need to set aside at least 10% of income for an emergency fund.
5. Reduce Credit Card Usage
Having a CC will make it easier for someone to shop but often will be trapped in large long-term debts that we have to pay off every month. If you and your partner can't control the fun of shopping using CC, you should forget about it.
6. Maintain debt ratio
In life, both single and married, it would be nice if we could always avoid debt, because monthly bills will make us stressed and often make finances out of control. If we are forced or unable to avoid debt we must maintain a debt ratio of no greater than 30% of total income.
7. Allocate for savings, insurance and investment
After you can compile a cost budget or list of expenses, and you can allocate funds for basic needs, complementary needs and luxury needs, if there are still funds left then you can allocate funds for savings, insurance and investment.
Although in principle, to manage finances is not much different for both individuals and corporations, in managing household finances there is a unique way and is mutually agreed upon by both the wife and husband. There are 7 ways to manage household finances that you can apply in your life if you are married.
1. Calculate all income
In managing finances, the first thing we need to calculate is the husband and wife's net income per month both from office salaries, online work, and investments. Knowing with certainty the amount of income will make it easier to prepare a budget, as well as the allocation of funds (money).
2. Separate basic needs and wants
To classify expenses, couples must classify which are basic needs and which are only wants. Basic needs are daily needs and monthly needs, such as food, drinks, children's education, electricity and water costs, while wants are temporary needs such as buying the latest model bags, vacations abroad, etc. This separation will make it easier for you to choose which needs come first.
3. List of monthly priority expenses
Prepare a list of monthly priority expenditures, which will be very helpful in managing finances effectively, so that the allocation of funds will be in accordance with priorities. which are primary needs, secondary needs and tertiary needs.
4. Prepare an emergency fund
To anticipate unwanted events in the future, we need to set aside at least 10% of income for an emergency fund.
5. Reduce Credit Card Usage
Having a CC will make it easier for someone to shop but often will be trapped in large long-term debts that we have to pay off every month. If you and your partner can't control the fun of shopping using CC, you should forget about it.
6. Maintain debt ratio
In life, both single and married, it would be nice if we could always avoid debt, because monthly bills will make us stressed and often make finances out of control. If we are forced or unable to avoid debt we must maintain a debt ratio of no greater than 30% of total income.
7. Allocate for savings, insurance and investment
After you can compile a cost budget or list of expenses, and you can allocate funds for basic needs, complementary needs and luxury needs, if there are still funds left then you can allocate funds for savings, insurance and investment.
