They say money can’t buy you happiness, but it provides you comfort in life. Worries over financial matters in the family can increase tension. Managing your personal finances can save you and your family from a lot of trouble. Here are areas you have to bear in mind and why you should manage your personal finances:
Necessities of the family. You have to save money so that you can buy groceries and other personal necessities of yours and your family, and to be able to tend to other things such as water and electricity bills, maybe school tuition of your kid, school material, furniture, maintenance, etc.
Unforeseen casualties. One should be prepared when it comes to floods, accidents, death, failing health and the like. Acquire insurance for these. There are some cases in which these casualties are self-insurable; however most require that you sign an insurance contract.
Tax. Taxes are one of the expensive expenditures that occur in the household. When your income rises, you will have a much higher tax payment. The government may give incentives, like tax deduction, that may lessen tax burden.
Retirement planning and the expenditures after retirement. With these in mind, you cannot sleep peacefully or think clearly, Here are ways on how to manage your finances:
Save: Allot a portion to your income as your savings. A large amount of savings will make you be prepared for any unforeseen events and casualties. If you can go any higher than that then it’s good. But don’t deprive yourself and your family of necessities.
Budget: Create a simple guide or a list as to what will you be spending and how much money you can afford to spend. Stick to it. Sticking to your budget will lessen your burden from other personal finances you may deal with later. When shopping or simply going to the grocery store, why not write a list or simply remind yourself that you should only max your expenses on a certain amount?
Set priorities: Carefully plan your finances. Prioritise what should be needed at first than settling on what you want. Setting priorities first can eliminate consequences that will tear your family apart. Overcome your splurging habit will also make it easier for you and your family.
Don’t “play” with your credit card: Exceeding your card limit and paying it late will cost you an enormous sum. Credit Cards have limits. Control yourself and don’t be impulsive when it comes to buying.
Make yourself aware of the present interest rates: When borrowing money from financial institutions, always pay attention to the payment terms and conditions. Pay before or within the deadline date and you will save yourself from any problems that will happen.
Deposit your money in the bank: Know your bank, whether they’re trustworthy or the bank is not that reliable. You can choose from a variety of accounts available – savings account, current account, fixed deposits, etc.