8 EASY WASY TO MANAGE THE HOUSEHOLD FINANCE IN 2023

Managing the family finances successfully is not something easy, but it is not as complicated as
it seems. When a family sits together to discuss their financial position, how to improve it and
how to manage it, it is always great. Families who meet up regularly to discuss their finances will
likely be do well financially.
Managing the family finances will be a lot easier if every member of the family participates,
although it should be managed by one person most, especially the mother. When everyone in
the family is aware of the family financial state, they can always find a solution to any financial
crisis and it is a lot easier when they all cooperate. In achieving financial freedom in the family,
cooperation is the number one key. When families work together as a team it becomes easier
for them to achieve their financial goal.
Let’s quickly get to the tips that will help us manage the family finances.

1. Set financial goals for the family and how to achieve the
goals:

Once the whole family knows about the financial state of the family, it will be easy for
them to set goals— it might be to save a certain amount of money for months or even a year. It
might be planning for the family vacation—the family can save towards it too, it might be saving
some cash every or even month.
They can also plan to establish a family business that will bring income for the family. It could
be a family restaurant, a grocery store, a cloth store etc. Once the business starts making profit
it will be easy to take care of the family’s essential needs and also help the family to achieve
their financial freedom. But the business needs to be well managed as well, it is not a bad idea
to employ an accountant that will help in keeping track of the expenses.

2. Create a budget with the monthly income of the family and
plan how to share the income to pay off expenses:

Here, try as much as possible to create a budget that is not above the family’s income . Cut off the
unnecessary expenses so as to save something every month.
The family needs to stick to their budget to avoid living beyond their means and also to prevent
them from taking loans. Creating a family budget helps the family to spend money only on
essential needs and enables them to save the extra cash of wants for unforeseen expenses. It
also stops the family from overspending, the key to budgeting is more like spending less than
you earn. All you need to do is to know the total income of the family per month, list out the
needs of the family—things they cannot live without. Make sure you buy these things in bulk, as
it is cheaper that way. Budgeting will also save you the stress of thinking where the money went
to as it shows you where every penny goes.

3. Planning on what and how to save:

this is another way of managing the family’s finances: Here, the family budget tells you whether you are spending more than the
family income or less, if it is more you will need to cut down some expenses so as to have what
to save at the end of every month.
To make saving money easy, it is important to keep extra cash or emergency—emergency fund.
It is also necessary to decide on what you are saving for—may a bigger apartment, a new car,
family vacation etc. It is good to set a deadline too, but make it realistic and give yourself
enough time to avoid being pressured. You can even open a separate bank account for savings
to avoid spending the money. Saving will really help the family’s financial growth.

4. Establish a bill paying system:

to make it easy you can open separate accounts for different expenses. When you have a good bill paying system it makes paying bills
easy for the family. It also prevents the family from getting into too many loans.
You can have an account for vacation funds, Christmas funds, mortgage funds etc. This will help
the family to know how much money is spent on different expenses. This way accounting is
easier to do.

5. Set family financial goals:

setting fanatical goals in the family is very
important. The goal can be — saving for retirement, saving for the kids’ college, planning on
clearing debts at a certain age, planning on opening a family business etc.
Well, those are long term goals, you can also have short term goals— like saving for a family
vacation, Saving emergencies too etc. When setting these goals, try to be realistic and flexible
with your plans. You can as well write these goals down, set a deadline— give yourself enough
time though to avoid being pressured. Writing down steps that will help achieve these goals is
not a bad idea. Review the progress of the goals every month.

6. Retirement planning:

even though you are a young couple, it is never too early
to start planning for retirement. The earlier you start the better, especially when you don’t want
to be a financial burden to your children in the future.
You and your spouse should save a certain amount of money every month making sure they set
a target too. Apart from saving they can also choose to invest in something too.

7. College planning:

raising kids is no joke, kids are so expensive to take care of.
Planning about their college when they’re still very young is the best.
You can also open an account for this too. As they get close to the age of college, discuss their
choice of College with them and also what the family can afford.
Planning about their college when they are very young will help them reduce the amount of
student loans they collect.

8. Insurance planning:

this is also one important aspect and it should not be
overlooked. Insure your home, vehicles and insure your health as well.
Having insurance is bliss and it is not hard after all. Having life insurance provides reassurance
and financial safety if the worst happens.