How do family finances affect family relationships?
Many families do not pay enough attention to the issue of family finances. Often it comes down to calculating the family’s income, which mostly consists of wages, and purely chaotic expenses. Such an attitude to family finances, especially if incomes are relatively small, leads to the fact that expenses sooner or later begin to exceed family income. As a result, household finances collapse, which in turn leads to family quarrels, misunderstandings, and often divorces. In order not to become a hostage to the constant showdown with your second half due to lack of funds, it is very important to properly organize the management of your family finances, determine a clear line and, if possible, adhere to it. This is a family issue, so it must be agreed between the two spouses and built on honesty and trust.
How to organize the proper management of household finances?
Important in the construction of the most correct organization of family finances is the definition of the family budget, that is, the family’s need for money for its normal existence. Based on this need, you need to decide how, from what sources your budget will be filled. If you see that your income is not able to cover expenses, then you need to revise the family budget, analyze expenses and cut those that you can do without at this stage. Of course, sometimes it is difficult to give up some entertainment or new clothes, but you need to remember that excessive spending can lead to the collapse of family finances. So what is better to do to achieve the stability of family finances: live on existing incomes or earn in accordance with requests? It would be most optimal to combine these two options, since each of them has its pros and cons. As you know, the higher the income, the greater the need.
Cash savings – are you needed or not?
Cash savings will become a reliable platform for your family finances. Even with small incomes, it will not be difficult to set aside a small amount in the form of savings. Each family has its own specific needs and opportunities, but when analyzing all cost items, you can always find a lot of unnecessary expenses. If we talk about forced savings, it is best to save on such large items of expenditure as the purchase of products, utility bills (saving electricity, water consumption, etc.), travel. If there is a teenager in your family, then saving in relation to his purchases should be very careful and thoughtful. After all, not even every adult can resist buying this or that thing, sometimes making even purely impulsive purchases that do not fit into the family budget. And what can we say about teenagers? Sometimes for them some thing is very important, although we, adults, do not understand its value. A smartphone with Internet access, a tablet, sports equipment and fashionable clothes – for them now these are practically essentials. Of course, not every family can include such expenses in their budget. Maybe this should not always be done. You just need to reasonably and calmly explain to the child the possibility of buying a particular thing.
Findings
Such savings can help you set aside a certain percentage of income every month, which will not significantly affect the well-being of your family. Cash savings will help you in case of unforeseen circumstances, and if you direct them to investments, then over time you will accumulate your family financial capital, which will be able to provide money to your family after some time.
Tagged with: Personal Finance
