Home Money Management

madathil mhanian By madathil mhanian, 25th Sep 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/14ndi17a/
Posted in Wikinut>Money>Money Saving Tips

an article about how effectively home money management works for a working couple with some simple tips and planning.

Home Money Management

In these modern times shouldering the responsibility of running a family is a collective effort of husband and wife. All the more so, when the wife is also a career woman. When both of the members earn, while it is easy on meeting the monthly budgets or an unexpected expenditure from time to time there bound to be some ego clash between them. If that can be taken care then the home money management is an easy, collective task for them.

Having said that, let us see the basics that help a family to have a healthy home money management. If it is just meeting the expenses that arise from day to day, then the word ‘management’ loses its meaning itself. For that you need only basic knowledge of arithmetic. Let us add some fine points for a healthy home money management.

Taking stock of the Resources: this is the basic task by which one calculates the total available resources; in this case, money. It is a nice idea to calculate the total money available for the family by adding up the net take home salary rather than the total salary. You will be surprised by the difference between these two if you pay attention to the cuts that are made from the salary.

Critical Look: When you pay some close attention or some rethinking, you will find that some expenses that can be curbed with some very useful steps. For example, if the husband and wife are working in the same city, rather than worried about the status symbol of driving to work in two cars, they can curb on the fuel expense by travelling in one car. For some unavoidable circumstances, like an out of town meeting or a field work you can make some exception.

Planning: The integral part in home money management, especially if you have to make some reserve for future use that helps you when you have some unusual expenses, is planning. You have to earmark the expenses and find ways to curb some through some changes. If the husband and wife are working in different part of the city, a home at a locality that is equidistant for both work places will be a good idea saving time on travel and fuel bills. How about dinner in a budget hotel two times out of the four in a month to save on your expenses? Little things like this will help in home money management.

Savings: it is a nice idea to put half of your savings in the bank in term deposits rather than in a savings account. A Term deposit earns more interest than a savings account or popularly known as a checking account. In these times of healthy competition among banks to woo customers with more facilities and interests opt for the one that offer a better interest for your money.

Curb the impulse buys: If the Smith’s or the Thompson’s upgraded their television to a LCD or when there is a sale of the new model of refrigerators in the town, what you have to do is NOT make a beeline to the nearest showroom to get one for you as well. If you are watching the television very little during weekdays, what is the use in investing a huge amount in getting a new one for you, that too when the one you have at present is working in perfect condition.
Thinking twice before making a decision on an expenditure is the real key for healthy home money management.

Tags

Impulse Spending, Money Management, Planning, Planning In Advance, Saving Tips, Working Couples

Meet the author

author avatar madathil mhanian
from Coimbatore, worked as a Zonal Sales Manager for a Pharma company. At present earns as a Freelance Trainer for Pharma companies.

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