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You need to know how to manage your family’s finances through sensible spending. That way, financial worries will not put pressure on your life.
What is household spending?
Household expenses are all expenditures intended to serve the material and spiritual needs of family members from their sources of income.
Expenses for material needs such as the cost of buying personal items, meals, electricity, water, travel expenses,… Expenses for spiritual needs such as entertainment costs entertainment (Netflix, Spotify, cable TV,…), travel,…
The secret to effective family spending
Make a spending budget
The spending budget table is a method of recording expenses, helping you to spend more rationally. The budget table will help you plan spending based on specific numbers in spending limit items such as savings items, spending items that you have set out earlier.
Through this spending budget table, you can also control your shopping, not spending too much money on unnecessary things.
Making a spending budget will help you use money more scientifically, ensuring financial stability for your family.
Set a savings goal
Setting a savings goal with specific numbers will help you be more motivated in saving. At the same time, setting a savings goal also makes you think carefully before you want to buy an unnecessary item.
From there, you can save some money to invest, travel or do the things you’ve always dreamed of.
Make a list before you shop
When we go shopping, we often buy a lot of unnecessary things. The reason is that the layout of products in supermarkets and shops is often very eye-catching. In addition, supermarkets and stores often have promotions. Therefore, you often buy unnecessary things for yourself.
Making a list before you shop will help you list specific items to buy. Besides, you will not have to buy excess unnecessary items, helping you save 1 of your spending.
The 50/30/20 . Rule
The rule of personal financial management was introduced by businessman Amelia Warren Tyagi in “All Your Worth: The Ultimate Lifetime Money Plan”. With this rule, you will divide your monthly earnings into 3 main groups, including: Essentials, personal expenses, and savings (or debt repayments).
In which, essential needs such as food, electricity, water, … will account for 50% of the total amount. Personal expenses such as shopping, personal belongings, etc. will account for 30% of the total amount. The remaining 20% will be money you save or pay off debt.
In this way of financial management, you won’t overspend because you will have to divide them into separate money groups at the beginning of each month.
Save electricity and water
Saving electricity and water is also a way to save money. You will turn off unused electrical appliances, use clean water more scientifically. Within 1 month, you will see a marked change in electricity and water bills.
In addition, you can invest in your home an energy collector and produce electricity from solar energy. It will help you a lot in saving electricity.
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Looking for more sources of income
In addition to ways to save, you can also increase your income by doing other jobs besides your main job. However, do not let this side job affect your main source of income.
You can also liquidate items that are still used but you no longer feel suitable for you such as clothes, jewelry, accessories, …
Through the above tips, Cfis.edu.vn hopes you will find a reasonable spending method for your family. From there, you will enjoy life more, no longer worrying about financial problems.
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