Often we hear from some husbands when they give a reason, “I will ask my ‘finance director’. We understand that it refers to his wife.
It is the tradition in our society that a wife is the manager in the house, especially in terms of managing household finances. Financial challenges a wife. It is quite diverse, ranging from the rise and fall of family income, keeping the household budget deficits. In fact, the financial situation is less favorable. Wife is forced to go to work to meet family needs. We hope that some of the tips below will help their wives to be more intelligent and skilled in managing the household finances.
1. Building financial confidence with spouse (husband)
You plan your household finances together with a partner. You can create an honest communication and open. This will change the attitude of blaming each other (Note: This is one of the main causes of family problems). They have to tell each other what happens when excessive spending. It can also make you support each other credit for the achievement of financial goals that you have planned together. As a result, it can encourage you to be more disciplined and learn to live more frugal.
2. Shopping, debt or liabilities, and saving
What first appeared in your mind after receiving their monthly income? Shopping? Paying debts or obligations? Or saving money? If shopping firstly comes, almost certainly your household budget would suffer a deficit. You need to change that habit. Get used to cut the income to save first. This ensures a net cash flow (net cash flow). Your household budget will be a surplus or positive. After that, you can pay the first debt or obligations.
Make sure that the debt or liabilities decreased. It continues according to the planned schedule. Beware for interest applied. We will rest the available budget used for household shopping. By making a habit like above, you will more easily reach the financial goals you want.
Many of the housewives are accustomed to budgeting. Household budgeting actually is very simple, namely to write routine monthly expenditure plan (to help to not get out of the rail) and saving for the future you want, like cars, houses, retirement funds and others. Do not forget to include debt reduction plan and or schedule of payments into your budget obligations. If you have not been rady, take advantage of the excel spreadsheet software.
3. Spending limit agreement.
Make agreements with your spouse to purchase a ceiling, for example, Rp. 500,000. If there is a purchase over the ceiling, you both agree to discuss it first (not applicable for routine purchases such as monthly expenditure, payment of electricity and others). At the beginning, this rule seems too restrictive, but we have proved that this is a big impact on budget savings.
4. Organize your financial documents
Provide a special place to keep financial documents and your important documents and Arrange neatly, so you will be easy to get if needed. This will encourage you to continue to review the budget that you have created.
5. Understanding the needs of life and health insurance
Insurance policy purchased to protect you. The extent to which insurance policy you have to protect you. For life insurance policies, act as a replacement income if the provider is unable to perform his duty (as death or disability). Understand how much the value of protection (Sum Insured) which you need.
Increased medical costs reach 3-5 times the inflation is good reason for us to have health insurance. Most of the readers would already have health coverage, whether provided by the company, or buy your own. Understand the underwriting facility (coverage) your health insurance, according to what you need. Discuss money life insurance coverage and health insurance coverage with a financial planner or your insurance agent.
6. Meet the needs of retirement funds
When we begin to plan and carry out pension funds? Start early. The sooner began setting aside funds, will be better and more affordable the necessary funds. As an illustration, for the achievement of targets 1 billion fund 20 years to come, with growth rate (return) 14% per year, the funds that you have to invest per month is Rp.760.000, -. Whereas if you are 10-year delay to the target and the same growth rate, you have to set aside funds Rp. 3.800.000/bulan.
7. Defining financial goals with your partner
Discuss the short-term financial goals and long with a partner is a moment of fun for your ideas with the merging of the two ships will create the motivation of household pliers while strengthening its foundations. Start with general things, such as car-buying plans, mortgages and others. Point out your ideas creatively. For example mortgage plan is completed before the beloved child goes to college. This will reduce your financial stress in the future. Do not buy small cars if you are already expecting little before 2 years.
Do not forget to make your plans in writing to be always on the look back from time to time and most importantly, consolidate your goals into a monthly budget plan.
8. Saving means creating income
When you make a monthly expenditure for households, it becomes a habit to save the budget. And it seems that the savings becomes something real. When we first got married, my grandmother once advised, “Keep saving your shopping for a birthday gift your children one day”. And beyond expectations, we get more than enough for that.
9. Buying for the long-term benefits
Almost all parents welcome the birth of new family members by preparing the crib. How long the baby sleeps in his place? It would be efficient if we welcome him to buy an adult size bed. So we will continue to benefit it until he is grown.