Ways to Save Money – Managing Your Family Finances

Rather go to bed without dinner than to rise in debt. – Benjamin Franklin

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Ways to Save Money - Managing Your Family Finances
Ways to Save Money - Managing Your Family Finances
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Sukhdeep Singh

Sukhdeep Singh

Write Something To Right Something

Passionate about playing with words. Sukhdeep is a Post Graduate in Finance. Besides penning down ideas, he is an expert online marketing consultant and a speaker.

Any sensible family has a budget that lays out how much will be spent for household and other purposes. Without such planning, things would quickly go awry – Walter Ulbricht

HIGHLIGHTS

  1. Create a budget & set financial goals.
  2. Calculating monthly income and expenses
  3. Compare available budget with actual spending

The first step you need to do it for efficient management of the family budget is to tune a relatively short time of reflection on this issue. Many of us think, making a saving of time of some minor expenses of daily life, they fail in this way to streamline the budget. However, management of the budget is a planning problem, a by doing simple math we can bring the train back on the track.

How To Write A Family Budget

The budgeting starts with emphasizing income. You need to figure out your fixed, variables, and exceptional costs on monthly basis. To do so, first of all, you need highlight expenses; make an excel sheet of expenses on a monthly basis, as analytical as possible, dividing them into three major below cited categories.

Fixed Expenses

  • Utilities: Gas, Satalite TV, Internet, Electricity, Water, Telephone
  • Monthly/Yearly Auto insurance
  • Groceries and Expenses
  • Other Subscriptions: Gym, Clubs etc.

Variable Expenses

  • Food
  • Clothing
  • Transportation (other than common): Gasoline
  • Repair / maintenance of car
  • Entertainment: film, beer, or spending in the restaurant etc.

Exceptional Expenses

  • Birthdays, Gifts, etc.
  • Electronics Gadget like Mobile Phones
  • Vacation

Try To Cut Down Your Expenses

Adjustment of expenses from top to bottom, starting with the fixed costs which, most often, is the heaviest burden that we tend to accept without reviewing them.

ALSO READHow to Save More and How to Be a Rich Man.

To start with, take every important step that you can to reduce your monthly rates; look out at monthly installments, credit card bills and others expenses. Try to bring your expenses down for luxuries.

Reducing Variable Expenses

Reducing variable expenses is very hard to believe that we can eat less to make savings, but it is very plausible to cook more and to do our shopping at the market instead of supermarkets, although less comfortable.

Keep A Close Eyes On Loans

Keep a close eye on your credit card and bank statements. At any moment, you see a change in rates on loans, the first thing you should do is to contact the bank. In addition to a request from the agency that contracted the loan, they may submit a written request. These kinds of unforeseen changes can disturb things.

Do Not Let ‘Sales’ Make You A Dumb

We are heading towards sale’s season and it would be good to avoid to buy products just because they are on sale. Maybe you and your family do not need them now and thus become useless. We all know that during sales, nothing goes cheaper. Most often, the products carry a hidden price and that is reduced during sales to lure us.

Try To Compare Offers

To get the best price on the market for fuel, electricity, internet or phone, you should always compare prices of different suppliers. For almost any product or service there are several offers with different prices. Before switching, be careful about the penalties when changing suppliers.

ALSO READHow to Save ₹1 Crore in 15 Years and be a Millionaire

The most important thing is to have an overview of your income. Be realistic! If you really want to know how much you spend in a week, trying to keep a daily diary to write down what the is going.

Talk About Money Within Family 

  • Assign a timetable to discuss the issues of money management.
  • If a family member has changed jobs, or his financial situation occurred important changes, make sure you allocate more time to discuss these issues separately.
  • Encourage each other to discuss openly any financial problem you think would be necessary, such as the need to ask for a loan.
  • When you talk about money, make sure you have removed any factors which could distract (e.g. TV or phone).
  • Hold all the incomes sources informed on individual income, expenditure and changes that have occurred, to avoid surprises.

Personal or family budget can be a very useful tool. It can be an important step in creating an effective system to help you get out of debt. For many people, the composition may be a difficult task, but it’s not complicated at all.

Make a budget because this is going to tell your money where to go instead of wondering where it went. – Dave Ramsey

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