5 useful tips to organize your family finances. Do you want to know how you can control your expenses in a more efficient way? Do you know what you should prioritize when saving? Well, do not worry because in this article I am going to solve these and other doubts that you usually have. In addition, I will give you 5 infallible tips to optimize the organization of your family economy.
The common society has serious deficiencies in economic and fiscal terms due to little or no learning in economic matters that is offered in institutes and universities. Financial education should be a recurring and obligatory subject in educational institutions since lacking it can cause difficulties when making the right decisions (or at least assertive ones) that positively affect the family economy.
It does not matter if you live with a partner, with children, or even if you are single and do not have many obligations. Knowing how to organize your personal finances will help you overcome any unforeseen events in the future.
Do not miss the best tips to organize your family economy in the best way, learning financial education!
Why do you need to organize a family budget?
First of all, it is necessary that you understand the definition of budget of the family economy, so that you can make one accurately.
A family budget is a useful instrument to organize your capital and control your monthly expenses in a more efficient way. Since it helps you have your monthly payments planned and have money left over to meet unforeseen expenses.
In other words, it gives you a forecast in advance of what you are going to use the money you earn. It is a great support to plan your family economy effectively. It is extremely important to do it, since it allows you to manage and cover everything you had in mind.
5 useful tips to organize your family finances. In fact, the large number of debts that are acquired originate where there is no planned family or personal budget and, consequently, there is a misuse of assets.
What are the benefits of planning family expenses?
Now that we have analyzed how useful it is to organize a family budget. Whether you are single or live with more members, I will explain the great benefits you get from having all your expenses Which you have plane.
Better control of expenses and prevention when mortgaging useless debts:
When you have organized a family budget, it will be much easier for you to have all of your money entries controlled, freeing yourself from debt and reaching the end of the month more calmly.
Allow to eliminate unnecessary waste: Have you made a purchase that you later ended up regretting?
This will no longer be a setback if you have an organized family budget with the amounts destined for the disbursements that you are going to make.
Evaluate in a better way what and how we spend our assets:
Preparing a family budget allows you to record all your payments more precisely, helping you to adjust your expenses and avoiding those that you see as unnecessary and superficial.
Identify surplus money:
Once you have done your family budget, you may be surprised that there is a proportion of your wealth that is left over. It is possible to save money with this surplus, which will be quite beneficial.
What should you take into account when organizing the family finances?
To know how to organize the home economy, it is important to keep in mind that the main objective of making a family budget is saving . In this way, you can anticipate any inconvenience that may arise in the future.
Fostering a culture of saving helps everyone in the home see how important it is to manage money well and you will get this habit to spread to other facets of life in a positive way. For this reason, it is important to learn about financial education.
Now that you know what must be taken into account for an efficient organization of the family economy, it is important to classify household expenses intelligently as follows:
- Necessary fixed expenses: These are disbursements that are present in your computation as mandatory payments month by month, for example the rent of your home, services such as electricity, water, gas; bank credits, the payment of a course you are doing, etc.
- Variable necessary expenses: That is, they are mandatory payments that can be reduced if you know how to monitor your consumption.
For example, using led bulbs or unplugging appliances that you are not using are ways to keep your home budget from being so high.
It is also important that you watch your investments in financial products.
- Optional expenses: They are all those that are not payments that are essential and that can be easily discarded from the budget.
An example of this is eating in bars and restaurants, buying movies, tobacco or going to the movies, among other activities. For this reason, you must have the need to prepare a monthly budget with expenses and income.
Taking this into account, you will be able to know how to organize a family budget. Now, how to create a budget? What should you include in it?
Create a family budget that takes into account future expenses and income
First of all, you should examine account statements, old invoices and receipts or any records and notes that allow you to know what you regularly spend money on.
Having this information, you can classify the expenses you make, for example the fee to entertainment platforms or going to the movies, among others. Next, place the category of leisure expenses; the mortgage in fixed expenses and so on.
For this, it is advisable to have a family meeting, in case you do not live alone, and clarify with the rest of the members of the family unit how you can contribute. It is important to organize the domestic economy based on monthly and annual income and earnings.
In this way, you will be able to make your precise budget, helping you with tools such as Excel, which will allow you to calculate the expenses and income that you have at home.
In addition, you must remember that for something to be necessary in the estimate, it must have three important requirements: if it is necessary, if it is useful, and that it is something that does not exceed the budget.
It is also important to take into account relevant elements such as food, housing, transportation, health or leisure in your workforce. Preparing a family budget is complex and, however, it will return great benefits.
5 useful tips to organize your family finances. Not being clear about what your expenses are going to be can result in non-payment of the home rent, delay in commitments made and affect your reputation.
For this reason, managing your patrimonial capital well allows you to know what income and expenses you will have and in this way not waste, thus avoiding unnecessary worries to avoid living “with the noose around your neck.”
Tip 1: Write down expenses and use credit exceptionally
To do this, you can use an application that allows you to write down all your expenses and thus make a budget more easily. It is essential to have a deposit guarantee fund to ensure your economy.
You should not use credit cards and bank loans on a recurring basis to avoid future financial problems.
Tip 2: Don’t over-borrow and get in the habit of saving
According to the National Institute of Statistics, the household savings rate was 3.7% based on disposable income in the third quarter, compared to 4.9% in the same quarter of 2021.
Experts advise not to allocate more than 35% or 40% of the income to the payment of all obligations, although this will depend on each family.
To save, you must follow the 50/20/30 rule, where you will distribute the income in:
- 50% to cancel the necessary expenses
- 30% for replaceable
- 20% allocate it in savings accounts that allow you to get benefits.
Tip 3: Have long-term goals
This refers to buying a car or having an investment fund. It is advisable to start as soon as possible with goals that you have planned.
The sooner you start paying it off, the less work it will cost you to get it, you will even generate extra income thanks to the interest that you can get by making the money profitable in a savings account.
- Also, it is necessary to consult the National Institute of Statistics, if you are self-employed, to find out the statistics and corrective measures in your sector.
Tip 4: Consume responsibly and educate yourself in finances
When it comes to consuming, always compare to find the item that stands out in value for money, and avoid hiring services that you do not understand 100%.
Therefore, it is convenient to understand concepts such as Euribor, the TIN or TAE to know how banking items work and understand even their “fine print”. These points are important to know how to manage your personal finances.
Tip 5: Be cautious
5 useful tips to organize your family finances,
It is important to understand the financial products that are used and to know the risks of credit cards and loans. It is also essential that you have an emergency fund for tomorrow.
On the other hand, it is to recommend that you examine the statements of the cards and accounts you have. Especially if you detect any fraud to notify the bank. Knowing how to clean up the family economy includes knowing and detecting possible financial deceptions.
In conclusion, organizing your family economy does not have to be a problem. Following these tips you can do it without much difficulty.