10 Best Ways to Plan Household Finance
Whether it’s a question of running a nation, an organization, or household when it comes to financial aspect, planning is must. There are so many aspects that we need to consider when we are doing financial planning for our home.
1. INCOME & EXPENDITURE: This is the basis on which rest all things depend. We need to keep a track of how much income we are generating and how much we are spending.
2. KEEPING TRACK OF EXPENSES; There are needs; then there are wants, vegetables, groceries, transport, communication, electricity, rent, etc are needs. Other areas where we spend such as for entertainment, or going out on a holiday, or shopping these are the areas where we need to spend in limit, considering our affordability.
3. BALANCE / IMBALANCE: When we compare our income and expenditure, we come to a conclusion, whether we are on the track or running off track. We should always be left with some balance / savings when we take out expenditure from income which can be considered a good sign.
4. WHY DO WE NEED TO SAVE? When we are left with extra money we tend to think of spending that money either for wants or pleasures, this, is when you need to take a break & think for a while. According to life’s different stages we need to plan for different things, like if there are dependents on us we need to plan for their financial security, our personnel retirement, children’s education, marriage, investment options, & always, life cover / insurance.
5. PLANNING FOR HEALTH: We live in an age, where everything, right from the air we breathe, to food we eat is polluted. Not considering it sufficient, most of the times, it has become natural for us, to skip our breakfast / lunch, to keep our pace with time. All these things pose us with health challenges, so we must plan to keep some money to face any sort of health emergencies. Another important thing that we can do to keep fit is to pt for food supplements which though investment again, but gives us long term benefits of keeping us healthy there by avoiding all the ill health related expenditure & pain that we undergo.
6. PLANNING FOR ECONOMIC EMERGENCIES: In today’s existing circumstances, majority of us are dependent on jobs, to meet our needs. The Companies or Organizations we work for are again dependent on the economic reforms, changes etc that effect globally & at national level. In such a case we should always plan ahead to see that we have a minimum of two to three months salary on hand, so that we may not land in trouble.
7. WHERE TO SAVE FROM? Very valid question, now when we come to a conclusion, as to which areas we need savings, according to the life stage we are in & our priorities, we need look for the money that we can spend to save & invest in those areas. Here we need to have a check on our expenses and if we start focusing on needs instead of wants, this is again no big deal.
8. INCOME REMAINS SAME & EXPENDITURE GOES UP: At one time or the other we must have heard our elders saying, in our time income was low, when compared to now, but still we managed to had plenty, but now in our times the reverse is true, because of inflation, and, in coming times also, there is very less hope of inflation going down, so when we are planning financial aspect we need to plan & save keeping in perspective future inflation rate that is many more times high than the present one, otherwise, if you plan according to today’s inflation rate & financial position we are sure to land in trouble.
9. LOOK FOR PART TIME INCOME SOURCES: When we find that there is gap in-between, what we are earning, & what we need to save for, then the necessity of generating more income, arises. Plan again, we all have spare time that we spend either for entertainment or just laying down on the bed lazily like that, that is the time we can use for extra income. Now a days there are many part-time working options that are available, using which according to our own capability we can earn up to any extent.
10. WE SHOULD NOT BE PENNY WISE POUND FOOLISH: Quality or Quantity? In most of the important areas, where spending money is involved most of the times we tend to compromise with substandard things, looking for temporary monetary benefits.
To give an example, when you choose a health concerning product or electronic items that we use on a long term basis in our houses, we should always look for qualitative products, so that you don’t keep spending money again & again on the same product. So, in essence when we are cutting down on our expenditure, or spending money to buy qualitative products, or spending for better health, we are planning for “better & bright future” People whose financial areas are planned, tend to lead a happier, healthy & great life when compared to those who are not planned. So start planning for a great future, because in short “To Plan Is to be Prepared”.
1. INCOME & EXPENDITURE: This is the basis on which rest all things depend. We need to keep a track of how much income we are generating and how much we are spending.
2. KEEPING TRACK OF EXPENSES; There are needs; then there are wants, vegetables, groceries, transport, communication, electricity, rent, etc are needs. Other areas where we spend such as for entertainment, or going out on a holiday, or shopping these are the areas where we need to spend in limit, considering our affordability.
3. BALANCE / IMBALANCE: When we compare our income and expenditure, we come to a conclusion, whether we are on the track or running off track. We should always be left with some balance / savings when we take out expenditure from income which can be considered a good sign.
4. WHY DO WE NEED TO SAVE? When we are left with extra money we tend to think of spending that money either for wants or pleasures, this, is when you need to take a break & think for a while. According to life’s different stages we need to plan for different things, like if there are dependents on us we need to plan for their financial security, our personnel retirement, children’s education, marriage, investment options, & always, life cover / insurance.
5. PLANNING FOR HEALTH: We live in an age, where everything, right from the air we breathe, to food we eat is polluted. Not considering it sufficient, most of the times, it has become natural for us, to skip our breakfast / lunch, to keep our pace with time. All these things pose us with health challenges, so we must plan to keep some money to face any sort of health emergencies. Another important thing that we can do to keep fit is to pt for food supplements which though investment again, but gives us long term benefits of keeping us healthy there by avoiding all the ill health related expenditure & pain that we undergo.
6. PLANNING FOR ECONOMIC EMERGENCIES: In today’s existing circumstances, majority of us are dependent on jobs, to meet our needs. The Companies or Organizations we work for are again dependent on the economic reforms, changes etc that effect globally & at national level. In such a case we should always plan ahead to see that we have a minimum of two to three months salary on hand, so that we may not land in trouble.
7. WHERE TO SAVE FROM? Very valid question, now when we come to a conclusion, as to which areas we need savings, according to the life stage we are in & our priorities, we need look for the money that we can spend to save & invest in those areas. Here we need to have a check on our expenses and if we start focusing on needs instead of wants, this is again no big deal.
8. INCOME REMAINS SAME & EXPENDITURE GOES UP: At one time or the other we must have heard our elders saying, in our time income was low, when compared to now, but still we managed to had plenty, but now in our times the reverse is true, because of inflation, and, in coming times also, there is very less hope of inflation going down, so when we are planning financial aspect we need to plan & save keeping in perspective future inflation rate that is many more times high than the present one, otherwise, if you plan according to today’s inflation rate & financial position we are sure to land in trouble.
9. LOOK FOR PART TIME INCOME SOURCES: When we find that there is gap in-between, what we are earning, & what we need to save for, then the necessity of generating more income, arises. Plan again, we all have spare time that we spend either for entertainment or just laying down on the bed lazily like that, that is the time we can use for extra income. Now a days there are many part-time working options that are available, using which according to our own capability we can earn up to any extent.
10. WE SHOULD NOT BE PENNY WISE POUND FOOLISH: Quality or Quantity? In most of the important areas, where spending money is involved most of the times we tend to compromise with substandard things, looking for temporary monetary benefits.
To give an example, when you choose a health concerning product or electronic items that we use on a long term basis in our houses, we should always look for qualitative products, so that you don’t keep spending money again & again on the same product. So, in essence when we are cutting down on our expenditure, or spending money to buy qualitative products, or spending for better health, we are planning for “better & bright future” People whose financial areas are planned, tend to lead a happier, healthy & great life when compared to those who are not planned. So start planning for a great future, because in short “To Plan Is to be Prepared”.
Best tips here about to maintain household economy..Great post.Thanks for sharing this post.
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