In general, when early marriage, frequent difficulties manage household finances, resulting in a deficit cash flow occurs at the end of the month, due to financial management have not arranged properly, and there has been no comprehensive planning.
1. Make planning the year ahead.
The first time, create a plan (budget) in the coming year, which breaks down within months. Planning is separated between the source of funds (funds flow in, can come from wages, other income from teaching, writing, etc.) and use of funds.
In planning has listed plans to be implemented throughout the year, and separate: main (operational cost), development costs, dissemination costs, reserves (no hidden costs). The operational cost is the cost that really must be issued each month without being able to wait, among others: the cost of electricity, water, school fees, transport, cost of essential commodities / food a month.
Development costs is the cost to increase capacity / competence and careers of family members, between; cost computer lessons, English lessons, piano lessons, the cost of college continued to husband / wife. This cost can still be postponed or reduced, if we limited financial.
Cost of socialization, among others; donation if a friend got married, someone died, social gathering. This fee can be adjusted with the financial ability, and if the limited financial, choose to follow only for an important social gathering, and it must be followed. Cost reserves; needed to cover unforeseen needs. Often, our finances are limited, so this post is often no funds.
The division of the posts that you want can be made using a separate envelope, or if possible use a bank savings account. Usage useful accounts at the Bank so that we can not easily take the money for purposes outside the budget. Separate accounts at the Bank that there is an ATM card and no ATM card, to diversify risk. Should fund an existing entry in its ATM savings are limited,
because: a) reduce the risk of falling into the hands of an ATM card lain.b people) have the same ATM card by holding cash, so if we’re not careful it can easily be tempted to spends the things that are not necessary.
How to use a credit card? Useful credit card in lieu of cash, credit card usage should be adjusted to the planned budget. Thus, no difficulties occurred because of excessive credit card usage, which in turn makes credit card bills unpaid or delayed payment.
2. Separate sources and uses of funds
a) Source of funds:
Where only source of funding will be obtained, whether there are other funding sources other than salary? Budget should be based on the obvious source of funds, so if there is additional income outside the plan, could be included in the reserve fund, which will be used for investment.
b) Use of funds:
Closely monitor the use of funds is very important, and the need to understand is the distinction between the use of long-term and short term. For example: for monthly operating expenses, can use short term funds from the monthly salary. But if you want to buy something that will be used for the long term, such as furniture (washing machine, refrigerator, television, furniture), vehicles and homes, must use the long-term funds. Long-term funds from the reserve fund was not used and have been stored in a bank account (separate from the monthly requirement), or it can come from loans. If the form of the loan, the loan also seeks a long-term loans, so that could be paid in installments every month and included in the plan / budget is prepared. Calculate how many installments per month, does not interfere with monthly cash flow?
3. Create forecasts for T accounts (balance sheet) simple and its cash flow
To determine the position of our wealth, create financial balance sheet forecasts. From the financial balance we will know how much wealth (assets), which consists of current assets (cash and funds in bank accounts that can easily be withdrawn), fixed assets (furniture, cars, houses), as well as other assets (excluding current assets and fixed assets) and then we calculate how much total debt, separate short-term debt (payable monthly) and long-term debt. Furthermore, we can calculate that equity is total assets (fixed assets + current assets + other assets) minus total debt.
Cash flow needs to be made to determine the flow of money coming in and money that is expected to come out. By making a monthly cash flow, it is expected to reduce the occurrence of shocks in the management of household finances. And with the plan, which was then poured in the prepared monthly cash flow, for one year ahead, we can analyze whether the financial management of what we are not fair. Cash flow should be discussed between husband and wife, so the two agreed to perform according to plan written.
If there is additional money coming in, such as bonuses, incentives, or money from other revenue, the money can be put in savings, which can be used as a backup in case anything unexpected.
Hopefully, with the financial management of a mature, yet flexible enough, a husband and wife will be more able to focus on individual career development, as well as giving attention to the development of the sons of his daughter’s education.
