How to manage money?
Date Added: April 16, 2010 06:54:46 PM
Author:
Category: Home: Money Management

Money management is one of the most difficult tasks, whether it is carried out in business matters or at home .Mom and Dad are responsible to run the car of home. Dad does efforts to buy petrol and Mom drives it. More specifically, Mom is responsible to look after the financial matters of home. Keeping family’s budget on track can be tricky to deal out if proper planning is not done. When money shortage is felt the chances of clashes among family members may be raised. All relationships may be disturbed and home sweet home may turn into a depressing fight club.  To avoid frustration especially at the end of month some key points must be kept in mind.

Planning

Budgeting &

Financing

Have you ever noticed why people lose control over their expenses? One reason is surely the increasing prices due to recession and the other may be that everybody is supposed to cope with unlimited wants and scarce resources. For the time being these reasons are ignored and have a look on another side of the picture. Mom is assumed as the Minister of Finance department. In this role she must prove herself as a good finance manager. It is a challenge to her organizational and managerial skills. She needs to perform this duty carefully.

Review: A review of all expenses and resources must be conducted. For this review, she should categorize the requirements which need due importance. For example kitchen, schooling, transportation, utility bills (credit card, gas, and phone) etc. and then she has to observe the trend of expenditures. Whether it is increasing or decreasing what are the reasons for this trend.

After reviewing all attached departments, consultation must be acquired from others. Now she should conduct a meeting with all family members and listen to their demands and issues. While listening to their demands do not make commitments and do not present any decision.

Participation from all members is essential. If all family members are involved they would have to give some suggestions. Note down their suggestions give due credence to their recommendations.

 Now it is time to do proper planning. But before planning, you must make a list in which prioritization of items is conducted. Allocate finances or money to all items as they require and as per their prioritization.

After allocating funds to each item see, if some funds are available for savings. Savings are considered as emergency funds. In harden times; these saved funds offer their help with whole heartedly. They work as cushion and back support, so do maximum try to save money, by doing investments, by buying prize bonds, or by purchasing shares etc. During constraint situation one should not lose temper face the situation and plan how to cope with their circumstances. One should not forget the rationalization of item and expenditures. Being responsible head, you are supposed to take control over the situation; you are the person to plea beside family member for assistance to pull out the family from crisis.

 

Written by: Paid Directory List