Make it a daily habit to account family expenses

I am sure most of you readers, when reach middle of a month very often ask a question yourself, “Where has the money gone?” Mind filled with a lot of questions, you may not find the source of those expenses. Very often we neglect the amount paid to purchase simple things, and we never enter those amounts in account books. We often forget the fact that ‘5 simple purchases’ is enough to empty our pockets beyond our expectations. Best solution is to keep note of each and every income and expense and write it on a diary if possible on a daily basis.

You need not wait for a New Year to start a new habit. You can start any good habit any time round the year. It’s never late even if you start in the middle of a year. Next year onwards you can organize it better. It’s better to start than not to do it. Keeping track of daily expenditure is the best solution to find where we spend our money uselessly and it helps us to put a check on those extra spend items. Just you need is 5 minutes from those 24 hours to think for a while, ‘what have I spend today?’ If you begin this habit today itself, by the same time next month, it’s not a difficult task for you to find where you are spending extra. By this way, you can decide if money can be saved any way by reducing those expenses.

You can start this habit as the age of 8

It’s not an easy task to start a habit when you become an adult. It’s better to start such good habits during early ages. When you teach kids ‘saving habits’, ask them to keep note of those expenses that he spends using his pocket money. The amount may be small, yet it helps him to start an early habit to keep track of his expenses at younger age. Also through such notes, it’s easy to calculate total expenses of the family and to cut certain items if possible. Even a simple save or spend can easily fluctuate the family budget, particularly if it’s a middle-class family.

Separate accounts for expected and unexpected expenses

Grocery, fees, loans, rent, newspapers and magazines and regular medicines come under expected income while a surprise party, hospital, gifts and repairs come under unexpected expenses. Those unexpected expenditure can’t be controlled fully, yet we need to reserve a certain amount from monthly income for such expenses too.

Periodic analyze at month end

It’s better to analyze the prepared account every month end before you begin with data of next month. If you find that your family budget is small, try to find its reasons and take wise decisions to cut a few expenses. By this way it’s possible to reduce our electricity and telephone bills next month.

Monthly savings

Try to save an amount every month and allocate money for it as soon as you receive the salary. Otherwise you may spend that money for something else. It’s better to join schemes and transfer money to it, first week of every month. Slowly we will adjust our expenditure with the money available. Gradually it forms a habit. In case, due to some unexpected expenses it’s not possible to deposit that amount, consult it with your family members to find an alternative method. Very often, wise allocation of money helps you here.

Each member should have an idea of income of the family

Last, but not the least every member should have an idea of source of their income and average overall expenditure every month. Even kids should have a vague idea of their parents’ income and problems related to money. If so, every member of the family can adjust himself to reduce overall expenditure of the family a lot.

All accounts should integrate

Also never hide a particular expenditure, saving or income source from family members. Also, never hold contradictory records. All records should match. If not, it becomes difficult to take right decisions in family budget.

So, I have provided a few simple tips in writing daily account. It won’t take more than 5 minutes if every member of the family is willing to reveal the money spend by him for that particular day. Family is a responsible system and each member has his own duties and responsibilities. Each one has to play his role nice. Then only you can dream for a better future.

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