Psst! Here’s How to Manage Your Household Finances So That You Are Not Twisted in Debt

For married couples, whether young or old, managing household finances is a daunting task. If you make a mistake, your family’s finances can be bigger than the pillars. If you don’t want to get stuck in debt, find out how to manage your household finances here! Futher reading at

When married, it is rare for a married couple to have a quarrel over family finances. This applies not only to young couples but to couples who have been married for many years.

Money has always been one of the most sensitive things

Money has always been one of the most sensitive things

In the family, so it needs to be taken care of and well managed. Therefore, for spouses, you must be able to manage your household finances properly. By the middle of the month, the existing funds had been depleted while there were still many needs to be met by the end of the month. If this is the case then usually the only way to go is to apply for a cash loan. While there are still unpaid installments and debt continues to pile up.

Here’s an example if you mismanaged your household finances. The consequence is that your family’s finances will inevitably result in a shortage of funds that could result in a pile of debt that cannot be paid on time. The worst thing that can happen to your family is that you have to sell your family assets to pay off debt and meet your household needs. Of course, you don’t want this to happen, do you?

How to Manage Home Finance

How to Manage Home Finance

In order for things like the above not to happen, the couple should be quick to take action by managing their household finances properly. Good Finance has several ways of managing the household finances that you can apply:

Removing the Remittance of Allocation Fund

The first way is to allocate expenditure funds. Where does the income from your income go? You can try to do a calculation with the 50:30:20 system to make a budget allocation. The calculation of this allocation is done by way of 50% for primary needs, 30% for savings and investment funds, and 20% for lifestyle needs such as clothing shopping and vacation.

Suppose your monthly income reaches $ 8 million, then you can set aside $ 4 million for your basic needs, $ 2.4 million for savings and investments, and $ 6.6 million for lifestyle needs. With the allocation of expenditures, you already have a fixed budget that cannot be interrupted so that all needs are allocated for their own expenses.

Create Monthly Shopping Details

If you already have an allocation of expenses, you will need to create monthly spending details as most of the income is usually used for monthly spending. So don’t let it happen when you spend without proper planning, suddenly the budget for monthly spending swells over the limit. Make a detailed list of monthly shopping needs and details ranging from the amount to price. That way, when shopping you will avoid being hungry and buying unnecessary necessities because you have to shop according to the shopping list you have created. Compare prices in a few places or supermarkets or find a supermarket that offers discounted deals or promotions.

Prioritize Charges and Debt Installation

You need to know that your basic needs are not just about your daily expenses, but also your often forgotten bills and installments. Why are debt and debt installments being a basic need? Because both of these are compulsory for you to pay. First check what bills and installment debts you need to pay off this month, ranging from electric bills, PAMs, phone calls, credit cards, mortgage loan installments (Home Ownership Credit), and more. So when allocating funds, these postage and debt installments should be in priority status.

Target Daily Spending

How to manage your household finances is one of the most effective ways to avoid spending over budget. Just try to target how much you spend. Let’s say every day you can spend up to $ 50 for office and lunch expenses. Then bring in $ 5 a day. If you want to bring in an emergency fund or a mutual fund, then set up half of your daily spending target of only $ 25. If it turns out that the extra daily spending budget is left over, then put it right into the small savings you can open at the end of the month. You’ll be surprised to find out how much money you can spend on the rest of your daily expenses.

Consolidate Income for Savings and Investments

Setting aside a monthly income fund for savings and investments is very important. The goal is that in the future, we can achieve financial independence. Financial independence is a time when we are in a very unproductive age. Choose the type of investment that works for you. If you are a risk-taker, you can take stock of stocks, bonds, and mutual funds. But if you don’t like to take risks, then get an easier investment of deposits and gold. Remember, don’t put all your funds into one type of investment. Take at least 2-3 types of investments. This 3 million way of managing your household finances is to split the risk so that when you have an unwanted risk, you will not lose it because there are other types of investments.

Follow the Insurance Program

Indonesian people are not very aware of insurance. Although insurance is very important to the family, especially for the breadwinner. At least you have family health insurance so if there is a risk of sickness in the event that one of your family members has to be hospitalized, then the family finances will not be affected as all costs will be covered by the insurance. But especially for the breadwinner, it is also advisable to add life insurance so that when the death of the breadwinner dies, the family can earn a living wage. So, enter the cost of your insurance premium when allocating your spending money!

Debt No More Than 30%

In fact, the only way to manage a household’s finances is to avoid debt. The debt ratio should not exceed 30% of your monthly income. Let’s say your monthly income is $ 15 million, so don’t let your total debt increase by $ 4.50. If you exceed these numbers, then your finances are out of control due to the overpayment of debt. So now that you want to apply online, first calculate all your monthly loan installments. If the ratio exceeds 30%, then pay off those debts first and once they are settled, you can apply online.

Discuss Always Financial Condition with Spouse

When it comes to managing your household finances, always discuss your financial situation with your spouse. Don’t let yourself take a step and decide for yourself, whether it’s allocating funds, spending details, and applying for a loan. By discussing your financial situation with your spouse, you can get feedback and discuss which option is best for your loved one. Hopefully, with the way you manage your household finances, you and your spouse can avoid debt.

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