Getting the financial aspect of your life and your household organized will make you feel comfortable and relaxed. If you do not properly organize this aspect of your life, you will constantly feel pressured by debts and bills. This kind of stress is not good neither for you, your partner and anyone else in your family. This is why it is so important to ensure that everything that’s related to your finances should always be organized.
Not only will you feel less stressed if all of your bills and debts are paid, but you will also have room to start planning for future investments. Whether its house renovations, buying a new home or buying a car, you will probably manage to accumulate the money in a much shorter time if you properly organize your income.
Keep in mind, even if you do create your own budget that does not mean that you cannot afford to spend some cash on entertainment, fancy clothes or anything else that brings happiness to your family. Sure, your shopping freedom might not be the same as it was before, but you will still have it.
However, tracking your expenses and organizing your family bills is just about creating a budget and sticking to it. You will need to do a bit of research about where your money goes, prioritize your expenses and pay back debts with the highest interest rates. To help you in this endeavor, here are some tips which you will surely find useful for 2020.
Making this kind of change in your lifestyle has probably been inspired by something that’s happened in your life. If you have been inspired by a set of goals then you should use them as a way to motivate yourself moving forward. Assuming that you do have goals and you do want them to motivate them, you should first write them down. Are they immediate or long-term? An immediate objective is something like buying a new car, buying a computer for your children, planning a wedding and other expenses in this price range. While a long-term objective is focusing on something that requires a bit more investment such as purchasing a new house, moving to another country, going on a month-long vacation in Europe or Asia.
Keep in mind that your goals do not always have to of the luxurious type. Your objective may be to pay off outstanding debts, your most expensive bills, and other similar necessities.
Use a financial app
Some people prefer to do old school tracking of their income and expenses, but if you don’t have the time to do such a thing then you should consider downloading and using a financial app. Most of them can be found on Android’s Play Store or on Apple’s App Store for completely free. Although, there are quite of few of them that are paid which provide you with a bit more features. Check out Bebasbayar if you are looking for a user-friendly application that is completely free and filled with all kinds of features.
Track your income and your expenses
Once you have determined your aim in life, you will need to do everything in your power to realize it. To do that, you will need to track your income and the costs in your life to determine whether the realization of those goals is really possible.
The first thing you will need to do is write down both yours and your partner’s salaries, any future bonuses or potential raises and so on. But, you will also have to write down all of the necessary costs in your life. You should exclude luxuries and then start writing down things such as electricity and other utility bills, food, home supplies, child support and everything else that comes to your mind. Once you have all of this written on paper, you will have an idea of how much money you will be able to save a month and where most of it goes. These numbers can now help you create a budget.
Creating a budget
The next step to organizing your family budget is to create your own budget that everyone in your family should follow. Set a certain amount of cash that you will be able to spend every month, subtract all the necessary expenses and then split it to yourself, your partner and your children. You must not deviate from the budget and every member of your family should work toward sticking to it. If you run out of money from your budget, get some extra cash only if extremely necessary. Assuming that the budget felt a bit too strict for your first month, you can make a few changes to make it a bit more bearable.
Pay your bills
One of the biggest mistakes people make is spending their money on luxuries or other non-necessities. Instead of going out shopping for things you will probably never use, the first thing you should do with your paycheck at the start of the month is to pay all of your bills. The more bills you have outstanding, the worse your credit card score. The worse your credit card score, the chances of getting a personal loan is much lower. Assuming that you have a long-term goal of purchasing a house or investing in your own, you will probably require a loan.
It is also very important that you pay back your debts as soon as possible because they too affect your credit card score. Not only will they lower your score, preventing you from getting a loan, but they also have an interest rate that increases over time. Instead of spending thousands of dollars extra years later, pay it now and you will be free from interest.
Stick to the plan
All of this seems complicated and too much, but once you get the hang of it, it will get much easier. Just make sure that you stick to the plan no matter what.