Family Finances – A Diligent Homemaker is the Financial Manager of the family. She wisely and frugally spends and saves the family’s income. She makes sure the bills are paid on time, and the paperwork is successfully filed.
Because you are already multitasking between work and home or, just within the home taking care of the children, your husband, and other family members, the additional task of money management sometimes weighs on you. So, it’s easier to outsource the financial responsibility to your husband.
But, when you use your powerful influence to help manage your family’s money, you can achieve much more than if you simply left the finances to your husband alone. It’s high time family finances climbed up on top of your list of priorities. What you need to realize as the woman of the house is that not knowing enough about money can make you feel very helpless.
Aside from the day-to-day money issues, it is essential for you to take charge of your family’s financial futures. Paying the bills and being aware of where the money goes is certainly part of overall financial literacy that you should have. But long-term financial planning should be of utmost importance to you. If money problems are raising their ugly head and causing tension in your family, consider this simple five-step plan to manage your family finances successfully.
There are a few things you can do to feel more confident about your financial futures. If you are not already involved in your general household finances, start now. Educate yourself on the monthly bills and other monetary responsibilities in your household. Make sure you are aware of your husband’s financial arrangement and estate planning. If your husband is keeping this vital information away from you, his wife, that’s because you really don’t care or you are not interested.
1. Gain Financial Confidence
Managing Your Money All-in-One For Dummies is an easy-to-understand guide that shows you how to assess your financial situation, calculate debt, prepare a budget, trim spending, boost your income, and improve your credit score. You’ll find ways to run a money-smart household, reduce waste, and cut medical and transportation expenses as you tackle your debt head-on and develop good saving habits.
2. Establish A Financial Partnership With Your Spouse
Financial problems are listed as a major cause of strife in the marriage relationship, and it often starts when one partner is being kept in the dark.
If your husband has more financial skills than you, he will naturally take the lead, but this is no excuse for you not to be involved in the family’s financial situation. You both need to understand the issues that you are facing and make decisions as a team.
Decide to work together setting your family’s budget and paying the bills. Keep each other fully informed and regularly oversee each other and discuss your concerns to stay accountable.
3. Face The Realities of Your Finances
Consider the current state of your family’s finances. Take responsibility for the mistakes you’ve made to contribute to any problems, and decide to learn and practice better money management skills.
Women are known to be spendthrifts. They also make diligent savers compared to the men. Whether you are a saver or a spender, you can find the proper balance to manage your money effectively. Identify what’s truly important, so you can keep those values in mind while managing your Family Finances.
Making smart decisions early will make a big difference when you are faced with an unexpected change in circumstances. You can maintain your lifestyle or at least be prepared to manage whatever financial challenges you are faced with.
4. Work Out A Family Budget
The key to good money management is expense management. Learn to live below your means and be content with what you have. This is hard for all of us, but it is an important life lesson. The key is to develop a good budget which is basically a spending plan. If you have never had a budget or trying to manage your finances better this Budget Book is meant for you.
List all your sources of income and keep track of all the ways your family currently spends money. Set financial goals you’d like to achieve. Create a budget that will help you meet those goals. Measure your progress on a regular basis, and reward yourself when you achieve your goals.
Allocate 10 percent of your money to fun, 30 percent to savings (long-term savings for things such as college, retirement, and short-term savings for things such as family vacations and new appliances, and 60 percent to committed expenses such as your tithe, housing costs, insurance, and groceries. If you have a large amount of consumer debt, pay it down before you invest much into retirement or long-term savings
Once you have a good understanding of your household budget, discuss with your husband about how best to save and invest money as a couple. This is not a time for quarrels or arguments. Try to agree on financial goals, level of acceptable risk, and be sure to resolve any issues related to shared debts and assets.
5. Set Aside Funds For Regular Savings
It is very important to establish the discipline of setting aside money for inevitable expenses and large purchases, such as the down payment for a home, education, and retirement. This will allow you to spend from cash resources and eliminate the need to borrow when that is not wise. You will be surprised by how much can be accumulated by a simple but disciplined savings program.
Do not plan your savings after you plan your spending, those who try this rarely succeed. You may decide to make your savings a percentage of your income, and this will probably change as you go through the various stages of life. But no matter the amount, the sooner you start saving the more you will be able to save, so plan to start right now.
Also encourage your children to save. Teach them financial management early, so that as they grow, it becomes a part of them. Get them Piggy Banks when they are little and as they grow older, let them have their own bank savings accounts.
If you have financial problems, seek help before it is too late. Family Finances problems can be solved, no matter how bad, but it often means changes, some of which may not be that easy. A qualified financial planner will help you identify the problem areas and think through solutions that will work for your family.
Finances can be a dividing factor in marriage, but they can also bring you together in a new and deeper way. If you are willing to follow this simple 5 step plan listed above, your financial situation will improve, I assure you.
