How to Fix Family Finances – Every family has a different financial situation. Some are already adept at managing financial matters and some are not. What if the family's financial situation is already unorganized? How to fix it?
No need to worry, there is one way you can do, which is to make a family financial plan! Family financial planning is a money management plan that is carried out together in a family to achieve certain goals so that they can be worry free from financial problems.
Whiz has 6 ways to fix family finances using financial planning principles that you can apply! Let's see how!
Also Read: How to Save 1 million Per Month – Must Try!
6 Ways to Fix Family Finances
Whiz has 6 ways you can fix your family's finances. Let's see together!
1. Understand the Family's Financial Situation
The very first thing you should do is understand your family's financial situation. The way is easy, make a list containing the assets, debts, and receivables that your family has. Especially for the property section, you don't need to include assets that don't have a big selling value in the future, for example stoves, sofas, etc.
Then, after you calculate the total, subtract the amount of assets with debt. That way, you will get a total net worth. If the total assets are greater, then your family's financial situation is good and vice versa.
After doing this step, you can see how much net worth your family has, so you can clearly define the priorities and goals you want to achieve.
2. Check Family Financial Condition
The second step, you have to check the financial condition of your family. How is it different from the first step? In this step, you have to look at your financial condition and spending habits in more detail.
Try evaluating with your family whether the money you have had is enough for your daily life? Does your family often go into debt? Does your family have any savings?
To make it easier, you can create a detailed table that contains all the assets and debts that each family member has. In addition, also record the family's monthly income and expenses.
Compare the amount of expenses with salaries, then compare them with savings. This way, you can see what your family is spending the most money on. In addition, you can also identify oddities or financial problems that you have not been aware of.
3. Determine the Target You Want to Achieve
The next step is to define a common target or goal to be achieved. When we have a goal, it will be easier to be patient and enthusiastic in the process.
You can make small targets first, such as wanting to buy a motorbike. After that, start making bigger and important goals for the common good.
4. Determine Financial Budget
After determining the target, you need to make a financial budget every month. Record the income and expenses made in one month, then determine whether it is included in the routine or not.
After that, make expenditure sectors in more detail, for example house installments, children's education costs, daily spending money, etc. Determine the nominal money for these sectors and as much as possible do not spend more than the nominal that has been determined.
Don't forget to set aside money to save or invest. The goal is for families to have an emergency fund in the future.
5. Create Priority Scale
The fifth step is to create a priority scale. Together with the budget that you have created, you also need to determine the priority scale of the spending sectors that have been created. The goal is that you can focus on paying for the things that are a priority first.
6. Do It Consistently
Finally, do all these steps consistently. Make sure all family members participate in an honest and disciplined manner. This activity must be difficult to do at first, but if we are consistent and disciplined, surely good results will await us.
Also Read: 8 Exciting Savings Challenges: Let's Try it!
Well, that's 6 ways to fix family finances that you can do. Always make sure to make a financial budget and save! Do it consistently and invite the whole family to participate.
Come on, download the Whiz application and experience your financial convenience right away
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