Money Management for Home: The household budget has deteriorated, these methods will make it easier to run the household...
Nowadays people often face the problem of not being able to manage their household budget properly. The impact of rising inflation is affecting everyone, whether ordinary or special. Tips are being given to you here on how you can protect yourself from the onslaught of inflation and how you can manage your household budget properly.
Adopt the approach of investing first instead of spending first
There is a need to change this sequence of first earning, then spending and then saving, under which now we should first bring investment after earning and then meet the expenses. We are saying this because as soon as money comes in hand, the eagerness to meet all the expenses increases due to which the goal of saving gets left behind.
Investment and saving are not the same thing, understand this
Work by understanding the difference between savings and investment because the money lying in your account or saved at home does not give you complete security for future needs. It is not only important to save money but you also need to invest it to grow it further. Make the investment after fully thinking about what kind of returns it is going to give you in the future.
Automatic debit for automatic savings
If you keep the means of savings on automatic mode, it can prove to be more correct because as soon as the money comes, it is best if it goes into the savings part first. If you think that you have to fulfill your household or personal needs first, then it may be difficult to withdraw money for savings later. Therefore, you should keep instruments like SIP, Post Office RD, or PPF on automatic mode so that their money gets deducted first and then you get it for expenses.
Do not keep all the money in one place, invest it in different places
Just as we do not keep all the money together during a journey but keep it in different bags or purses, a similar approach should be taken while driving home. Instead of investing all the money in one place, keep it in different savings or investment instruments. For example, if you have a bank FD then you should also have PPF, if you have a mutual fund then keep investing money in debt funds also. Choose and invest from government schemes as per your needs. There is a big rule of investment that one should not keep all the eggs in one basket, so now you must have understood its meaning.
Explain the concept of budget to every member of the house.
If there is no healthy discussion about money in any house, it can sometimes become a cause of financial danger, hence it is important that the members of the house (including children) take part in such discussions. At least once a week, you should sit together with everyone and look at the accounts of the expenses happening in the house. Also, introduce the children of the house to the concept of budget so that they avoid falling into the trap of reckless spending and understand how important it is to value money.
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