How to Manage the Family's Finance


A sad fact I saw in many of my friends. They have enough income but apparently had a chronic financial problems, such as credit card debt, no deposits, not preparing any education fund, etc.

What causes this financial problem is because they do not have an adequate understanding of managing their finances. Their financial literacy is very weak.

Aware of that, with the spirit that wants to improve the financial literacy, I wrote several articles about how to manage the family's finance, as follows:

How to Choose the Best Education Insurance. How do I choose the best education insurance? This article is shows them.

Seven Tips on How to Choose Health Insurance. Most of us don't do proper preparations before buying a product. As a result we turns disappointed. If you want to take a health insurance, read the article, which discusses in brief but dense in matter of Tips on choosing health insurance.

How To Set Up A Pension Fund – Don't Rely On Our Employer. Pension funds from companies cannot be fully withdrawn. We should prepare the pension funds ourselves. It is not difficult, as long as there is a will.

Pension funds is easy to prepare. According to a recent research of an international financial institutions, only a small number of people who prepare their retirement very well. Whereas, setting up pension funds is quite easy, as long as you know how.

How to invest, what and how to fix it. An investment should achieve a financial goals. But, a lot of people doing wrong investment. How do I fix it to achieve the best?

Financial planners: Why Need and how to choose it. How to quickly manage your finances in a healthy or treating the financial issue is to use a financial planner. What will you get from a financial planner, I will describe in the article, based on my experience.

How Do I Set Up the Household Finances After Having a Child? The presence of children have a huge financial consequences. Unfortunately, many families are not aware of it. The article discuss what are the financial implications, measures and anticipation in a presence of a child.

Saving money by buying a Private Label brand at supermarkets. I find that one of the ways to skimp is by buying a private-label brand at the convenience stores. Why? Find the answer.

Manage spending, a key to healthy Finances. It’s a wrong focus, if you only pay attention to your income or salary in managing your finances. Unfortunately, most people are doing so. I discussed why it is critical to manage expenses and how to monitor the spending.

Investments Fraud: How to Avoid It. investment fraud never stop haunting all of us. Look for the tips to overcome fraud investments.

Managing Expenses, a Healthy Financial Key


Expenses often escapes from our attention, because we're busy chasing on income. Whereas, managing our spending is a good and healthy financial key instead.

The problem is not in our less or low income. We only focus on how to get a high income and better salary and forgot to control our spending.

In fact, investment is the residual between the income and expenses. Even though our revenues increased each year, if we have an uncontrolled spending, there will be nothing left to invest.

We never pay attention to it, consequently we don't know our own expenses. Not even the details, how much is our total monthly expenditure, we don’t know. Different from the revenue which we know exactly how many were received each month.

How come we can manage the expenses if we don’t even know the amount?

Therefore, first, we must know in detail how much is our own expenses each month.

It's quite easy. We must record all expenses, without exception, in one month. Do it for 3 to 6 months, so our stable patterns can be obtained.

From the record of the monthly expenses, we could get some valuable information.

First, we know how much we spend for a month and, more importantly, know if that expenses is smaller, equal or greater than our revenue. If the expenses near to the revenues, then we cannot invest. How large the salary is, if everything ran out on spending, nothing will be left for investment.

Second, know which activities or the most extravagant life style, and more importantly, which is wasteful and not important. The goal, so that when we want to save money, we already know which is the most significant post to be reduced.

Third, we so know also that seemingly minor expenses, for example, getting some coffee at the cafe, a taxi ride, snacks, turns out to be a big number on a monthly basis. Meanwhile, because this spending looks small, we often do not care and not counting them.

Do you realize? Just calculate how many are your expenses to get some coffee, a snack, and dinner outside for a month. You will be surprised with the result.

Fourth, the most valuable lesson is all about understanding the lifestyle. Expenses is a reflection of our lifestyle. How we spend our money reflect a lifestyle that we want to preserve. If we want to change the pattern, means we have to change lifestyle.

After knowing in more detail about our expenses, managing it will be easier. Everything is there already. It is our considerations respectively, which we want to reduce and what, if we felt like we would like to increase our investment.

Writing down our spending is just an early step. The following step that is more difficult is when we have to change our lifestyles in order to reduce expenses. Lifestyle often touch our prestige and, deeper, self-esteem, thus are not easily changed.

My advice is simple, when you have trouble changing your lifestyle, remember that is useless even if you have a huge revenue but your expenditures could not be controlled, which later resulted in nothing left for investment.