Family Finance 101 - Basic Tips

1. Use things sparingly, carefully and thankfully.
The things that we have and buy are blessings and should be used up wisely. Kids and dads should be trained to take care of their stuff well so they will last. “simot” mentality is a good habit: Go through your pantry and use up what you can until your next scheduled grocery day. No emergency trips to the grocery to buy one missing ingredient because chances are you will buy more than just one ingredient. Also, don’t over delegate to the maids, who may not be conscious of saving.

2. Think long term.
How much will a latte a day for a year cost you? It may be money better spent on tuition. Shopper should avoid careless spending. Even buying a toy to shush up a wailing child may have long-term consequences in terms of finances.

3. Make smart plans.
* Save 50 percent on transportation or gas weekly by being on time and planning trips wisely.
* Watch where you buy.
* A weekly meal plan can reduce food wastage to zero and cut your food expense by 40 percent.
* Convenience and quick fixes are very expensive.

4. Be a wise consumer.
Don’t go to the grocery when you’re hungry. Killing electric vampires can eliminate at least 25 percent of your electric bill. If you’re a spend-a-holic, avoid going to the mall with cash and credit card.

5. Know your numbers.
A spending plan is the foundation of financial wellness. Create and use one that works for you. Try to skim off the top—to take out from the paycheck once received—your savings before you spend on anything. Anticipate balloon expenses (such as tuition fees) by saving up for them.

6. Enjoy yourself.
Good money management is important but it should never go before family and relationship. Can money buy happiness? The answer is yes, “but only when we learn to let go of it. It’s not what we have that matters. It’s what we can give.”