How to Manage Family Finance

Have you ever wondered about how our mothers used to manage their finances? To pay for school, to meet the needs of snacks, to our (little) luxury needs? Even though only the father worked at that time. How do you manage the financial style of our mothers to stay afloat, and of course, without debt?
Mother, maybe not a financial planner, but their life and experience and value, has made them have the right way to manage finances. What is that? Here is some advice I’ve heard.


You are the “Best Hero” for your own finances

Honestly, there will never even be a celebrity knocking on your door to deliver a bundle of money to help with your day-to-day finances. So, have the knowledge and use that knowledge to finance your life.
It is very important to be financially independent so that no one can hinder your ability to make money and then live as you wish.

Create a budget for all your needs

Of course, enter it into your snack and coffee budget. Sounds very difficult and not an interesting idea, but that’s what you have to do. You can also try this idea. Calculate how much you usually snack, put it in a separate envelope, and only snack with the money.
So, try collecting bills last month, receipt of groceries from the store, pick up a sheet of paper and several envelopes and start counting. Remember, there will never come a handsome celebrity or prince with his limousine to save you financially, if you don’t do the right way to manage your finances, then you can always be short of money.
Distinguish between “I want” and “I need”
Among the interesting offers of massive discounts Berrybenka or Nordstrom, cash back in the cafes where we hang out, there are other more important basic needs such as nutritious food, comfortable homes, and quality education for us or our children later. So, be wise.

Save now and spend later

I still remember how my mother was patient, collected and sought additional rupiah for the rupiah to buy kitchen utensils that needed to be replaced because they had started to decay. Although there are ways to buy with credit, you prefer to save until you can afford to buy the items you want.
The feeling of satisfaction reflected on his face when the item arrived home without him needing to think about the bill, that is what I often remember. Save and tax later. It’s not just about how we live, but also about self-esteem and satisfaction, whether we have little or a lot of money.

Think carefully before making a big financial decision

If you are planning something big, whether it’s financial or not, make a diagram of the causes and consequences that may occur from those decisions.
No matter how small the decision is, such as replacing your two-wheeled vehicle or as big as a decision such as opening a new business, think about it, write on a piece of paper the consequences that you will face, then consider carefully. This will help you to recognize emotions such as hope or fear of the decision you take.

Save more than you can spend

In the past, when I got a large amount of extra money, my mother would ask me to save 75% of my savings in the bank and 25% for my wishes outside my daily snack.
Set aside first
Before dividing money for daily needs, set aside some for social needs or charity. Then savings and then our needs. My mother once said that this is our way to “save help” when we need it.

Own your own money

My mother married in the 70s. So, at that time my father left the house and became the only source of our finances. I see more and more fathers to make financial decisions concerning him. Different from mother; as far as I remember, never before did a mother buy a valuable item as she wanted.
Unlike the case when the mother begins to open the stitches at home, that’s when the mother is better able to buy what she wants. From here I learned, that making and owning money is better. In addition, of course, the money generated can be a reserve for family finances.