One For The Money: 10 Helpful Ways To Manage Family Income

These days, it is usual to hear the words "poorita" and "pulubi" as a way to acknowledge financial distress. It is so surprising that many people embrace it as a fun way to accept defeat in terms of financial security and preparedness. It is part of the limiting belief that it is hard to be wealthy and truly happy nowadays.

As I grow older, I always hear other people telling their kids to just dream little things because of poverty. It really scares me to the extent that I try to dream bigger than I can imagine. Honestly, I'm more than afraid of my inability to control my spending habit compared to any other scary things in the world. It is sad to be broke and penniless. The future is bleak and everything is gloomy. Simply put, poverty is a bondage.

So what is the specific thing that you should prioritize in order to be free from financial challenges?

It's financial literacy that helped me achieve peace of mind. It's the same thing that will help you and your family to live a happy and meaningful life.

Do you still remember when you have to borrow money a week before payday? Isn't it a concrete example of being financially unstable? There is a way to eradicate such kind of life that forces you to forget being truly happy because you are strapped with serious money problems.
Since you are gainfully employed, you'll expect to receive money as a compensation of your hard work, and you are certainly aware that you are going to spend what you have received. One of the forceful secrets to keep yourself wealthy is to avoid spending that which you don't have.
Aside from the said wise counsel of financial experts, let us talk about the 10 helpful ways to manage financial income. You'll be in for a treat today!

Are you ready?

Let's begin.

1. It is important to learn how to manage money before it manages you. 

It is obviously scary for money to take over our ability to decide for ourselves. For instance, you have decided to borrow money so that you can travel to a popular city next week. By the time that you receive your salary, you need to pay a lot of bills and the debt that you incurred to cover your travel expenses. Then, someone offered you a discounted pair of shoes that you have been dreaming to own. Because of the debt that you need to pay, you're unable to buy the shoes. As a result, your buying power is lessened. You could have saved money for your travel expenses than to borrow cash to make it happen.
Always remember that financial peace of mind is not determined by how much we earn, but it is dependent upon how much we spend. - Elder Marvin J. Ashton
Husband and wife should help each other to manage family finances. It is a partnership that shouldn't be taken for granted. The attitude should be openness and trust so that contentions can be avoided. No one should allow financial instability as a reason for families to break apart. The mutual responsibility of parents to support the family should be upheld at all times.

Based on the example given above, it is easier for parents to be careful in spending money. As such, it is highly recommended to have a reliable financial plan before doing anything that can affect the family income.

2. You have to prepare and implement a budget for your monthly expenses.

The main goal of a personal and family budget is to know the available money each month and the amount to be spent to acquire all needs. You should avoid debt and the resulting finance charges. The exceptions of this tip are home buying, paying for education and making other important investments. For vacation and shopping purposes, pay with cash. Personally, I have accounts for shopping, travel and other lifestyle related necessities. In each envelope, I save P300.00 every month and deposit it to my savings account every quarter. I try to build the fund to pay for purchasing my favorite clothing pieces, to buy plane tickets ahead of my planned trips, and to support my blogging needs.

Always remember that credit cards are for convenience and identification so don't use it carelessly. Purchase used items until you have saved enough money to buy quality new products. Aside from that, you should also remember that buying poor-quality items almost always ends up being very expensive.

There are many motivational speakers and mentors who encourage each one of us to save and invest a specific amount of money every month. As such, liquid savings available for emergencies such us sickness or unemployment should be enough to cover at least three months of all important family needs.

Here is a sample budget sheet for you. 

A budget helps you plan and evaluate your expenses. You need to have a budget for specified period such as weekly, bi-weekly and monthly based on your pay schedule. You'll need to balance income with expenses and spend less than you earn.

If you believe that giving keeps the flow of wealth to your advantage, you can follow the items listed in the expenditures column by heart. Don't forget to prioritize savings and investments so that you'll no longer have to worry in case unexpected circumstances occur. In addition, don't forget to pay your insurance premium regularly.

3. Involve yourself in an insurance program for protection.

There are many kinds of insurance products and it is important to appropriately involve yourself in each one. Aside from having a life insurance program, you should have a sufficient insurance for medical, automobile, and homeowner's insurance. It is proven so many times that expenses relating to illness, accident and even death may be so huge that a lot of people have become financially constrained because of it. If you have kids, it is highly recommended to include them in insurance programs while they're young and the payment is lesser.

4.  Be sure to participate in food storage and emergency preparedness program.

There is a system to make sure that you have enough food supply at home. If you have extra cash, you can store food in your pantry such as canned goods, biscuits, candies, water, chocolate drinks and more. These items will last longer so you will have something to eat and drink if there is calamity. It is also one way to avoid panic buying.

If there is no calamity and you still have the aforementioned items in your pantry after three months, you can systematically consume the food and drink products and start accumulating new items to replace it. The cycle goes on and on. In that way, there will be no food shortage in your home.
If you have family storage, don't forget to prepare a 72-hour kit for each of the family member. It is a backpack full of food and drinks that will support your needs during a calamity within three days. Usually, relief goods and help from others arrive only in the third day if there is natural calamity such as flood or earthquake. In your kit, include fresh clothes, fresh batteries for flashlights, a power bank, and important documents in order to have an orderly living even during trying times.
Always remember that you shouldn't incur debts just to have a food storage. If you have limited space at home, learn some techniques on how to maintain a vegetable garden and start planting vegetables so that you will have something to harvest in the future. It is helpful to the family in many ways, especially in the food budget.

5. Learn self-discipline and self-restraint when it comes to money matters.

Discipline is a very important element to achieve financial freedom. The bondage of debt, worry and ignorance can be eliminated through your ability to curb spending impulses. For both husband and wife, money management skills should be developed together in a spirit of never-ending love and partnership.

6. Teach family members early the necessity of working and earning money.

The old school way of rearing children is teaching them correct principles and let them govern themselves. For example, a young child must be taught the concept of working and receiving compensation after work. It is also proper to teach trading techniques or business as a basic way to earn money. As a parent, you can assign simple household chores to your child regularly and show him or her the perks and privileges of hard work by giving compensation every month for doing the task and having planned leisure activities such as visiting an amusement park. It is good for you and the child to do it.

7. Always make education a continuing process in your life.

The nature of education is a continuing process because things change from time to time. If you're capable of completing a formal education, a bachelor's degree or education as possible, make it a priority. After that, take informal training classes and apprentice programs related to your chosen career.

In case you have talents or skills that are not related to your educational background such as painting, singing, dancing or writing, you can also attend classes that are created to develop it. Take advantage of the short courses offered by the government to enhance your knowledge and skills in a given trade or profession.

Having a continuous education is a form of investment because you can use the additional knowledge that you acquired in case of sudden unemployment and when opportunity knocks your door. It is very valuable to you and your family.

8. It is essential to a encourage family member to contribute to the total family welfare.

The specific goals of the family can be achieved by helping each other. For example, each one can contribute if there is a project such as allowing a child to attend dance classes and the family income is not sufficient to pay for it. This is possible if the whole family have a regular meeting at home. Each one should be aware of the family goals, financial status and their individual responsibility within the family.

9. Take advantage of the opportunities to earn money online.

There are legitimate work-from-home jobs that can help you increase your income. Just read the articles written by experts about online jobs in order to have a guide in doing so. If you have free time, you can participate in training classes to be able to work for international clients as a virtual assistant. For those who preferred to sign up a program to offer insurance products, you can use the Internet to inspire other people to have lifetime protection by involving themselves in an insurance program.

10. Teach children to make money decisions based on their capacity  to understand.

The concept of accumulating money for positive reasons should be taught while a child is still young. In order to inculcate the value of hard work and teach the essence of implementing a personal and family budget, it is advisable to be very specific. For example, you should say "save your money" for buying birthday presents and other items than just telling them "to save money" without specific explanation.

If a child matures, he or she will understand that having personal savings and investments is a noble act. Based on experience, my relatives hate each other because of inheritance. Obviously, there is lack of financial education within the family. If you don't want to experience the same thing, teach a young child to care for a parent or a relative whether or not they can get money or anything in return. Your children will not think in that way if they're already aware that building wealth is an individual responsibility and with the careful and loving supervision of their parents.

It also proper to teach a family member about the influence of unavoidable events on the financial status of the family. These factors involve unexpected employment, inflation, accident, disability and natural calamity.
It is true that unavoidable circumstances will periodically prevent us to reach our chosen destination, even in financial matters, but the positive effects of financial literacy can pave the way for us to go back on course and be truly happy.
In addition, it is also exciting to prepare for retirement as early as possible. It is truly inspiring to see many people who already retired before reaching 40 years old. They're able to invest money to prepare for that. They've wisely applied what they learned from others pertaining to financial literacy. To incorporate your goal to retire early as a working professional, you can find a mentor or a person who can guide you to achieve it. After all, copying the techniques of a person who is already successful is a wise move.

As proper money management is important in today's world if we are to live happily, I had shared the aforementioned recommendations for improve personal and family financial management. 

If you are able to follow all the said points that I shared in this post to manage family income, the real meaning of the words "poorita" and "pulubi" will become a thing of the past and just a way to incorporate fun in the way you communicate with other people. It is also possible to make each family member contribute to family wealth by being resourceful, self-reliant and industrious. Indeed, a family that saves together stays together.