Most young couples have yet to explore ways to manage funds properly. Without proper resolution, however, financial problems can cause disasters, which in turn affect household harmony.
So, what to do when these monetary problems are already plaguing our domestic life? Don't let things get worse! Improve your family's financial situation with the following five tips:
1. Synchronize your vision and open up
A synchronized Shared monetary vision goals isare the main foundation for a healthy family financial condition. Start discussing and synchronizing your views on each other's needs and desires, so your family’s financial goals can be more focused.
You also need to be open with each other in discussing financial conditions. These are sensitive matters, but things like income, expenses, and debts need to be discussed openly. This will make it easier for you and your partner to find a solution together ifwhen you face financial problems down the line.
2. Create a joint financial plan
After synchronizing your vision and committing to be open with each other, start solving fyour financial problems by making a budget with your partner. You can make periodic financial plans, including monthly and annual calculations.
For working couples, agree on the source of income that will be utilized. Separate or combine your revenueincome, as long as you can keep the budget management running as planned.
3. Periodic evaluation
Perform regular expenditure evaluations to make sure it follows your predetermined financial plan. Comb Check thoroughly each existing expenditure post. If a post exceeds its budget, immediately find a solution together to avoid further swelling in your expenses.
At this stage, you and your partner can also determine which expenses can be cut. If you do it in a disciplined and periodic manner, you can unravel the problem and become more efficient in managing family finances.
4. Start investing
Savings alone are not enough to cover relatively expensive needs such as vehicle and housinge. The interest earned from savings is not proportional to the inflation rate.
That’s why you and your partner need to learn about various investments such as deposits, mutual funds, and stocks. Once you learn about them, you can start allocating funds for investment.
5. Prepare for emergencies
Disasters or emergencies often come at unexpected times, which can disrupt the financial stability of your family. Hence you and your partner need to begin preparing ahead ofor emergencies.
Start from setting aside an emergency fund amounting to 300-400% of the usual monthly household expenditure. This way your family members have something to fall back on.
Try to take advantage of the increasingly innovative and varied insurance and investment products. Among the many products available, sharia insurance is one of the most popular. With just one product, you can get insurance protection benefits while making a profit from investments that are in accordance with sharia principles.
By following the strategiessteps above, you and your partner can improve your conditions while developing financial conditions for a better life.