Leakage Causes of Family Finances and How to Overcome Them

05 Feb 2018 by Edwin

Setting a household budget is an easy thing for many people. But in reality, like the Indonesian proverb “large pegs rather than poles” on family finances are a common problem. Why is that?

The answer to the question above is very simple, managing the finances in the household is not as easy as it seems. There are lots of expense on items that you need to organize. And many expenditure items that must be prepared if at any time there is a problem.

Some of the possible consequences if you do not immediately manage your family’s financial expenses include:

  1. “Large pegs rather than poles”
    When you have to spend more than your income, it means there is a problem that you need to solve. For most people, solving this problem is only 2 options, reducing expenditure items, or adding revenue posts. But the problem solves only 1, your family’s financial income, and subtract fewer expense items.
  2. The absence of money when there is an urgent need
    Lots of families are distracted when there is an urgent need. Some examples are, no money when family members get sick, or no money when there is an increase in the price of goods. The consequences of this problem include the exhaustion of goods / property owned, exposed to debt, and various other problems.

But of course, the ‘leakage’ family financial problem is not just your fault. There are several other causes, among which are:

  • Unstable national economic and political climate
  • World market conditions are often tinged with issues

For that, the best way to prevent and overcome the potential family finances of leakage include:

  • Create a Monthly Spending Plan
    With the income you have, create sectors or outlets where expenditures will occur. The hardest part is predicting trivial posts like:
    – Donations / charities
    – Urgent transportation (taxi / motorcycle taxi online)
    – And Outsource if at any time you need a handymanMake sure every expense item is never more than you have planned. Even if it remains more, then make sure you reduce the expenditure from other more consumptive posts.
  • Save Money
    There are many ways for you to save. You can use Victorian savings (piggy bank), or use banking services.But now you can use fintech to save money. How? You can start searching for money-saving services products offered by various fintech which are now popular. And even more, savings are much more varied than most types of savings. You can save with insurance services, or save with investment services (such as sharia savings, or digital currency investments.)