Jun 22, 2016 10:07 UTC

In this episode we focus on handling the economy of households. We hope you enjoy the program.

When we talk about the economy of households, we should know that we are not focusing on the economy of rich families, but we rather focus on managing the economy of average and low-income families since creating a balance between the income and expenditure is of high significance. Experts opine that families should pursue economic strategies and follow those strategies very seriously. These strategies should be based on the amount of income and expenditure. As it is the parents who are usually responsible for creating a calm and peaceful atmosphere, they are also the ones who are responsible for managing the economic aspects of households. 

Family budget can be allocated to a range of issues from providing house, to buying goods and even spending leisure time. Spending money on children's health and education are among the issues that have to be taken into consideration. Actually the first step for taking control of your finances is to determine a budget. It will take a little effort, but it’s a great way to get a quick snapshot of your income and expenses. If you’re spending more than your income, you need to work more. You could also keep a payment diary and keep a note of everything you buy in a month. Or, if you do most of your payment with a bank card, have a look at last month’s bank statement and work out where your money is going. The hard part of a budget is that your expenses may change from month to month. The great part of a budget is that you'll have kept track of those changes, giving you an accurate idea of where your money has gone during the year.

Don't forget to save your money. Saving is all about frittering away expendable income. Having expendable income means having no debt. And having no debt means being prepared for emergencies. Therefore, a rainy-day fund can really help you out when it comes to saving money.

And last but not the least is that the person who is supposed to manage financial affairs should have peace of mind to know how to pay livelihood expenses, keep debts to a manageable level, save for the extras that make life enjoyable and avoid constant money anxiety.