Manage your expenses and debts better with these helpful insights.
In the first quarter of 2021, the food inflation rate in the Philippines soared to 6.6 percent. Now, more than ever, running a household on a double income is necessary if you want to be able to also save up. When you make financial decisions today, make sure they all work towards achieving your family's financial goals.
Below, we give you 5 expert tips on how to keep your household finances in check.
Live on one partner's paycheck
Running a two-income household gives you the flexibility of financial choices. For instance, you can choose to use only one partner's paycheck for all your family's household expenses and monthly bills. That way, the entire salary of the other partner can go directly to savings or investments.
Additionally, by relying on only one income for all expenses, your mindset changes. You shift to a savings-oriented perspective and make spending decisions more prudently.
Finally, by adding to your savings every payday, your family can still live comfortably in the event that one partner suddenly becomes unemployed. Your savings can tide you over until you are, once again, a two-income household.
Plan meals meticulously
With the boom of food delivery apps, it's so convenient to just order your meals. However, you can save more if you cook your own food. Have a weekly meal plan and do your grocery shopping based on this. Tailor it according to what's on sale and what's in season. Look for bundle packages that offer the brands you regularly buy at a discount. Most importantly, resist the urge to splurge on unnecessary items and stick to your meal budget.
Track your expenses and plug the biggest money drain
Having a budget is imperative for you and your family to live within your means. To do this, you need to list down each expense, even if they're seemingly negligible as a parking fee. You'd be surprised at how all these little expenses add up at the end of the month.
As you review your monthly expenses, you'll start to see a spending pattern. Determine which unnecessary habits are costing you the most. Is it your game apps? Online subscriptions? Impulsive online shopping? Identify a definitive way to plug the money leak. Spend mindfully.
Have a common financial goal
Everyone in the household, especially those who earn, must work towards a shared financial goal. Whether it be saving to buy a house or establishing a trust fund for the children, a common goal helps shape your spending priorities, and influences your level of commitment to these goals.
If you are paying off high-interest debts, how about taking out a Personal Loan to fund your payments? Consolidate your debts and use a personal loan to pay it off. This strategy gives you only one monthly payment-the personal loan-to worry about. Also, you'll be saving a significant amount when you pay off just the personal loan, with one fixed interest charge.
Additionally, a personal loan has a definite end date. You won't have to keep paying various debts with different interest rates for an indefinite period. Instead, you can finish repaying your debt sooner, without having to contend with fluctuating interest rates.
Citi Personal Loan offers flexible payment terms of up to 5 years. And you can get approval in as fast as 24 hours.
Anytime is a good time to start improving your household finances. With a solid goal and careful planning, you'll be on the path to financial wellness in no time!
If you need some expert guidance, check out LIT to learn more about handling your finances. Good luck!