I Need Help With Money!
Prevention is always better than cure. Management is always better than solution. Thus, before we get “I need help with money!” situations, it is best that we manage our utility bills while they are in order. By definition, a utility bill is an invoice received by a household for payment of metered usage of electricity, gas, or other utilities at a residence. With the growing demand, decrease in supply, and increase in poverty, some households find it hard to cope up with the payments for these basic home utilities. Thus, there are struggling households that need help paying utility bills. There are federal agencies and non-governmental groups that extend assistance to households that are struggling to keep up with their utility bills. Grants are also extended to families below the federal poverty guidelines. Assistance is commonly offered for payment of utility bills, including heating and cooling bills. Grants are offered in either crisis programs or assistance programs, which means that a family does not need to have an unpaid bill to avail of the assistance. Though these are supportive solutions when things go uncontrollable, it is still best to manage finances before they jumble up and take over our lives.
Financial Management: Avoiding “I need help with money!” Situations
One of the most important needs in life is money. Money can buy every comfort that we need. Thus, management of financial assets is very vital to achieving a comfortable life. Surveys have tracked eighteen financial-management behaviors, ranging from very basic money management skills (tracking expenses, paying bills on time) to more sophisticated ones (diversifying investments). Household financial management should hold not only for home utilities but this should also extend to savings and checking accounts to credit cards, mortgages, home equity loans, and investments. According to surveys, the households that succumb to financial grants and aids are those that do not follow recommended financial practices due to lack of knowledge about principles of financial management and financial matters. Below are simplified steps in how to manage household finances.
RECOGNITION: First Major Step in Household Financial Management
The first and most critical step in organizing one’s financial situation is recognizing needed finances and choosing to take steps to organize them. The ability to effectively manage household finances has little to do with the ability to understand stocks, economy, inflation and deflation rates, etc. While knowledge on the economic aspects may be helpful, understanding personal needs and expenditures is the most important part. According to most economic surveys, one’s behavior and ability to control expenditures are related to one’s financial problems.
BUDGET: Second Major Step in Household Financial Management
To budget is basically to plan on expenditures against the money that is expected to come in for the household. It is simply writing down all the expenses for the month and all the money that is coming for the month to see the difference. The difference will determine how you will control the spending and how to cope up ahead if there is a negative difference. While budgeting, it is also important to know how to priorities the needs over the wants and the most needed over those that are less needed.
The Rest of the Steps in Household Financial Management
The rest of the steps are as important to the first two but not as major as the first two. Once you have the first two done, the rest will be easy to follow.
- Step 3 – Follow the Budget
- Step 5 – Keep an Emergency Fund
- Step 6 – Pay Out the Debts
- Step 7 – Stay Our of Debts
- Step 8 – Save
- Step 9 – Invest
- Step 10 – Enjoy
With household financial management, one can keep off from “I need help with money!” situations.
Post Highlights:
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