Entering the world of the household often requires a lot of adjustments for each person who does it. After so many years of being single, you will suddenly be treated to a different atmosphere where this situation requires changes in many, even almost all aspects, including financial matters.
The financial problems faced by young families are not only a matter of increasing needs and demanding larger amounts of money, but also other things such as the way they are managed due to changing financial patterns as well. Not infrequently also a number of families experience financial problems, especially for those who are newly married.
It’s actually understandable because it takes a lot of adjustments to a new lifestyle. And sometimes, it could be that the financial problems faced by the family are not purely caused by the amount of money needed in their household life, but it could also be due to their financial management which is still found to be lacking. Therefore, here are some tips for you to prevent something like that from happening.
Not Adjusting Financial Management with a Spouse
Things that can become financial problems in young families can start from the unpreparedness of one or both parties, both husband and wife, to manage finances together. Spending habits during singles are carried over to marriage and are not communicated with partners, resulting in miscommunication in consolidating financial arrangements.
The existence of personal consumptive desires is the reason why many couples are reluctant to be transparent in disclosing their actual income, which often causes many family needs to be difficult to fulfill.
Make Details and Arrange Based on Priority Scale
Still related to the first problem. Preparation of expenditure plans and proportional allocation of needs is very necessary when managing joint finances. This is important because the circulation of money or cash flow in the household is indeed more complex and needs to be predicted from the start so that in its journey it does not disrupt family life when there are needs that are missed outside the records.
For this reason, you should plan expenses in great detail and arrange them on a priority scale. The first thing needed is to calculate how much income. Then after that, then all the components of need are mentioned one by one along with the amount of funds needed for each of these components. Make sure all potential needs that arise, down to the smallest things, are recorded properly.
Incorrect spending of income can also occur in newly married couples. The need for leisure or recreational functions can be fulfilled before basic needs.
Therefore, a detailed calculation of the basic needs needed each month and followed by components of other needs that do not need to be met immediately needs to be adjusted to the conditions of family income. Make sure the priority needs post is not disturbed first. The new one below can be rearranged or compromised if the income is limited.
Rely On Loans For Basic Needs
If the accumulated problems from the previous points are not handled properly, they can become another problem. When some of the components of basic needs are not met due to poor money management, it is possible that the new couple who is entering a married environment will experience a financial shortage. Then, will look for sources of funds from outside to cover it.
This source of funds, which is relatively easy to obtain, is to seek credit through various loan instruments. Or a shortcut, by taking funds via credit card.
Using borrowed funds for basic needs like this has the potential to cause bigger financial problems in the future. What’s more if you use a credit card where in the following months the family’s finances will be burdened with bills that are larger than their original needs.
The loan should be directed to non-primary needs where the goal is to increase household cash flow. For example, 0% installments or with low interest to buy household and school electronic needs, such as laptops. You need to remember, don’t get into debt for daily necessities.
Not Preparing a Long Term Financial Plan
Although it sounds cliche, the importance of saving is preparing a financial plan for the future which is important enough for young couples to do as soon as possible.