preview

Categorise Your Savings Into Emergency Funds Essay

Decent Essays
Marriages break down over finances, banks harass you regarding them, and the stress can kill you. Feel like it's the time to take the reins in your hands? The good news is that you can. Just combine a little bit of common sense with a pinch of planning, and you have the fastest grip on your 'dough'. Below are the top ten ways to take good care of your finances:

1. Start with a plan. First of all, jot down all the facts of your fiscal life - how much money is coming in, how much are you spending, how much are you saving, how much do you owe somebody etc. This will require you to bring out all the bank statements, utility bills, credit receipts etc. Then divide the list into how much you want to put under each heading. Be realistic while doing
…show more content…
Involve the family and your better half in planning your budget and savings. Listen to what everybody needs. Listen to their suggestions and involve them in filing receipts etc. so that they know how much you all are spending versus how much you have to. This will make them more comfortable with any changes you might propose.

3. Categorise your savings into emergency funds, your children's college funds, retirement savings and leisure fund. This way you will have a cushion whenever the need arises. For example, your children will not have to miss college if they do not get scholarships or they do not inherit an estate from that old great great grand aunt. Emergency funds should at least be three months worth of expenditure.

4. Record your savings. Keep records of what you are spending money on. Is there a way to cut down on this spending?

5. Cut down on your credit card use, because once you are hooked on buying things using credit you would always be paying off high-interest debt. You do not have to totally stop, but realise what you can pay back in a logical timeframe.

6. Expensive gifts are always the biggest financial shock. Cut down on the price and improve the experience. Be creative and give gifts that are more than hefty price
    Get Access