Summary: to make your financial state more clear, you should make a balance sheet and through which, you get an idea on how to improve your financial state.
Have you ever heard about the financial management of Jew? They insist that they should make 1/3 of their incomes for family running expenses, another 1/3 for saving, and the rest for investment. Making a family balance sheet helps you to see clearer of your financial state and remind you to make it a balance.
1. More than a sheet
You may already have a balance sheet and write all of your incomes and out comes there. However, you still overspend every month unconsciously. Exactly, it's a good habit to use balance sheet. But, if you only simply write numbers on it while never take it as a financial reminder of you, then the existence of the balance sheet is meaningless. Take a look at your balance sheet last month, and count how much you spend in food, cloth, petrol, children's education and etc individually. Check every detail of your spending and ask yourself: whether should I spend money on this? If you got a yes-saying, go to the next item; if not, make an emphasis note on the item and remind yourself not to do the same thing in the next month.
2. What if you overspend on food?
It's a coincidence that you and your lover are both gastronomists who in fond of search for good restaurants and enjoy dinner there. This may be the one excuse to justify that why you spend that large amount of money in having dinner out. The other excuse may be "I have no time". However, no matter for which excuse, the fact is you are too lazy. Like the taste of food in restaurant? Then why not buy a cook book or DVD, and learn how to do it yourself. You are too busy to cook at home? The truth is if you know how to cook and arrange your time, you’ll find that cook at home saves your time as well as money.
3. What if you overspend on clothing?
Girls all like beautiful cloth and accessories. However, if you find you spend much on your clothes, be careful as that may means more than overspending. If you already have many clothes and find that there is no one suitable for you, it means that you have no idea about how to select cloth and match them with each other.
Mrs. Obama no doubt sets a good example in this field. She seldom wears clothes of giant brand and she knows well in matching up clothes with accessories.
4. Say no to frequent costly entertainment
Reasonable entertainment is good for you to relax yourself and bring harmonious environment to your family. But, control the frequency of such entertainment and sometimes you may get addiction, like going to casino. The best solution is looking for entertainments for free, for example, have a picnic, or play basketball in public basketball field. Skating is also a excellent idea. Despite of saving money, it does good to your health and body fit.
5. Be cautious in investing
If you know nothing on investing, it's recommend that you should take away with stock market. Try some conservative investment, like national debt or fund.
