Managing Finances For New Families, Starting The Year With The Right Planning

Illustration of financial management (Freepic)

JAKARTA - For new families, managing finances effectively is an important step towards achieving financial stability and realizing a common goal of living together. With good management, you can prepare for the future, overcome urgent needs, and still enjoy the desired quality of life.

The momentum of the new year is an ideal time to reflect on financial habits and establish realistic and sustainable financial resolutions.

Citing the ANTARA page, here are tips for managing finances for new families:

The first step to achieve healthy finance is to design specific, measurable, accessible, relevant, and time-limited targets (SMART). Start from short-term goals, such as saving for holidays, to long-term targets, such as buying a house or preparing children's education funds.

It is important to prioritize goals based on needs and capabilities. By setting clear targets, families can have a better focus on managing income and expenses.

In order to make financial management more targeted, expand the budget by calculating monthly income and expenses. Use the 50/30/20 method, where 50% of income is allocated for basic needs, 30% for wishes, and 20% for savings or investment.

Make sure you also have emergency funds for at least three to six months of expenses. These funds are useful for dealing with unexpected situations, such as job loss or other emergency conditions.

If you have a debt, take time to record all debts, including the amount of interest and due date. Prioritize the repayment of the debt with the highest interest rates to reduce the overall interest expense.

Paying more than the minimum amount can also accelerate debt repayment and reduce total interest costs. Don't forget to evaluate debt regularly so that it remains under control.

Discipline is the main key in carrying out financial plans. Routinely recording every expenditure, both large and small, will help you understand your spending patterns and find areas that can be saved.

Reduce non-essential expenses by making a priority list of spending. Focus on primary needs first, then allocate the remaining budget for secondary or tertiary needs.

Financial applications can be an effective tool for monitoring expenses and tracking the progress of achieving your targets. With this technology, you can see a comprehensive picture of family financial conditions and make better decisions.

Conduct a monthly evaluation of your budget and financial achievements. This helps ensure financial plans remain on track and provides an opportunity to adapt the strategy if needed.

By implementing these steps, new families can start in 2025 with healthier and more planned financial management, as well as build a strong foundation for the future.