How to Increase Financial Accountability at Home
Accounting for household spending is a tall order, requiring consumers to address a wide variety of financial demands. Fortunately for personal money managers, as financial concerns have grown increasingly complex, technology has also stepped-up with budgeting apps and online resources, offering up to date information about personal finance.
Whether you have specific questions about family finances or just want to increase your general understanding, these valuable web applications and online references help with everything from comparing financial products, to constructing meaningful household budgets. If you are serious about tightening-up household spending and building-in greater accountability, there are more tools at your disposal than ever before, reinforcing your commitment to financial stability.
Three Key Features of Effective Money Management
Everyone carries their own financial responsibilities, doing their best to reconcile cash flow and spending demands. But while the particulars may be unique in each case, some of the same underlying principles are shared by many successful money managers. For the best results ironing out inconsistencies and establishing a stable financial flow, start with these three bedrock features of effective personal finance:
1. A “Whatever it Takes” Attitude
If there is one thing every financial manager can count on, it is unexpected challenges. Whether it is a single event calling for cash or a long-range spending demand, requiring a lasting solution; financial obstacles are the norm, rather than the exception.
Facing the unknown, even as you manage day to day financial affairs, requires a flexible yet proactive mindset, always striving to make the most of the financial resources available to you. And as much as you’d like to put your financial affairs on “auto-pilot” ongoing success and stability depends upon your ability to stay focused on your finances.
Irrespective of the root cause of financial challenges, your response can make or break your financial fortunes. In practice, you will not always choose correctly, but the adage “try and try again” underscores a healthy financial attitude. For the best results meeting short and long-term financial goals, learn from your mistakes and think outside the box for creative financial solutions.
2. Spending Resolve
At the end of the day, effective money management comes down to the bottom line. Do you earn more than you spend? Do you have money reserved for savings and investments? Are you making progress toward personal financial milestones? These are the types of important, big picture concerns that should be driving you financial decision-making – and controlled spending is at the heart of a healthy bottom line. For greater financial accountability, use these strategies to restraint household spending:
· Limit the use of credit cards
· Stall purchases until you’ve had time to evaluate need and affordability
· Establish budget limits in each household spending category
· Measure your success and make needed spending adjustments
3. Financial Understanding
Money matters can be intimidating for those with limited personal finance experience and exposure. With so much at stake, however, your personal financial security relies on your savvy handling monetary affairs. In some cases the process is second nature, extending as a part-time job, aimed at growing family resources. In fact, there are many highly proficient personal finance hobbyists working on financial affairs, deeply invested in the principles of effective cash management. But for others, managing money is a daily struggle. If your knowledge base is suspect, it may be time to freshen-up on financial fundamentals.
An advanced accounting degree isn’t necessary to effectively administer family finances, but learning the basics pays lifelong financial dividends. For the best results, boost your knowledge and literacy, using technology and online resources to expand your financial horizons. Reinforced with spending discipline and a positive, forward-thinking attitude, knowledge and understanding can help you build accountability and stabilize your financial future.
You’re so right about learning the basics and applying it to your life. I can’t believe that money management isn’t more actively taught in hs. One thing I’ve always tried to do is pay cash for everything. When people tell me they have to borrow money for something…. it baffles me. To me you don’t have the money you don’t need the thing. Emergencies aside of course. Great post.
Thank you. I agree that money management should be taught more in high school. As you said with credit cards people don’t realize how much they are spending and without being taught how to properly track income and expenses, people take on unnecessary debt.