How To Run a Household Like A Business And Maintain a Budget

When you assume the responsibility of running a household, you also must take an accounting of the costs it takes to make a house a home. In effect, how to run a household can be likened to running a business if you want your home life to be successful.

That is why budgeting is so important in maintaining your home for you and your family. For example, just like a business, you should take an inventory of all those items you have on hand in your home for insurance and financial purposes.

THE IMPORTANCE OF DOCUMENTS AND RECORD KEEPING
Just like a business too, you should also keep an inventory and take an accounting of the important information for your home. General documentation can include passports, birth certificates, marriage certificate, wills, social security cards, school records, and employment information.

Budget-related documents should be comprised of:

Banking account numbers and statements
Credit card data
Retirement account information
Insurance policies
Tax data
Deeds and mortgage information
Records for home upgrades
Warranties for appliances

FILING AND STORAGE OF HOUSEHOLD RECORDS
Of course, once you have all this information, just like a business, you will need to find a way to manage and store it so it is easily accessible. That is where the computer comes in handy. You can file some of the aforementioned data on your computer.

For hard copy materials, such as passports or insurance policies, it is best to reserve a safe deposit box at the bank. You should maintain I.D.s for all members of your immediate family, such as driver’s license, social security cards, birth certificates, and insurance cards. 

Also, make sure you have at least a couple of checks with the account number on them even if you use your debit card frequently. You should make sure the key for your safe deposit box is located in a spot where you can easily access it.

It’s really best that you maintain all your important information in just one area of the house for easy retrieval. Whether you digitize the information on your computer or maintain it in a filing cabinet, all the above information is necessary for an organized and well-run household.

ORGANIZATION IS KEY TO RUNNING A HOUSEHOLD
As you can see, keeping an inventory and managing the records for your home will make it a lot easier to budget and enjoy a better home life as well. It also gives you the incentive to financially plan for the future so you can create goals for yourself and your family.

As in business, everyone in the family is a “team member” who contributes to making everything run smoothly. Therefore, when you know what you have on hand and establish a personal budget, it makes it easier for you to plan activities for the family and maintain everyday routines.

Read the full article at: https://moneyqanda.com/running-household-business-maintaining-personal-budget/ 

August 27 2018 By Hank Coleman - Moneyqanda Financial Planning