Tips for Manage Household Budget with Needs vs Wants

Household budget has various ways to set it here I'll discuss the whole way; one way to manage their household budget needs is here with a simple and concise than before. In managing finances every day, we are often faced with conditions where the money we have is limited, but as hard to contain our spending. Ideally, the money we make must be able to meet the needs of everyday life, to meet the various desires and set aside to fund prevention and preparation for the future. In the framework of our financial management is working well, we can analogize our home as a company. Each company has a goal to make a profit. Similarly, in our Household budget management that we do have can produce excess funds to be used as future savings for various purposes.

Household expenditure, especially for those who live in big cities in general is not only large in number but also the number of post nominal. Therefore, it is important to manage spending more wisely. At least there are 3 things you can do to manage your household budget expenses, namely:

1. Distinguish between needs (needs) and desire (want) the fundamental difference between needs and wants are: (i) requirements must be met at this time also to meet the everyday life, while the desire is something that can be filled at a later time without disturbing the daily life day of our day, (ii) the need there is a limit, while the desire has no limits, (iii) not all the needs that we want, and vice verse.
2. Perform between mandatory spending priorities, needs and desires. For example, mandatory spending is mortgage debt, savings, insurance, charity. Expenditures for example is the purchase of basic food needs. While expenditures for other expenditures that desire is not included in either category above.
3. Learn how to spend money wisely for each expenditure heading. For example: do not give in to the temptation to reduce prices and then buy in large quantities. Buy as you need.

Hopefully my description of this bit about the household budget, useful for all readers. and with the simplicity of my heart thank you for your visit, see you in my next article.