Chapter 16 Wisdom from Wife - Wisdom from Wife

In books and in the theatre, there is a kind of money-indifferent optimism that gives us a lot of jokes.When David Copperfield asks his young bride Donna to plan her expenses, Donna pouts and acts like a lovely character.We also love the immortal book "Living with Dad" about how Mom messes up the monthly family budget and fights over it, but, on Mother's Day, Dad showed Best poise.In addition, the wasteful Mr. Macbeth has also become one of the most beloved characters in the history of literature under Dickens's pen. It is true that the irresponsible characters who are attractive in fiction are often also charming.But, in real life, people who can't plan their income properly can't make people laugh.He was a failed adventurer; she was extravagant, befuddled, a heavy burden round her husband's neck, and not at all attractive.Property loss is far more depressing and annoying than anything else.

Now that prices have risen and living standards have improved, it has become more expensive for children to go to school.We have a lot less money than we could have bought ten years ago, nay, even five years ago.Wives face a disproportionate challenge to spend that money carefully. Some people may think that if we increase our income, all our troubles will be solved.But economists tell us that this common belief is wrong.Elsie Stapleton, a financial advisor for Warner Merck and Jim Bell department stores, believes that most people's income increases, which often leads to an increase in expenses.

While doing research for this book, I came across a great book on family relationships.Although the author is a psychologist of national renown, he does not seem to know how to deal with family budgets, which cannot but be said to be a special shortcoming."It's actually a very simple question of what to do with household income. It's all about spending more when you have money and spending less when you don't have money," he said. His theory is indeed simple, and there is a free and easy temperament in his words, which not only reminds people of the extravagant and charming characters in the novel.However, when we calm down and think about it carefully, we feel that something is wrong.What he did was simply not handling his income properly.Unplanned spending means that everyone may share in your income, including greengrocers, bakers, and electrical sellers.Canada's Bank of Montreal advises customers to learn to spend wisely, especially when they suddenly receive a large sum of income.

Budgeting your own income can ensure that your family can get a satisfactory share.A budget should not be a straitjacket that constrains action, nor is it a purposeless record of money spent, it is a planned blueprint to help you spend all your income in the right place and send it to a bigger purpose. use.Think of the goals you have in mind—a new home, the cost of college for your kids, your family’s pension, a long-awaited vacation.The correct budgeting method will help you realize these wishes. It will tell you to take out those unimportant inputs and put them into projects that require large expenses.

Knowing how to make the most of your limited income is also an important way to help your husband succeed.If your husband is very good at making money but doesn’t know how to save money, you should help him keep a close eye on his wallet; if he is already very economical in spending money, you can also show the same view to increase mutual confidence.If you know nothing about managing your household finances, you should learn how to budget your expenses right away. Do you want to become an expert on home finance? A good source of home finance knowledge are lifestyle magazines.It will tell you how to use old clothes; how to make cheap snacks; how to make furniture and so on.Another piece of good news: Your local bank has a free budget counseling service that will tell you about special budget plans based on your family's needs.In order for a budget plan to be worthwhile, it must be tailored just for you and not for other families.Because your financial problems are as unique as your body and face.Other families won't be in exactly the same situation as yours.

Here are some suggestions to help you plan your family budget.First of all, it is very useful to record every expenditure and have a clear understanding of the expenditure situation.Because we have to know what's wrong, otherwise there's no way to improve.Savings mean nothing if we don't know where to cut spending and why.Therefore, all household expenses must be recorded for a certain period - at least three months. When it comes to keeping books, Arnold Bennett, John D. Rockefeller, and I are impeccable experts.Although my method of payment is checks, I still make a monthly list of my expenses, and I add up the expenses on the list every year.If you ask how much our living expenses, water and electricity expenses, gas expenses, communication expenses, and entertainment expenses are in a certain year, I can tell you exactly.Not only that, but through these records, I was able to find out where the increased expenses were spent.When you know where your income goes, you don't have to keep the books.But I love having this kind of data on hand, if I suspect I'm overspending on something, like buying clothes, I just need to check the records to know the truth.

When a couple started keeping accounts, they were surprised to find that they spent about seventy dollars a month on booze.But I know them, they are not a couple of alcoholics, but they are too enthusiastic about their friends and often invite them to have a drink at home.Soon they made a decision that they would no longer open a free bar and use the seventy yuan in better places.This decision is undoubtedly wise. The first thing to do is to list the fixed expenses of the family for a year, including rent, living expenses, utilities and insurance.Then list other necessary expenses, including equipment expenses, transportation expenses, medical expenses, education expenses, gift money, etc.Budgeting has to be realistically tailored to the particular needs of the family, and sometimes it takes a lot of self-discipline to come up with the plans that are needed, which I think everyone understands is not easy because we can't buy everything.However, we at least know what things are necessary, and then give up those unimportant things.Are you willing to have a comfortable home and give up expensive clothes? Are you willing to make your own clothes and use the money saved to buy a TV?Obviously, these are decisions that need to be made by you and your family.

Save 10% of your income every year The advice given to us by financial experts is that even though prices continue to rise, if you can save a tenth of your income, you can achieve financial comfort in a few years.So make it a rule to save yourself a tenth of your fixed expenses, or invest it, and figure out how to build up an extra fund to buy a house or a car. One woman I know whose husband is a conservative and obstinate Englishman would not give up the plan to save a tenth of his salary even if he was so poor that he would strip naked in Grand Central Station Square.The wife said to me: "During the economic downturn, my husband's income suddenly dropped, and the whole family also suffered. I always try to save every dime when I buy daily necessities. In order to save the bus fare, my husband , I have to walk more than twenty streets every day. Even so, the plan to save one-tenth of my salary has never stopped. I admit that sometimes when we need money urgently, I regret putting it in the bank. But now I'm glad we stuck with it. Because savings allowed us to have our own house and other enjoyments when we reached middle age."

Prepare an emergency fund Many financial experts are warning young families to save at least three months' income for emergencies.However, trying to save a lot of money at once is very difficult.If you save 200 yuan at a time, and there is a gap of several months between the next time, the result is that you can’t save much money at all. Instead of intermittently, it’s better to save 50 or 100 yuan every month. . Budget needs family discussion Financial experts believe that budget planning must have the support of the whole family.Since everyone has a different attitude towards money and is often affected by education, temperament and experience, family discussions should be held frequently to eliminate differences of opinion.

Life insurance is big issue For women across the country, everything uttered by Ms. Marion Stephens Abari, Director of the Life Insurance Association, holds special authority because life insurance experts draw their opinions from her .When Ms. Abari was interviewed by me, she said that wives should ask themselves the following questions: Do you know what basic needs life insurance can provide for your family?Do you know the difference between lump sum and installment payments and the benefits of each?Did you know that there are many different payment methods?Do you know the double meaning of modern life insurance?These and many other questions are so important to your family that it's not enough for your husband to know the answers; you should know the answers too.If a man dies unexpectedly, life insurance can protect his family; if he continues to live, life insurance can provide him with an independent fund to support his life.If one day you unfortunately become a widow, the life insurance knowledge you know at this time can help you solve your problems.

Mary Nandis and Gardson tell us in How to Build a Good Marriage that the main adjustment and adaptation in married life is how to spend family income.We all know that money is not everything, but if we know how to manage our finances effectively, we can bring happiness, peace and benefits to our husbands and families.We can't imagine that our husband will bring home a large income every month, just like the man we were supposed to marry but didn't end up marrying.Such fantasies are vainly ruining youth and wasting good times.The hard work we can do is to turn ourselves into financial experts and make good use of the money he earns. This can also motivate my husband to work harder and earn more money.The specific method is the following rules: 1.Write down every expense and get a detailed understanding of how it was spent. 2.A new budget plan is devised each year. 3.Save one-tenth of your household income. 4.Prepare at least three months of income as contingency funds. 5.Budget planning requires the cooperation of the whole family. 6.Life insurance is also an important issue.