1. Sometimes, a double-income family with well-paying jobs
faces the piquant situation of always running out of money at the end of the
month and left wondering how the money got spent.
2. It is, therefore, necessary to devise ways to manage the
family’s routine transactions in a better and firmer manner.
3. The simplest thing is to ensure that all or most family household
expenses are routed exclusively through a single bank account, for beginning a
better hold on finances.
4. In fact, a debit card can also be linked to it for all
such transactions, while limiting cash withdrawals, but ensuring that they are
always made from this account so that they can be accounted for.
5. Both spouses can allocate a specific sum of money for household
expenses to this account, and accumulate money for future goals in another bank
account, by mutually deciding the proportion of contribution to both these
accounts, and then ensure that both accounts are not mixed to prevent excessive
spending from eating into savings.
6. While this process will take some discipline, it is
beneficial as the bank statement will always be able to show at one place how
the money was spent, and help in analyzing major heads of expenses, avoidable
spends, unexpected expenses, and impulsive purchases.
7. Over time, the first and most important financial
planning input – ability to save - will start getting reflected in the second
bank account, from which well-diversified mutual fund SIPs and other joint investments can be initiated,
which will eventually reflect family’s finances and assets.
8. Both should also use internet technology for banking and
investment for viewing, modifying, allocating, spending, investing and managing
family money efficiently.