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Tips for Managing Finances for Young Families

Tips for Managing Finances for Young Families

The financial condition when you have a family is certainly different when you are single. All needs must be discussed and planned as well as possible in order to create a healthy financial condition. Come on, look at 6 costs that must be prepared and how to manage finances for a young family!

6 Costs to Prepare in Family Finances

Before discussing how to manage finances, you must first map the costs of expenses with your partner. This is so that you can have an idea of the costs that must be incurred every month. The 6 costs that must be prepared include:

1. Cost of Housing

Residence is the main concern for every newly married couple. Living in a parent's house or renting a house for a while is a common option before buying a residence.

If you want to buy a residence, you must save money and raise funds according to your needs and financial capabilities. After the funds are collected, you can pay down payment and determine the tenor of the mortgage. The tenor of KPR itself is divided into two, namely short tenors (under 10 years) and long tenors (15-20 years).

2. Cost of Daily Necessities

The cost of daily necessities such as water, electricity, gas, transportation, monthly shopping, food needs, and various other life supports should also not escape financial planning. By creating a financial scheme, you can manage your finances to meet other needs.

3. Education Fund

Preparing education funds before the child is born or after marriage can be a solution. In addition, preparing an education fund can be through various means, such as savings, deposits, or investing.

4. Emergency Fund

An emergency fund is a number of funds that are used to deal with various unexpected conditions in the future. As it means, emergency funds are only used in emergency situations that cannot be overcome by normal financial schemes.

Situations that use emergency funds include home repairs after disasters (fires, floods, etc.), vehicle repairs after accidents, living costs during layoffs, and so on.

The amount of an emergency fund depends on the family situation, for example, a couple who are married but do not have children, then they must prepare an emergency fund of approximately 9 times the monthly expenses. It is different for couples who already have children, where they have to prepare an emergency fund of 12 times the amount of monthly expenses.

5. Insurance

After the various expenses above, don't forget to protect yourself and your family with insurance! There are 2 types of insurance that you can choose according to your needs, namely Koe Package and Non Koe Package. 

The Koe package consists of MobilKoe Insurance, MotorKoe Insurance, SiswaKoe Insurance, Employee InsuranceKoe, Home InsuranceKoe, SehatKoe Insurance, SiagaKoe Insurance, Student InsuranceKoe and WargaKoe Insurance. 

As for Non Pake Koe consists of Fire Insurance, Motor Vehicle Insurance, Transportation Insurance, Personal Accident Insurance, Health Insurance, Doctor Liability Insurance, JSHK Insurance, Money Insurance, Crop Failure Insurance, Notary Insurance, Guarantee Insurance.

6. Entertainment Fees

Staycations, eating well at restaurants, and doing hobbies are some of the entertainment you can do to make your mind fresh after a hectic week.

The cost of having fun must also be planned, you know! You can start thinking about it in terms of the intensity in one month and the allocation of funds spent.

That way, the heart is happy but the wallet is still safe!

How to Manage the Right Finances

After knowing the 6 types of costs that must be prepared in family finances, here are 3 ways to manage the right finances with your partner:

1. Make a list of income and expenses

The first is that you have to identify each type of income earned, for example, monthly salary, bonus, or THR. After that, arrange the cost of routine expenses and expenses in the future, such as the cost of daily necessities, savings, children's education funds, emergency funds, insurance, vacations and others.

2. See Potential Cost Increases

Every year several aspects experience an increase in costs, such as the cost of fuel for transportation, basic needs, housing costs, to children's education funds. By looking at the potential increase in costs, you can predict the amount of funds that must be spent

3. Document Well

Documenting every income and expense well can help you monitor whether your financial strategy is going according to plan or not. In addition, you can use the documentation for financial strategies in the following year.

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