How To Make Most Of Your Finances

As a mom, one of my role at home is how to budget our monthly income according to our bills, needs and primary commodities. With all the rising costs, taxes and children's education, I really need to consider everything and make the most of it without neglecting the family's needs. But how do I really manage our finances given that I have so many things on my plate already?

Proper budgeting should start early on. I learned how to compartmentalize my money from my mom when I was just in 6th grade. She would always involve me and taught me how to budget our finances way back then. That is why, it wasn't really hard for me to budget our finances. The only challenge comes when you and your spouse has different priorities.

Let me share with you how I manage our finances.

Determine how much you make every month. After gathering information on the money you make and spend each month, you can piece together a workable budget. You will first need to know exactly how much your family brings in every month. You need to include every source of income, not just wages and salary. When you have settled on a monthly budget, it should reflect a good balance of income and expenses. Your monthly expenses should not exceed the amount of your monthly income.


List down your expenses. You should make a list of all the money you spend. What does it include?

  • Vehicle maintenance (if you have vehicles)
  • Insurance, Investments (stocks, mutual funds)
  • Contingency Fund
  • Food menu
  • Education fund, School expenses
  • House maintenance
  • Include day care/ helper/ driver costs
  • Cleaning cost 
  • Taxes
  • Savings
  • Small amount for wants
Assess your monthly budget. After you have figured out your personal financial needs and limitations, you can put together a realistic budget for your family. Try to assess which ones should be given priority and those that are supposed to be removed from the list. If you have allotted a budget and you were not able to spend it, I suggest you put them in your savings or contingency fund.

Home upgrade. If you have high utility bills, you should consider getting your home systems fixed or upgraded. Let go of the appliances that are already outdated or try investing in appliances that are energy saving like inverter appliances, switch to LED lights and invest in solar panels. These may be an expensive investment, but this will reduce your utility cost.


Unplug appliances that are not in use. It may be cumbersome at first, but when you get used to it, it will become a habit later on.


There are simple ways to reduce your utilities - think about a new roof or insulation. When your home is well insulated, you save tons and tons of money with heating and cooling.


Some of these things may cost a lot at first, but it is worth it later on. The money you spent on the initial investment will quickly be returned to you in the form of lower bills. The long-term cost savings can indeed be substantial.

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