When you assume the responsibility of running a household, you also must take an accounting of the costs it takes to make a house a home. In effect, it can be likened to running a business if you want your home life to be successful. That is why budgeting is so important in maintaining your home for you and your family. For example, just like a business, you should take an inventory of all those items you have on hand in your home for insurance and financial purposes.
The Importance of Documents And Recordkeeping
Just like a business too, you should also keep an inventory and take an accounting of the important information for your home. General documentation can include passports, birth certificates, marriage certificate, wills, social security cards, school records, and employment information. Budget-related documents should be comprised of:
• Banking account numbers and statements
• Credit card data
• Retirement account information
• Insurance policies
• Tax data
• Deeds and mortgage information
• Records for home upgrades
• Warranties for appliances
Filing And Storage of Household Records
Of course, once you have all this information, just like a business, you will need to find a way to manage and store it so it is easily accessible. That is where the computer comes in handy. You can file some of the aforementioned data on your computer. For hard copy materials, such as passports or insurance policies, it is best to reserve a safe deposit box at the bank. You should maintain I.D.s for all members of your immediate family, such as driver’s license, social security cards, birth certificates, and insurance cards. Also, make sure you have at least a couple of checks with the account number on them even if you use your debit card frequently. Also, make sure the key for your safe deposit box is located in a spot where you can easily access it. It’s really best that you maintain all your important information in just one area of the house for easy retrieval. Whether you digitize the information on your computer or maintain it in a filing cabinet, all the above information is necessary for an organized and well-run household.
Organization Is Key To Running A Household
As you can see, keeping an inventory and managing the records for your home will make it a lot easier to budget and enjoy a better home life as well. It also gives you the incentive to financially plan for the future so you can create goals for yourself and your family. As in business, everyone in the family is a “team member” who contributes to making everything run smoothly. Therefore, when you know what you have on hand and establish a personal budget, it makes it easier for you to plan activities for the family and maintain everyday routines.
Assuming the Role of Chief Financial Officer
So, can you be the CFO in your household? What values do you want to instill in your children? If you run your household and maintain its budget, you understand the importance of:
• Detail – taking an accounting for what you spend as well as what you have in your inventory
• Being practical – in other words, you understand the true worth of things
• Self-reliance – you don’t need your hand held – you take responsibility
• Self-confidence – you know that value is not based solely by your lifestyle
Aren’t the above qualities the type of characteristics you want your children to possess? Don’t all the listed traits make us happier in our daily lives? It may not sound glamorous to compare running a household to that of a business, but it can reap you great rewards with respect to the special times you set aside for you and your family and how you live your life each day.