The Covid-19 outbreak has become real in our lives. There are so many impacts experienced by various segments of human life. Starting from health, work, education, the most noticeable is the rupiah coffers. Everyone has a different income, however, good management will make it easier for everything that is planned to go well. Financial management for families or households is more complicated than managing personal finances. Family financial management involves husband, wife and children. If the management of household finances goes well, the goals the family wants to achieve can run smoothly. On the other hand, it is mismanaged, so be prepared to experience financial problems and delay in the planned agenda.

Husbands or wives in the family can be in charge of managing expenses, from operational funds to installments, children's school fees, holidays, social or religious assistance, to the little one's snacks. These 'treasurers' are encouraged to be more creative and careful in this regard, because financial sustainability depends on how smartly they manage money. The following are smart steps to manage household finances that can be imitated:

1. Understand monthly income and expenses

First, you must know your income and your partner each month? Add it up properly. Then, also calculate how much routine expenses include the cost of electricity, credit, water, monthly shopping and bills including mortgage payments, vehicles or credit cards. You will know the range of household expenses each month. Make sure your expenses are not greater than income. If so, you need to pay more attention to this and must be addressed immediately.

2. Cut unnecessary monthly routine expenses

Based on the information on monthly income and expenses that you have previously compiled, check which budgets are needed, and which budgets should be cut. Don't be too stingy or too thrifty but be as realistic as possible. For example, the cost of traveling every week in a month can be adjusted to once a month or even eliminated by considering the current risk conditions for the Covid-19 Virus. You can direct this budget cut for investment or savings, you can even use it for your health needs.

3. Pay Liabilities

You need to pay the obligations immediately. For example, paying school fees for children, credit cards, car payments, mortgage payments and others. After you complete your obligations, managing money for operations and daily needs will be easier. Besides, delaying your obligations will have its own consequences such as fines or interest so that the obligations you have to pay will be even greater.

4. Keep Saving

Make sure to always set aside a certain amount of money for savings and investment. This savings can later be used as an emergency fund, while investments can be used as future savings. You can also try to be consistent in the amount you save each month, so that you have your own estimate. In the midst of the Covid-19 outbreak, this is indeed difficult to do, but you can still try to save money, because we don't know what will happen in the future.

5. Additional income during a pandemic or working from home

The Covid-19 epidemic has indeed had an impact on lives, including finance. Be grateful if we can still save or invest. Conversely, we also need additional income during this pandemic. Online stores can be the most feasible alternative at this time, given the large-scale social restrictions in some areas imposed by the government. You can sell products that you can produce yourself or become a reseller of another online store (dropship). This method is possible to increase your rupiah coffers while working from home.

6. Set the Lifestyle

You must maintain absolute health in the midst of the current Covid-19 outbreak. Set a healthy lifestyle, even though activities can only be done at home, you still have to maintain your health. Get plenty of exercise, eat nutritious food intake, and take supplements to maintain endurance. This healthy lifestyle arrangement also requires a separate allocation of funds. You need to consider allocating the funds needed for this, because after all health is the most important.

7. Have insurance

You also have to set aside money to buy insurance premiums. Especially if you already have children. This insurance will minimize any risks that may occur and be transferred to the insurance company. So, whatever happens, we must stay smart and family finances remain safe. Trust me, the Covid-19 outbreak will definitely pass soon, everything remains healthy, and the financial management that you have done can continue.

Author

Rohmad Fuad Armansyah, SE., M.Si.

Lecture STIE Perbanas Surabaya