Many families in the part of the 8 billion population in the world today even after having a steady source of income are facing a very large problem within their family realm because of the issue of Failure management of Finance and resources in the Family.
In the course of this article, we will be discussing things that are causing the failure in management of resources within the family sector and also the solutions that can be offered to them in order for them to be able to reactivate the management of Resources within the family sector. We will also look at real life experiences that would really help drive home the points being discussed about.
To begin, let's look at the factors behind the failure in management of Finance and resources within the family sector;
- Mismanagement of Funds
This an important factor which has a strong link to the problem of failure of management of Resources. Mismanagement of funds has led a lot of families who are in a position of being part of those regarded as the first class citizens to be degraded due to not having enough funds to settle the family problems facing the family.
For instance, A man has a well paid job of about #500,000 monthly, his wife also has a well paid job about #400,000 monthly as well. During that month which they received the salary, they spent 300,000 for Groceries leaving the Family funds to be amounted to about #600,000 when joined together, also they paid their children school fees, spending #200,000 on that as well and then paying for their mortgage which they used to buy their Car and house, deducting #300,000 from their account being left with #100,000 which was used to buy foodstuffs for the entire month.
Someone would say that this family really spent their money well, in the sense that they paid for all they wanted and also got all they needed but something was missing, there was no money left for their savings. Which means that if there should ever be an emergency, there would be no fund to be able to solve that issue coming up, thereby leaving the family no option than to go and borrow money from loan companies to be able to settle the emergency.
That problem was caused by them because they mismanaged the funds that flowed into their accounts at the end of the month thereby resulting to going for borrowing.
But if the things they bought on mortgage and the other things they bought and spent money on were carefully examined, you will notice that some amount of money would be reserved as savings for the family which would not leave them with the idea of borrowing as would been done if done on the other way round.
- Understanding
Understanding is another factor behind the failure in management of Finance and resources of the family, this is because, if there is no understanding between the Husband and the wife then they won't be able to know how to manage their income well in order not to fall victim of mismanagement of resources.
To illustrate this, if a man probably the husband discusses the finance of the family with the wife and also suggesting ways they can be able to manage their income well, and the wife is turning deaf ears to the suggestions and ideas of the husband, being negative at every single thing he says, then you will see that there is no understanding between the couple and that their Finance can't be managed well if that happens.
But on the contrary, if the wife listens carefully to the husband's ideas and suggestions and proves to be supportive to the idea, then you will notice that the well planned out management of Finance would go as planned and lead to success as well.
Source
- Concept of Economics
Some families today do not have the concept of Economics and that is the reason behind why they really fall for the failure in management of resources and Finance. To have the concept of Economics in the aim of families, they need to be able to know and develop self-control inorder for them to be able to know when to reduce the amount of money they spend ona particular want or need of the family and also know when to buy A and leave B for another time.
With the concept of Economics, Families can be able to not only save up money but also be able to see the real needs of the family in order not to spend money on things that are not really necessary in the family.
- Selfish Intentions
When the Husband of a Family or the wife develops a selfish desire which involves thinking about himself alone and not things that would benefit the Family in general, then there would be issue of mismanagement arising as the Families account would always be depreciating.
Failure in management of Finance in the family sector comes in when selfish intentions besets a member of the family who helps the family in the finance aspect and when this happens, the family suffers greatly by going into borrowing which would be very bad for some.
We have seen a lot of factors that are behind the failure in management of Finance and resources within the family sector, but then what are the things that can be done in order for those factors not to take root in the family causing them to trapped in the failure of succession in finance?
Mismanagement of funds in the family need to be stopped, in order for the family to be able to Save and also have enough to spend when faced with emergency situations.
In as much as Love and communication is essential in the family inorder for it to grow well, Understanding need to be in the family as well, especially between the Husband and the Wife in order for them to understand each other and make meaningful plans for how to be able to manage their income, which would result to managing the finance of the family well.
Having the concept of Economics and also withholding the urge of selfish intentions would also be of help to go a long way in being successful in the management of the Finance of the Family Resources.
So far, we have discussed the factors behind the issue of Failure in management of Finance within the Family sector and also the solutions to those factors. Therefore Dear reader, if your Family is already practicing a good finance and resource management, then that's great and need to be done regularly in order to fall into the victim of borrowing.
Thank you for taking your time to go through this article, please drop your observations and Comments right there in the comment section.
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