You must have heard the saying, “A stitch in time saves nine”. Well there hasn’t been any scientific study to prove that a stitch in time does actually saves you nine stitches but you get the message. A timely action can save you lot of hassles later.
This saying is especially true in terms of managing your household finances. You can find many examples wherein you could have averted major financial loss had you bothered to pay heed to the signs of impending danger approaching you in the first place. For example a faulty bulb whose brightness has diminished and frequently flickers is a sign for you to replace it. But if you choose to ignore it someday it might damage itself and the internal house wiring. In extreme cases it could even cause a short circuit fire which can engulf the whole house within minutes resulting in huge financial loss. All this could’ve been avoided had you bothered to change the faulty bulb. Thus a small action on your part can avert a major disaster. There are many examples to prove that you can significantly reduce your family’s financial losses if you care to make few minor changes.
Take the example of your home mortgage loan. Very few people actually bother to check out what the monthly installment that they are paying is, what the interest rate the bank is charging them is, what the tenure of the home mortgage loan is and how the installment amount getting divided into principal and interest components is. If you analyze this you can clearly see that increasing the installment amount even by a small amount can significantly reduce the tenure of the home mortgage loan. Or making a part prepayment can help you achieve significant savings during the tenure of the loan.
Similarly if you scrutinize every expense you would realize that few expenses actually are unnecessary and you can sustain your family without them as well. You can get rid of these expenses at first sight. Getting rid of these unwanted expenses can result in huge savings and avoid excessive burden on you. These small tips can greatly help in managing your monthly household budget and ensuring that you build your savings. You can invest your savings in some finance scheme to help them grow. A small investment can fetch you big returns. All this can happen if you care to stitch in time.