On this video, we’ll be talking about home
accounting. Everyday millions of families buy food, go
shopping, avail of services such (salon, massage, entertainment) , eat out – which can be
summarized by one activity: spend money. While it is true that most families have dual
breadwinners still there is always shortage of money. Could it be that the income is not enough? Probably but even families with high-income
complain of not having enough. The problem then is not the income but the
budget. Generally, a budget is a plan which is reflected
in value (money). A homemaker (who usually manages the budget)
spends money as soon as she receives it from the husband’s salary. The money received can be considered receivables. The first thing that is usually done is pay
bills, utilities, credit cards, insurance and other payables. It seems a routine task but what happens actually
is the process of home accounting. The terms may be different in general accounting
since there are no vouchers nor entries at home but there are definitely receivables,
payables and budget. In the past few years, more people (especially
the breadwinners) have utilized the advantage learning home accounting. It is not really a scientific procedure but
rather a more objective way of seeing how money gets spent in a household. Home accounting involves preparing a budget,
listing down all payables as well as receivables, and recording all transactions made.These
transactions can be in the form of paying bills or even purchasing items in a grocery. Indeed, home accounting tracks down exactly
where all the money went including the pennies. This might seem rigorous at first but it definitely
pays back in the long run. First, planning a budget makes the members
of the household get conscious about their spending habits. Once a budget is set, there is not much room
for a splurge on some luxury items since it will affect other expenses. People who would do home accounting for the
first time would be surprised how money is spent unwisely on sale items that were not
even used. Second, the value of delaying gratification
will be instilled in family members. There would be a deeper appreciation of the
value of money aside from just being a commodity. Lastly, one can make decisions about the future
since there is an concrete overview of resources available. Indeed, home accounting benefits not only
the planner but the whole family as well. Visit our website to read more info on home
accounting at accounting.versefinance.com