Organising Family Finances and Records

It takes more than love or tradition to run the quotidian affairs of a 21st century family. It needs good management. One of the major responsibilities of married and family life is organising and managing finances and related issues pertaining to the material well-being of the family. An equitable distribution of finances and financial responsibility between the couple works towards the benefit of the entire family in the long run, and this is worth keeping in mind. Of course the nitty gritty details vary with the needs and situation of each family but there are some general guidelines which will be of help to everyone.

A key factor is the role of the woman-when it comes to financial responsibility and managing the faily's resources, not everyone has quite moved into the 21st century. Some women, and this includes educated professionals, still prefer to leave all the financial and legal side of things to the husband or other male members of the family. In this day and age this is tantamount to a sort of ostrich-like irresponsibility. It is vital for every woman to be totally aware of her own financial situation - whether she is a homemaker. This need not imply lack of trust in her husband or other relatives - rather it is to the benefit of both that the burden is shared equally. It is always wise to be in control of those aspects of your life you can be in control of - there are enough things over which you have no say! Besides, should anu adult be dependent on someone else to make all the important decisions? The one thing one can count on in this life is the unpredictability of circumstances. So it is the duty of each individual to be as prepared as possible for what ever fortune may chose to deliver - illness, husband out of station, money or financial decisions needed urgently for some emergency of the other, etc. More than anything else it is a question of being practical - as the old adage says 'two heads are better than one'!

Organise all your household records and personal documents so that they are both easily accessible to you as well as secure, Ideally, they should be stored in a fireproof metal box or cupboard. Or you may wish to store the originals in a bank locker, while retaining photocopies. Important personal documents include - birth, marriage and death certificates; passports; degrees/diplomas and any other certificates of qualification. Other legal or financial documents include all documents relating to any property you may have; loan details; power of attorney; insurance/life insurance policies; wills - the originals of the last two documents should not be kept in the last two documents should not be kept in the bank as it should be easily accessible after a death. Do ensure that you have photocopies of all these vital documents. Get several files to help you organise different paper and documents to make running your household efficient-e.g:

all papers relating to your home

all papers relating to your vehicle/s

bank statements, passbooks, chequebooks and any other details of all your bank accounts credit/debit cards

other financial records like mutual finds, stocks and shares, etc

insurances (it is also a good idea to have photographs of insured objects like jewellery) income tax retrns

bills - telephone/mobile phone, electricity, etc.

gas bills. grocery bills, household accounts, ration card, etc

guaranties, manuals, receipts, service contracts, etc for household appliances like the TV, fridge, water filter system etc.

Medical records, doctors' bills prescriptions, etc. You need to keep track of these on a regular basis(at least once in 3 to 6 months) and update them when ever required. This is very important, especially with things like insurances. You could lose out just because you forget to pay your premium on time. 'Iforget,' is not legally valid in a court of law! Avoid having to spend more (on fines) by paying your insurance premium and credit card bills, etc, on time or before the due date. With all legal/financial documents it is necessary that you are aware of what the obligations and entitlements of all parties concerned are. Always, always read the small print! Ensure that your signature is there in all the relevant places otherwise the document could be invalid by law-even if you have paid money. Always have signed proof of any monetary or legal transaction - those whose intentions are honourable should have no objection in providing such security. And keep your bank, insurance company, etc, informed about any change of address. Various points to keep in mind:

Start your married life by dealing with the finances and planning for the family's future, together.

Keep track of monthly income and expenditure - and draw up a budget to try and ensure that expenses are always less than income. Be realistic when planning a budget!

Think long term, plan for your children's education as soon as they are born: start saving for your early thirties; make contingency plans for emergencies.

Savings, investments, property, etc - wherever possible, should ideally be joint or the name of the spouse as nominee should be duly filled in.

Store important documents in a joint locker.

In case of joint accounts and credit cards, remember to keep each other updated about individual transactions.

Remember, legally it is not whose money bought property that is as important as in whose name it is in (unless the property in a monor's name when it will be under the control of the legal guardian - in most cases under the law - the father)

Taking care of the little details helps you protect your family and your future. it also means that you do not have to spend all your life worrying - once these things have been taken care of at the right time, you can concentrate on living!