Home Family and Home Science – Income Management, Advantages of maintaining a record of income and Expenditure

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Income Management is the planned and controlled use of the family income. You have read about the various of expenditure in a family which have to be met with your money income.

  • The income needs to be spent in such a way that money is available for expenditure throughout the mouth.

  • This process of distributing money over various items of expenditure is called income management.

Image of Imcome management

Image of Imcome Management

Advantages of Maintaining a Record of Income and Expenditure

  • Maintaining a record of expenditure helps you in the following:

  • Understand your expenses to know exactly how much is being spent and on what.

  • Check unnecessary spending A look at the balance figure will remind you to spend only on what is really needed by your family.

  • Compare the expenditure of different months- if your expenses for this month are higher than last month you will know exactly where and why you have spent more.

  • Plan for future regular maintenance of accounts makes it easier for you to know how much money would be required for the various items in the future.

  • Be well informed of market trends- the rate column shows you when and how prices rise in the market.

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