Stage 1: Manage your salary or income.
If you and your wife are having regular job as an employee or own a business, then both of your earnings is family income. Input also earnings from non-salary income (routine), for example: side job/business, buying and selling of property, stock dividends, bank deposit interest and others.
Stage 2: Make record of all spending for a month.
It should be ranging from household spending to the purposes of the child and yourself spending, such as: electricity, telephone, transportation (including spare parts, servicing, petrol), children (tuition, fees and other), employee (nanny, driver). Do not forget to include the debt installment (car loans and mortgages), healthcare costs, personal spend (yourself and spouse purposes).
Stage 3: Input to your spending list some money for emergency fund.
This is important because in a state of emergency, you should be able to guarantee the family can still live a decent living from this fund. No less important is the amount of money for savings in your spending.
Stage 4: After calculating the amount of income and expenditure, calculate the rest.
If there is still money remaining fairly, it means that your family finances are healthy. Beware if your finance shows a negative balance. The pattern of our finances is often quite embarrassing to be recognized. Do you feel lack of income? It's not necessary like that!
"It is not about how much you earn, but how much you spend". Is it sounding very familiar with your situation?! :)
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