Manage your household finances like a business...but don't forget about financial freedom

Build a system that works, which can be adapted as life evolves, and don't neglect to plan for retirement needs

- Alyssa Woo

Even though mine is a dual-income household, money seems to flow out of my bank account faster than I would like. On top of the regular household bills and insurance premiums, there are also school fees and expenses for the children's extracurricular activities, unforeseen doctor visits and so on.

The monthly outflows don't include money for retirement planning and the proverbial rainy day.

The Sunday Times Invest team has run many articles with suggestions and tips on how to manage a budget: Pay yourself first, save and set aside money first so that you can spend the rest without guilt, put your money into pools, automate the savings and so on. They do work, and I employ some of these tips myself, such as automating payments and savings.

But one thing that has really helped me is taking steps to manage my monthly cash flow. There is no better visibility than running a balance sheet, much like how entrepreneurs do it for their business. The financial quantum for businesses is obviously much bigger than for households, but there are certainly some nuggets of knowledge that can be applied.

Mr Gabriel Le Roux, founder and CEO of Primer, a fintech payment infrastructure provider, said there are "definitely similarities" between managing finances for a start-up and for his household.

"Both require prioritising, budgeting and having a clear sense of your long-term goals. I've learnt the value of keeping things flexible. Life (and markets) can be unpredictable, so whether it's business or personal, it helps to build in buffers," said Mr Le Roux, who has two young children.

He automates payments that do not need constant attention, and keeps a clear view of his cash flow. "It's not about micromanaging every expense - it's about building a system that works, and more importantly, one that can adapt as life evolves. Scalability matters, even in a personal context."