Due to following reasons, one needs to supplement the family income

In our country, for a middle income group, it is difficult to meet all the essential needs of the family and keep a general level of living standard.

In present times, where price index is rising everyday and demands are also in­creasing. It is the Endeavour of every person to eat good food, wear good clothes and have a good house with all modern facilities to live in, but the economic resources are limited.

One has to really work hard in order to im­prove his economic resources and to get all the material comforts. Additional income has to be generated for this and all the family members have to contribute in it.

Now we will discuss why we are unable to meet all expenses and get satisfaction in our income.

Need for supplementing family in­come

Due to following reasons, one needs to supplement the family income:

1. To fulfill the basic necessities of life.

Money is required to fulfill the basic necessities and other comforts of life. It is rather difficult to meet these expenses in limited income. Many families of low income group live below the poverty line and cannot provide two meals a day to its members. Ig­norance, illiteracy, and lack of interest in work are some of the reasons for this. In such circumstances, money management of house­hold is very difficult.

Because of rising prices the financial sta­tus remains same despite of rise in income. To improve the economic status and to pur­chase the essential commodities, it is neces­sary to supplement family income.

2. To raise the standard of living

One can judge the standard of living by knowing to what extends the family is able to meet its needs. Everyday want to enjoy necessities, luxuries and comfort to the maximum. He wants to move to higher standard of living. For this, supplementary family income is a must

3. To ensure savings.

For security and to meet incidental expenses like higher educa­tion and marriage of children, illness etc., it is necessary to save something every month. In such times when essential expenditure is diffi­cult to meet, saving is not possible though it is necessary to save for economic security. There­fore, if we are unable to save from our income, we must supplement for future savings.

4. To achieve family goals.

When a couple starts its family life, they set some goals for themselves which are to be achieved from their available resources. These goals can be short term goals, like buying a freeze or long term goals like purchasing a house.

These goals are to be fulfilled from available income. Due to limited resources and infla­tion, it is not possible to meet these goals. These goals can be achieved by the optimum use and increase of the resources.

5. To meet the financial responsi­bilities during the expanding stage of family life.

The second stage of the family life cycle is its expansion. Here the children grow up and the expenses on their education, clothing, entertainment, etc. also increase. Money is needed for their higher education, marriage, etc.

During this period, tension pre­vails in almost all the families due to finan­cial constraints. There is an increase in ex­penditure but the income remains the same. Supplementing family income becomes more important to overcome these tensions.

From the above stated facts it is impera­tive for the low and middle income group families to supplement their income in order to have a good living standard.

Ways of supplementing family income

There are two ways of supplementing family income. These are:

a. Increasing family income.

b. Cutting down expenditure.

a. Increasing family income

Family money income and real income can be supplemented. Income can be supple­mented by utilizing human resources like knowledge, skills, ability, capacity, and time additional efforts for earning money plays an important role.

Time plays an important role in earning money. Time is a limited resource. Most of our time is spent in our daily activi­ties. If the time is properly managed for do­ing various activities, these can be completed in time.

This way some time can also be spared. This spare time can be profitably used in earning money rather than wasting in gos­siping. Income can be supplemented by fol­lowing means:

1. Cottage and small-scale industry

2. Part-time job

3. Overtime

4. Tuition

5. Preservation and storage of food

6. Kitchen gardening

7. Proper use of material resources

8. Proper investment of saved money

1. Cottage and small-scale industry.

Small-scale or cottage industry can be started if the family income is not sufficient. Such industry supplements family income. Hus­band and wife or any other member of the family can help in these activities.

A house­wife can undertake some activities to supple­ment family income. Knitting sweaters, mak­ing papa bade, grinding spices, stitching clothes, embroidery, crochet work, etc. are some such activities for which the housewife need not go out.

The housewife can run a crèche for small children in one room of the house. She can also run a boutique or beauty parlor as per her interest. In some cities, to supply lunch to the working people is quite popular.

This includes cooking, packing and supply of meals to some factory or office by the housewife. In this way, the housewife can earn money according to her interest and convenience while staying indoors.

The head of family even though he is working, has some spare time. He can supplement his pur­chasing power by utilizing his spare time in some profitable activities. Selling newspaper, book binding, poultry, animal husbandry are some profitable activities. All family mem­bers including children, elders, etc. can be helpful in these activities.

Some small-scale industries like soap making, oil extraction, jiggery making, candle making, spinning cotton and silk yarn, etc. can also be undertaken. Government also gives financial help in encouraging these small-scale industries.

2. Part-time job.

Any member of the family can supplement income by taking up part-time jobs. In part-time job one has to work for few fixed hours and is paid accord­ingly. For example, teaching in schools or colleges for few hours, undertaking the typ­ing work in some office, maintaining accounts in some factory or shop, working for some hours in a shop etc.

The head of the family can undertake such jobs either before or after the office hours. In big cities, call centres are coming up where students can get employ­ment along with their studies. Children, too, can earn their pocket money by taking up summer jobs during vacations.

3. Overtime.

In government, non-government offices, factories, banks, etc. when the work is not completed in time, the em­ployees are made to work overtime for which they are paid extra money. In this way one may supplement his income while working in spare time at the work place.

4. Tuition.

An educated housewife can earn money by taking tuitions in her spare time. This work can be undertaken at home only. Some students studying for higher edu­cation take tuitions to meet their expenses for education.

5. Preservation and storage of food.

During season, the cereals, pulses, spices, etc. are available at much cheaper rates. A house­wife can save time and money by purchasing in bulk for the whole year. Fruits and veg­etables, too, can be preserved when these are easily and cheaply available. She can pickles, chutney, jams, squash, etc. and preserve vegetables by drying. Money time can be saved by purchasing onions, lie, potatoes etc. in bulk. Seeds of watermelon, pumpkins, etc. can be store home or sold in the market.

6. Kitchen gardening.

Seasonal eatables can be grown in the open front or of house by putting a little effort. Some like lemon, guava, papaya, mango, etc. can obtain by planting these fruit trees, pansies to be incurred on these items may saved, thus increasing the real income. Additional money can be earned by selling surplus vegetables in the market.

7. Proper use of material resources.

Available excessive material resources can use for earning money. One or two too can be rented out if the house is bigger the required for the family this rent will the supplement the family income.

8. Proper investment of saving.

Every housewife must save some money eve. Month for financial security and to me incidental expenses in future. In olden days people used to keep their savings at home and there was always a danger of theft, such money kept at home had no apprecia­tion value.

These days, savings can be in­vested in certain schemes in which money appreciates and some monthly income is ob­tained. In this way by putting in some addi­tional efforts, income can be supplemented. For details, refer to Chapter 12 Savings and Investments.

All the above discussion shows that by making efforts, one can earn additional in­come. Before spending time and efforts in generating additional income, one must en­sure whether it would add to his real psychic income or not.

b. Cutting down expenditure

In supplementing family income, cutting down the expenditure has the same impor­tance as the increase in income. Expenditure can be reduced by proper management of income and proper use of available resources.

1. Judicious and economical spending can be helpful in cutting down expenses. In the first place money must be spent on necessities and then on comforts and luxu­ries. This is called judicious spending. For example, husband may carry packed lunch rather than getting it from market. Ex­penses of essential commodities remain the same but sometimes their qualities can be reduced. Making budget is a must for judicious spending.

2. Appropriate spending also leads to cut in expenditure. The housewife should make purchases after comparing rates from three or four shops. Instead of pur­chasing expensive items, one can al­ways go for less expensive substitutes. For example, one may buy seasonal fruits and vegetables which are cheaper.

One can reduce expenses by making purchases from wholesale or govern­ment shops. Proper maintenance of household goods enhances their dura­bility and recurring expenditure on their repair is thus saved.

3. Expenditure can be curtailed by making use of government facilities and services. Money on magazines, etc. can be saved by borrowing them from a nearby public library. Making use of government hos­pitals, schools, colleges etc. also help in saving money.

4. Services of family members also help in cutting down the expenditure. For ex­ample, if the housewife knows stitching, she may stitch clothes at home, thus sav­ing the stitching charges.

Similarly coach­ing children at home, fixing an electric fan or repair of electric appliances by some family member can save money. Economic crises can be avoided by doing household jobs by the members of the family accord­ing to their work efficiency.

By adopting above means, family income can be supplemented and economic problems of the family can be eased.