Financial strength of household and community is one of the important factors on the development of the country and also affects the quality of life in the society. Strong communities where people are able to depend on themselves and have their own standing point to solve their problems can also contribute to this development in long term.
One of the ideas to improve the potential and the strength of the community is to raise the awareness and consciousness of living sufficiently based on the Philosophy of His Majesty the King who lives his life with sufficiency. His philosophy's focus on sufficiency in living will strengthen the community in long term. In this study, household accounting is developed its model and process to support people in terms of financial planning by basing on the Philosophy of Sufficiency. The household account not only helps recording income and expenses in the household, but also helps setting the financial target/goals of the family. The result of this model and process development is the reduction of the expenses, the increasing of income and saving money.
Based on the theory of household accounting and the philosophy of sufficiency economy, the Accounting Model and Process Development under the Philosophy of Economy Sufficiency can be concluded as below:
Community Development Department (2006) stated that family financial planning and life planning under the philosophy of sufficiency economy can help people to escape from the poverty and to be dependent on themselves. Family can start from creating household account, looking for their own outstanding to increase their income from the ability they have. Analysis of the financial problem and finding the way out as well as creating household account can help people to see the overall picture of household expenses and how to balance all income and expenses. Family will have money left for savings in the future.
In the same way as the mission of the Community Development Center District 7 (2007) in terms of living sufficiently, sufficiency is the key point of living life without luxury. Community should be gathered as an occupational group and cooperate with the business and government sectors. Sufficiency Economy should be applied to both in individual and household levels to solve the problem of poverty of people and to enable people to depend on themselves. The Application of Sufficiency Economy should be applied into 3 main levels. The first is consciousness/awareness level. This level aims to create people's awareness of depending on themselves which includes encourage them to be able to assess their problem and solve it by themselves. People will be provided the knowledge and understanding of the Philosophy of Sufficiency Economy and they finally should be able to control unnecessary needs. Next level is the level of performance which means that people have to apply the philosophy to their daily life. Members of family should set their goal of reducing their expenses where money will be left for savings for the future. Also, household accounting should be applied at this level in order that people will know the debt state, the amount of income and household expenses. Accordingly household accounting will help balance their income and expenses. The final level is where people who already applied the philosophy to their life have the sufficiency state in their life and this state is also distributed to the community and social level.
In addition, many researchers agreed that household accounting is very important to the financial management. Phupoom (2008) mentioned that household account should be made a record in every item everyday and family members should make a record into subjects--income, expense and real estates etc. Making a record helps people see the way to increase income, to control unnecessary expenses and to save money for emergency case. Likhitwongsekajorn (2007) stated about the household accounting that this account is the way to record not only for daily income and expenses, but also to know the debt state of the family. It helps to manage the financial status and to think about the priority of expenses.
Phaiboon Booranasanthi (The Community Development Center District 1, Saraburi Province) mentioned about financial household planning that household account is the starting point of living sufficiently. To lift up the quality of our life, people have to realize the importance of controlling the expenses, saving and increasing the family income. Booranasanthi (no date) suggested 5 ways to reduce the expenses which will be shown as follow:
1) "Adapt' is changing the habit of paying the expenses in daily life to suit your life style e.g. meal, electric and water bills, investment for family business, etc
2) "Change' is changing the habit of paying for community expense e.g. helping your cousins, funerals or making merit, etc
3) "Reduce' is reduce/decrease the expenses regarding facilities e.g. television, radio, air conditioner, refrigerator, car, motorcycle, etc
4) "Stop" is stopping to buy luxurious things e.g. clothes, shoes, bag, cosmetic and mobile phones etc.
5) "Quit" is quitting some habits like paying for expenses regarding to liquors, gambling, lotto, cigarette, etc.
Professor Richard J. Stillman, a specialist in personal financial management, defined "Personal Finance" in the book named "Guide to Personal Finance (2000)" that "Personal Finance" is the development and implementation of a sound money management program tailored to meet your objectives" which is "To be successful in financial management, short-term and long-term financial planning is one of the most important factor. " In other words, if people want to improve their quality of life in one-year time, they should have short-term financial planning and so do their quality of life in long term (life time). In the same way, Udomthanasarakul (2007) mentioned that the first priority of changing/adjusting the financial management is to know how to balance income and expenses including savings and how to wisely handle with debt, make an investment. In addition, Yimwilai (2005) mentioned about savings that saving is an income left from paying for expenses and it also means part of income that will be saved as a saving part. This part of saving will be useful in the future when money is necessary to family economic crisis.
HOUSEHOLD ACCOUNTING MODEL AND PROCESS DEVELOPMENT
Based on the studies above, the core idea of the improvement of financial management and household account under the philosophy of...
The model and process development of household accounting under the philosophy of sufficiency economy.
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