When you’re raising a family, staying in control of your finances is essential. Sadly, the vast majority of people experience financial worries at some point. Whether your kids are still young or they’re getting ready to leave the nest, you don’t want money troubles to cloud the precious time you spend with them.
Fortunately, there are sure-fire ways to turn your financial management around. If you want to improve your family’s finances, take a look at these top tips now:
1. Calculate Your Income
Most people think they know how much money they have coming in every month but, in reality, very few people do. If you’re basing your figures on your yearly salary or your hourly wage, then it’s time to take a closer look at what income you’re really receiving. Once tax has been deducted, for example, you could be getting substantially less than you think. By examining your payslips, you can determine exactly how much you have coming in, which will give you the data you need to plan your future finances.
2. Cut the Cost of Essentials
Everyone has essential expenses that they simply can’t avoid. Things like your rent, mortgage, and utilities are considered to be essential, for example. While you’ll always have to pay these costs, you could reduce your outgoings by getting a better deal. A quick comparison search will let you know if you could be paying less for your utilities, for example. Similarly, switching your mortgage to another provider or negotiating with your landlord could help you to reduce the cost of your living expenses.
3. Get Out of Debt
Debt is a major problem for most people, particularly when it starts to spiral out of control. Although help is available, people tend to avoid talking to anyone about debt problems. Sometimes, this is because they feel embarrassed, but others are worried that they may be the victim of a scam. While it’s good to be cautious, do your due diligence and find the help you need. A little research will show you that the Debt to Success System is not a scam, for example. By working to get out of debt, you can lighten your load and transform your family’s finances.
4. Increase Your Income
Many people have lost some or all of their income in 2020, so generating more revenue might not be as easy as it sounds. However, you don’t have to give up your current job and risk starting a new one simply to bring more money in. Instead, you can boost your income by starting a side hustle. With minimal expenditure, a side hustle can be a great way to use your skills to generate more income and improve your finances. From consulting and tutoring to crafts and accounting, there are endless opportunities to use your talents to increase the amount of cash you have coming in every month.
5. Sell Items You No Longer Need
Take a look around your home and you’ll probably find a number of things you no longer need or use. If so, put them to good use and sell them to someone who wants them. Online marketplaces and local groups are a great place to advertise pre-loved items and you might be surprised at how much you can get. Whether you’re selling clothes, games consoles, or kitchenware, it’s a great opportunity to declutter your home and make some money in the process.
6. Consider Moving House
If you live in an expensive part of town or your home is too big for your needs, then you could substantially lower your outgoings by moving into a new property. Downsizing or switching from a prime location to the suburbs can save you hundreds of dollars a month or more, so it’s a viable way to transform your family’s financial position.
Of course, moving into a new home is a big decision, and not one that should be taken lightly. However, if money worries are getting you down, changing your location could be the ideal way to alleviate the stress and reduce your monthly outgoings.
7. Create a Household Budget
Every family should have a workable budget that they can stick to. This helps you to achieve your financial goals and it also means you can keep track of where your money’s going. Start with noting down your income and then add your essential expenses. Any money you’ve got leftover is disposable income, which can be used for fun purchases, like days out, or saved for a rainy day.
Remember – it’s essential to include everything on your household budget. From the cost of kid’s activities to picking up a sandwich at work, be sure to add everything to your budget if you want to ensure your figures are accurate.
8. Make Saving a Priority
Whether you’re saving to buy your kid a car when they turn 16, building up a college fund, or are hoping to take your family on a dream vacation, having a savings goal makes it easier to put away a little money each month. Once you make saving a priority, you can include it into your monthly budget and list it as an essential expenditure. This makes your monthly savings contribution non-negotiable and removes the temptation of spending, rather than saving.
9. Cash In Investments
If you’re in financial trouble, cashing in some or all of your investments may seem like a good idea. However, it’s important to get financial advice before you make major financial decisions. Some investments charge early closure fees, so you may have to pay in order to release your funds. Alternatively, you could miss out on capital growth or even get less than you originally invested if you take your money out now. By talking to a professional, you can get the bespoke advice you need before deciding whether or not to cash in your investments.
10. Make Saving Fun
Many people assume that budgeting and saving money is boring, but it doesn’t have to be. In fact, once you start seeing results, you’ll realize just how satisfying the process can be. By turning saving into a fun game, you can even add a little competition into the mix. Compete with family members as to who can make the most savings this week, for example, or find fun ways to entertain kids at home, instead of spending money on other activities.
11. Lower Your Grocery Bill
Groceries may be essential, but you don’t need to spend a fortune on feeding your family. By honing your skills in the kitchen, for example, you can minimize waste and make your money go further. Meal prepping is a great way to plan your weekly menu, for example, and it means you can spend less time in the kitchen each day and save money on your weekly grocery bill.
If you always seem to spend more than you intended to when you’re shopping, trying going solo. When you’re shopping with kids, it can be hard to say no to all the extras they ask for. By hitting the store on your own, with a list in hand, you may find it easier to stick to your budget and you’ll certainly spend less time in the aisles!
12. Plan for the Future
Estate planning is a vital way of planning for the future. No-one wants to consider what will happen when they’re no longer around but figuring out how to divide your estate and your assets can give you peace of mind. The earlier you start to think about these things, the longer you’ll have to reach your financial goals. By having a clear plan in mind, it will give you the motivation you need to stick to your budgets and make the most of your money.
13. Have an Emergency Fund
No matter how careful you are with money, you can’t predict when an emergency will arise. If you face an unexpected medical bill or your car breaks down, for example, you may need to find extra cash quickly. By having an emergency fund in place, you’ll have peace of mind that you can cope with any unforeseen outgoings. Furthermore, you won’t have to delay urgent repairs while you save extra cash. Adding a little money to your fund each month will ensure you’ve got the back-up you need when things do go awry.
Taking Control of Your Family’s Finances
Managing your family’s finances isn’t a one-person job, so be sure to involve everyone in the process. By involving your kids when you create a household budget, for example, you can teach them important lessons about managing their own finances as they get older. In addition to this, getting everyone involved ensures that every member of your family takes your budget into account before asking for things or spending their cash.
Improving your family’s finances may seem tricky at first but it doesn’t have to be. With these top tips, you can make instant changes to your financial situation and take the first step to transforming your finances for good.