Family is the most valuable asset anyone can have and well worth investing both your time and money into. It is important to consider how much money you will need for a family before you start one. If you are starting a family, or growing your current one, here are some tips to balance your savings and costs.
Consider the big things
Children are great but there is no denying the fact that they cost a lot. Children also generally mean reduced income either from only partner working or the second partner working limited hours. It is important to plan and budget with these conditions in mind before they happen. Pay particular attention to the effect of more children will have on large costs like housing and transport as an extra child may mean a new car or house.
Set a budget
If you haven’t already done so this is a great time to develop sensible spending habits through a budget. By tracking your spending for a couple of weeks you will get an idea of where your money is going. Challenge yourself and set some goals to reduce the amount you spend on some items, even it is only one thing at a time or relatively small amounts like 10% less a month.
Have a plan
Again, if you haven’t already done so this is a great time to make a financial plan and set some long term goals. Set some long term goals of where you would like to be and then some short term spending and saving targets to achieve these goals. If you are reduced to a single income family and struggling to save anything, it is okay if it is accounted for in your plan. By identifying periods of reduced savings you can make up for them at other times, or better still before that occurs. This is why it is important to plan early.
Look for additional income
Having and growing a family is an important time but with many responsibilities you may feel pressured to be choosing between earning income or family time. However, you may be able to find an opportunity to get a little bit extra income without sacrificing your family time. Look for online opportunities that can be done from home, or casual roles in your local area which are time flexible. Earning a little bit extra, and investing it will make a huge difference in the long run.
The key to managing your savings when your family is growing is having a plan based on goals. By using these tips, you will be in a better position to grow both your family and wealth.
By identifying periods of reduced savings you can make up for them at other times, or better still before that occurs. This is why it is important to plan early.