Planning to buy a home while raising a family? Having kids and raising a family require a lot of money. Aside from everyday expenses, you also have to consider educational cost, clothing, shelter, health and a lot of other things you need to pay for.
To help keep your finances on track and improve your financial footing, here are some tips you can apply.
1. Create spending guidelines. Set some spending guidelines for yourself, regardless of how much money is coming in. A budget is the key to all financial success and it is crucial that you stick with it. Separate your monthly spending between fixed costs or things you have to pay whether you like it or not into savings and variable spending.
2. Plan and save for unexpected spending. There are certain events and circumstances that will cause a spike in your spending like the kids getting sick, plumbing emergencies, lost phone or kids going to camp. It's normal. What you can do is prepare for them and plan ahead. Put a specific amount of money aside each month for these expenses.
3. Automate savings. Automated savings ensure that you’re getting the important stuff done because it forces good financial behavour. You can set this up with your bank so that a portion of your pay goes automatically to savings. You won't miss what you didn't have. Right?
4. Pay off your debts first. This should probably be the first thing you have to do in order to sort out your finances. If you are carrying debt outside of your mortgage, pay it off first before you save. Carrying debt can negatively affect your credit rating and directly eats into your monthly spending money. Get rid of it first and then focus on savings.
Sorting out your finances and saving money is a difficult task. And, the best time to start is NOW.
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