Have you ever got to the end of the month and wondered where all your money has gone? Do you find yourself living paycheck to paycheck? Or even have managed to get yourself into debt? Having a budget is important for everyone but especially so for families. Today I am sharing with you why you need a family budget along with some handy advice on making a budget.
Having a family budget is a way for you to be able to keep track on your spending. It shows you where your money is going, makes sure that you pay bills on time and save for those milestone achievements. A budget overall helps you to be financially stable.
Now you know why you need a family budget, let's look at some tips/hacks to help you out handling your finances:
Get organised with your outgoings
Make time to sit down and go through listing your outgoings. If you have a partner than get them involved as it's important to be on the same page.
Direct debits tend to be the same every month such as for your rent/mortgage. Next you need to work out your average for fuel, food, and other activities, such as extra-curricular activities and childcare costs. Its also wise to write down one off costs such as insurance policies, Birthdays, Christmas and Holidays.
Identify areas you can cut back on
Do you really need a subscription to so many TV subscription services? Are you paying for a gym membership but never going? Still paying insurance for a phone you no longer even own? There are areas that you can cut back on if you really look into it.
Automate your savings
Setting up a direct debit to your savings is one less thing for you to think about. There are various savings apps such as Chip that are a great option as they automatically take money as well as you being able to manually save, set up a payday put away and more.
Download a budgeting app
There are many about such as Emma, Cleo and Snoop. I personally use Snoop and like how it shows me what I'm spending my money on so I know which areas I need to improve. Check out this guide on the best money saving apps in the UK.
Set up different savings pots
A great hack which I've started doing recently is having savings pots for different things. This is a great way to get you into saving and I like the idea of having savings separated for things such as Christmas, holidays, emergency fund etc. You can do this with cash or if you are like me and prefer the idea of doing it digitally than a Monzo account is ideal for this.
Use strategies to help save money
Finding ways to help you out to save money each month should be high priority. Look up discount codes and use cashback sites so help reduce costs at checkout. When it comes to food meal planning definitely is one of the best ways to help prevent food wastage and is better on your pocket. Another idea is to try no spend challenges where you challenge yourself to hit a certain number of no spend days every month, or pick a certain day every week. Regular bills aren't included but see if you can avoid buying unnecessary things. Eat food you already have at home instead of takeaways, make your own coffee instead of buying one and skip trips to the shops.
Shop around
When bills and insurance policies are due to be renewed shop around to find a better deal. Comparison sites are great for this and can help you save a fair bit each month. However, it is always worth contacting your existing supplier in case they can price match any quotes you have received.
