A Simple Formula to Secure Your Family’s Financial Future
Just as none of us would think of leaving the house without the basic necessities – diaper bag, Sippy cup, cell phone, snacks – we should approach our finances with as much care and planning. Yet you’d be surprised at how many mothers have little to no plan when it comes to budgeting their household expenses. Sure, we’re careful about what we spend money on, but how many of us really keep track of even our basic expenses? Over the past few years, we’ve all had to adjust our attitudes toward money. We check prices at the grocery store, buy things when they’re on sale, and generally watch our wallets when it comes to shopping.
But is it enough?
Did you know that fewer than 10% of American households have an actual budget that they live by?
That means that 90% of us are wasting money needlessly, and why? Mostly it’s due to a lack of understanding. Creating and using a budget is far easier than you probably think. And the money that you save by having a budget that you stick to is no less than astonishing.
Budget Guidelines
First off, a budget doesn’t have to be painful or restrictive. Once you’ve started, you might even find it fun to manage your money more proactively. And when you begin to see the results in your bank account, you’ll wonder why you didn’t do this long ago. One of the best ways to begin creating a budget for yourself and your family is to examine your expenses. Go over all of the bills and statements that you’ve stashed in the drawer and really look at where your money is going. Also, look at your debit or credit card purchases. These can be very revealing about where you can cut back. Any charge to a fast food restaurant or a coffee shop should be carefully scrutinized. Next, take out your wallet and count the credit cards you have. Did you know that consumer debt is the biggest enemy you have when it comes to your money? Make a commitment to use your credit cards in emergency situations only. For purchases at the store and for paying bills, write a check. You can get checks for less than the bank charges by ordering online.
Eliminate Debt
If you have been running a balance on your credit cards, make a vow to pay off the balance as quickly as you can. Choose the highest interest card and put as much toward it as you possibly can. Any savings that you find in your expenses should be applied directly toward your debt; it’s the best way to make your money work for you. Finally, set some financial goals for yourself. This is the beginning of creating a plan for your financial future.
Some great goals to consider are:
- Find 10% within your current expenses to cut immediately. You may be surprised at just how easy this is to do.
- Set a date by which you will have a certain amount in savings and have eliminated your credit card debt.
- Examine your recurring monthly expenses like car and homeowner’s insurance. Can you get a better deal elsewhere?
There are a variety of ways to reduce your debt and expenses when you put your mind to it.
If you currently run a balance on your credit cards… above all, pay down your debt and don’t use your credit cards. Use your checkbook when you shop – it will make you more aware of the amount you’re spending. And if you want to have fun with it, consider custom checks that have an image or a message you enjoy. Use anything that will keep you mindful of the money you spend.
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See Also:
- Tips for Getting out of Debt
- 10 Money Management Tips for Kids
- 7 Easy Ways to Eliminate Wasteful Spending
- Save Money On Your Family’s Canine Costs
- More Article to help you Get Out of Debt
About the AUTHOR:
Kim Moore is a freelance journalist and full-time mother of two. She lives in sunny San Diego, CA with her husband, her kids and her dog. She regularly contributes guest posts to a variety of blogs. Her favorite topics are business and finance, health and wellness, and parenting.
