If there is one thing we all wish we were amazing at, it would be budgeting – right? I have often found that money can be a touchy topic for families to discuss because you either have different views on how to spend it, how to save it, or you just don’t have enough of it. Money can seem like a never-ending issue – and it will continue to be just that if you let it. However, if you want to make sure that you can manage your money well then you need to take charge of your family budget. I know that seems like a daunting prospect, but it can be weirdly satisfying when you actually sit down and get it all to balance how you want it to.
Analyze How You’re Doing
The first thing in getting you started is to actually see exactly where you are right now. Whether you have any idea of how well you budget or not, you need to sit down and look at your financial situation. I make sure to look at our bank statements all the time so I can work out what it is we are spending our money on each month. There will be times where you will be horrified. How much did we spend on eating out last month, yikes? But this often gives you a great basis to then make a change and get things in order.
Create An Ideal Budget
From here, you’re then going to want to come up with an ideal budget. Make sure to allocate realistic amounts to things like your rent, bills, groceries and other areas that you spend in. Then come up with an emergency savings section too that will allow you to cover the unexpected bills such as blocked drains, a broken oven, or no water. It will make you feel so much better to know that you have money set aside to cover the repairs right away.
Prioritize What Matters
You will need to now make sure that you are prioritizing the things that you’re spending your money on. Our prioritise can change throughout the year but the main one is that we have to make sure we cover all the necessary bills that allow us to live such as Mortgage, Water, Electricity, Food, House Insurance and the list goes on for a while. You will need to be ruthless. If you want to free up money for things in life, then taking it away from things that you just don’t care about can really help.
Always make sure that when it comes to your energy bills and monthly contracts you are comparing prices. It can be easy to save on your energy bills if you just try. We do this on a yearly basis by either going on comparison sites or even ringing up our provider and negotiating with them a better price, therefore making sure we are getting the best deal out there. I know how some people might think it is a hassle to do this, but it really isn’t, and when the outcome is potentially saving you hundreds of pounds a year, it really helps balance out family finances.
Put Money Into Savings
With all the above being done will then free up money each month that you will be able to start putting into savings. Whether this is to help book a trip away, buy a house, or just save for the future, there’s nothing quite like knowing you have your financial life in order and you have options.
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