If the last 2 years have taught us anything, it’s that we need to have a better understanding of our finances, and to have a bit of money set aside incase of an emergency or something happening that is out of control. For us personally this is even more important as we are self employed…in an industry that ground to a holt due to the lockdowns. But I think regardless of the last 2 years it is super important to understand your finances, what you have coming in to your household, and where that money is being spent. This also allows you to have a better understanding of where money could be saved and allow you to start savings pots for future goals.
So todays post is going to give you a few great basic tips to help you get your family finances in order!
Making a budget
This is the most basic place to start when you are looking to get to grips and understand your finances! You need to sit down with some pen and paper, work our all your monthly incomes, then all your necessary outgoings (bills, insurance, classes, memberships, subscriptions etc) and make yourself a family budget. This needs to include set budget amounts for all your outgoings such as food, going out, clothes or even savings post for holidays and birthdays. Once you have it all written down, you can see how much money you have left over, this either goes towards a savings pot, your ‘fun money’ or if needed towards debts!
You might find a budgeting app helpful for keeping track of your finances on the go. There are lots of different ones available at the moment, and each offer different services, so have a read of the Top 10 Budgeting apps here and see which might fit your needs the best.
Check out this Ultimate Guide on Family Budgets for loads of tips and tricks to get your budget in order!
Get Rid of Debt
Debt can be a huge burden on your monthly finances and can cause a lot of stress if you are struggling to keep on top of it. Getting rid of any debts you have should be a major priority when you are looking to get your finances back on track. If your looking for more information on debt consolidation or to find tips on how to reduce and pay off your debt, check out this site for more info. Once you are clear of your debts you will free up money in your monthly budget to allow you to put towards savings goals or future plans.
Lower your monthly outgoings
Another great thing about decided to get your finances in order is that it allows you to see exactly where your money is being spent, and it tends to make you far more conscious of your spending habits. Quite often you will be surprised by how much you are spending on certain things, and in some cases how much you are simply wasting on unnecessary stuff. So this allows you to start cutting back on items that really aren’t needed, and in turn beings to lower your monthly outgoings, again freeing up more for other more important things
And its not just frivolous spending you should be looking at reducing…
Compare your bills
Its great to get into the habit of regularly using sites like Money Supermarket or Go Compare to check if you are getting the best deal on your household bills and insurances. If you are able to lower your monthly bills you can make a big saving over the course of the year. This goes for things like tv, internet and phone packages too. Really asses whether you need the ice of the contracts you are on and if not consider lowering them or getting rid of them completely.
Don’t forget to look at sites like Top Cash Back and Quidco to see if you can make even more savings when you switch by getting cash back on your purchases!
In Conclusion
This is just 4 ways to really start getting to grips with your family finances for 2022. They will help get your started on the road to more financial independence and keep you financially confident for the future.
