If you have a family to think about, the last thing you should be doing is frivolously spending your cash without a care in the world. Even if you don’t have anything pressing to pay for, you shouldn’t spend all of the spare cash you have just because you feel like you can. It might seem boring and a little bit unfair, but your priorities need to change when you have a family. Below, you’ll find some smart advice that will help you to handle your money:
Have An Emergency Fund Set Up
One of the first things you should do, pretty much as soon as you’ve decided to start a family, is set up an emergency fund. An emergency fund is there to protect you should you need to repair your car, or take care of another important incident that you weren’t expecting. At the very least, an emergency fund will give you peace of mind, especially if you or your partner need to take a pay cut or lose your jobs.
Having a minimum of 3 months living expenses in your emergency fund is a good idea, although some people like to put away up to a year.
Open A High Interest Savings Account
As well as your emergency fund, having a high interest savings account should also serve you well. You can use this saving fund for the things you see fit, whether it’s a family holiday or your child’s college education. This is not the same as an emergency fund, as you’re going to make goals and plan what this money is for.
Come To An Agreement With Your Partner
Coming to agreements that suit both you and your partner is really important. Money can cause a lot of arguments and rifts! Will you have a joint account, or separate accounts? What are each of you responsible for? When do you feel it’s a good idea to check with the other if a purchase is ok? Make sure you discuss the answers to these questions and any more that you can think of.
Learn How To Separate Your Needs From Your Wants
You need to be able to separate your needs from your wants to manage your money effectively. For example, you need fruit and veg, but you want biscuits and sweets. You need to pay the bills, but you want to go on a family trip to the cinema. If you can afford the things you want that’s great, but you need to be very careful here or you might end up in need of a loan to cover your needs later on down the line. Be smart and know when to spend and when to save.
Work To Stop Accidental Overspending
It’s easy to accidentally overspend. Going shopping without a list, for example, or taking the kids with you and picking up random things they want. You need to be vigilant!
Have Regular Money Meetings
Regular money meetings ensure you’re on the same page, help you to plan for future events, and teach your kids valuable lessons from a young age!