Make a Budget for your Family
Whether you've just started a family and are new to the lifestyle, or you have several kids as old as high school age, it's likely your finances could use some help. If you are in debt, aside from a mortgage, you need to make some changes. If you have no retirement plan because you think you can't afford it, you need some help, too.
Debt can range from the dreaded credit card debt to the necessary mortgage. Most consumer debt including credit card debt, car loans, and most personal loans are not where you want to be.
In order to pay off your debt, you have to cut back on spending, make more money, or do both. When you have all your debt paid off, you can begin saving an emergency fund and putting more money towards retirement and your kids' college.
By making a family budget, you can adjust your spending to start saving. I call it a family budget because your whole family needs to cooperate to make it work. You and your spouse need to be on the same page.
A family budget needs to be agreed upon and followed by the entire family. If one spouses spends all the time, the one saving will make no progress. The kids also need to follow it closely. Don't give them money whenever they ask. Have them get their own job, or at least work for the money they want.
It's important that you pay off your debt as soon as possible because your debt will keep growing and earning interest. You can and should open up a 401K or 403B, if you work for the government or nonprofit, and start contributing to it. I recommend contributing a small amount now in order to take advantage of time and compounding, and then increase your contribution substantially once you've paid off your debt.
If you feel trapped because you try to cut back and are still living barely within your means, take a serious look at your spending. Are you living in a house you can't afford? Your expenses are never as low as they can be if you can ever downgrade your living. Don't just look at cutting small expenses, also look to shave your big bills down.
The small things can still add up. Cut back on cable, cut down your cell phone plan, get a used car to get rid of car payments, use coupons and buy store brand, and stop buying snacks away from home. Move into a cheap apartment until your debt is paid off if you have to.
Debt can range from the dreaded credit card debt to the necessary mortgage. Most consumer debt including credit card debt, car loans, and most personal loans are not where you want to be.
In order to pay off your debt, you have to cut back on spending, make more money, or do both. When you have all your debt paid off, you can begin saving an emergency fund and putting more money towards retirement and your kids' college.
By making a family budget, you can adjust your spending to start saving. I call it a family budget because your whole family needs to cooperate to make it work. You and your spouse need to be on the same page.
A family budget needs to be agreed upon and followed by the entire family. If one spouses spends all the time, the one saving will make no progress. The kids also need to follow it closely. Don't give them money whenever they ask. Have them get their own job, or at least work for the money they want.
It's important that you pay off your debt as soon as possible because your debt will keep growing and earning interest. You can and should open up a 401K or 403B, if you work for the government or nonprofit, and start contributing to it. I recommend contributing a small amount now in order to take advantage of time and compounding, and then increase your contribution substantially once you've paid off your debt.
If you feel trapped because you try to cut back and are still living barely within your means, take a serious look at your spending. Are you living in a house you can't afford? Your expenses are never as low as they can be if you can ever downgrade your living. Don't just look at cutting small expenses, also look to shave your big bills down.
The small things can still add up. Cut back on cable, cut down your cell phone plan, get a used car to get rid of car payments, use coupons and buy store brand, and stop buying snacks away from home. Move into a cheap apartment until your debt is paid off if you have to.
About the Author:
Don't forget about your family money management. It is critical. Get your personal money management and your families finances under control now.
posted by Debt Consolidation Loan at
3:38 AM
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