6 Smart Ways to Bulletproof Your Family Budget
Tuesday, May 22, 2018, 6:00 AM | Leave Comment
With more and more people struggling to make the ends meet, it comes as no surprise that many of us are constantly on a lookout for various ways to improve our financial situation. Basically, the whole process can be divided into two segments: improving income and cutting down expenditure, but it’s often easier said than done.
You need to be very diligent and responsible when it comes to bullet-proofing your family budget, since it’s only through careful planning and discipline that you can achieve your goals.
So, here are six tips that should help you get on the right track when it comes to managing your finances.
Featured image Source Pixabay
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Increase income
Most of us feel that we are underpaid and would really appreciate having higher salaries, but in reality, there’s not much we can do about it.
Instead, we can look for ways to boost our income by creating new sources of income.
One of the best ways to do so is to find a job that doesn’t require commuting and can be done from the comfort of your home.
Whether you become an online tutor or do simple paid surveys online, thus contributing to your family budget. Also, you might want to start renting out a room in your home through Airbnb and make some extra cash.
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Track your expenditure
It’s vital that you start tracking your monthly spending in case you’ve not been doing it so far.
The fact that you have a list of all your regular expenses, such as rent, utilities, insurance, child care, etc. as well as those you might have from the past, such as outstanding credit card debt or some kind of loan.
This should give you a very clear picture about how much money you need to survive each month and see if you can save at least some of it.
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Include every single expenditure
We sometimes tend to forget those “little things” when it comes to our spending, but that can be a real problem if you want to have a realistic budget.
You may not be able to group every single spending into large monthly buckets, but you need to know where your money is going. So, even the smallest amount withdrawn from the ATM needs to be recorded if you want to have all the relevant financial data.
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Dealing with the unexpected
It’s almost impossible to predict every single expenditure, since many things can simply pop up, such as a broken washing machine, birthday presents you didn’t expect, etc.
That’s why it’s vital you allocate a certain amount that you can count on each month for such expenses.
Probably the best way to go about it is to project a conservative estimate for the year and include it in your budget.
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Explore where you can cut your costs
When you have a list of the items you spend money on, take a closer look at those that you feel you’re overpaying.
Are you spending a lot of money on food and entertainment? Are there cheaper alternatives to the products you’re buying? Would using public transport or carpooling save your some money?
These are typical questions that you might want to ask yourself when you start exploring the options to cut your costs.
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Use modern technology
Hi-tech help is something that would be a pity to refuse. With so many apps offering you a chance to create your personalised budget and help you monitor your financial situation, there’s no reason why wouldn’t want such help.
Also, people are becoming increasingly interested in adding elements of a smart-home to their places of residence, because automatic temperature control for instance can really help you save more money, while modern LED lights both last longer and consume much less electricity.
Image 1 Source Pixabay
Image 2 Source Pixabay
Image 3 Source Pixabay
Needless to say, there are many other ways that can help you stabilise your family budget, but these six tips are most commonly mentioned among those who are really committed to improving their financial situation.
Your situation is most likely unique, and you may not be able to apply all these tips with equal success, but some will definitely do the trick and you’ll reap the benefits of your change in behaviour very soon.
Hopefully, that will motivate you to continue looking for more ways to increase your income and reduce expenditure, thus creating better living conditions for the whole family.
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