Wednesday, August 31, 2016, PM | Leave Comment
While money can’t buy happiness, few would argue that having your household’s finances in order can make life easier and more enjoyable.
Getting the family finances in order does not have to be overly complicated or time consuming.
The following four tips will help get you on and keep you on the right track:
Tip #1: Make a budget
One of the easiest ways to keep your financial house in order is to make a budget and stick to it. A budget is nothing more than setting a monthly, weekly, or daily goal for expenditures.
To make a budget, it’s a good idea to first simply record both your income and your expenses.
Review this information, and see what you’re spending on unnecessary items, like fast food or extravagant entertainment.
Set a goal to spend only what you need, plus a little extra for fun and emergency. Once that goal is set, stick to it! Any money left over can be added to savings or used for other expenses such as a vacation.
Tip #2: Plan large expenditures
Avoid making any impulse purchases. If you need a new car, take your time to plan the purchase according to your needs and budget. This will help you find the best products for your needs, and will save you a great deal of money.
Planning large purchases ahead can help ensure that you do not overpay for something, and that you are fully satisfied with your purchase.
It will also allow you to take a look at all available financing options, instead of being cornered into a less than stellar rate on an automobile loan.
Tip #3: Avoid debt
Some types of debt may be unavoidable, such as mortgage debt or car loans. Other types of debt, however, can lead you straight to the poor house.
Avoid carrying a balance on credit cards, and only make purchases you can pay for with cash.
Establishing a small emergency fund can also help you avoid having to use expensive credit cards for unexpected costs such as home or auto repairs.
The experts at Family Financial Partners say that this is an important lesson to teach even children.
Take the time to your kids about the importance of avoiding debt and credit at a young age, and they’ll be making sound financial decisions when they eventually have an income.
Tip #4: Make saving automatic
One of the simplest ways to make sure you save each month is to put your savings on autopilot.
For example, if you get paid on the 15th and 30th of each month, have a specified percentage of your net paycheck automatically deposited into a savings or brokerage account.
You will never even miss the money, and you will be astonished at how fast your savings can compound and grow.
Contrary to popular belief, getting the household finances in good working order can be a lot easier than people think. In fact, it can even be downright fun.
Take the time today to go over the household finances and put a plan together—and don’t be afraid to get the whole family involved. This can help you avoid money issues so you are free to enjoy what is really important in life.Facebook.com/doable.finance