Money and Family don’t always mix! Here’s how to achieve a family budget

Ah, family – the source of endless love, joy, tears, fights, trauma…you get the picture. You either get along with your family, or want nothing to do with them. Blood isn’t always thicker than water. Let us help you ease the burden of your family and financial responsibilities with these tips: 

Chapter 1: Start with a Family Budget

The cornerstone of effective family financial planning is the good old budget. You can fire up the computer and start up an Excel spreadsheet, or you can use cash stuffing, or the newest trend, loud budgeting.  Begin by tracking your income and expenses. Create a monthly budget outlining how much money is coming in and where it’s going. Before splurging on something, try to stop and think if you really want it. Every little bit you save can count towards larger expenses. 

Chapter 2: Prioritize Savings

This is clearly an obvious one: prioritizing your savings. The news is filled with pieces about high inflation, high groceries, rent, housing and the cost of everything else that is astronomical. That is where having a budget in place helps: make saving a top priority. There’s no magical number to aim for: it’s just what you can stash away on your budget. Try not to let FOMO (fear of missing out) get the best of you and spend too much. People sometimes develop FOMO from social media. You want to make sure that doesn’t happen to you. You can reward yourself with min-staycations, vacations to other cities, and rewards to look forward to. Then you can still save for the larger purchases, the longer vacations abroad, etc.  Create separate savings accounts for emergencies, vacations, education, and retirement. Automate your savings as much as possible. That way, you’re less tempted to dip into the funds.

Chapter 3: Set Clear Financial Goals

This is easier than done. Obviously, this isn’t easy in a time of economic turmoil. Now, let’s talk about the fun part – setting financial goals for your family. These goals can include buying a home, funding your children’s education, going on a dream vacation, or retiring comfortably. Be specific about your goals (try to attach a rough timeline to those goals) and save!

Chapter 4: Save for Kids’ Education

Education is a valuable investment in your children’s future. It’s always best to help your children out as best you can. You should start when the tykes are small; start by putting away a bit into a savings account (or an investment account) year after year, and give that money to your child(ren) when they graduate high school. This will of course, obviously change as the years go by: your financial options may widen and you may have a variety of options to choose from in later years. Giving your children that money for their education (regardless of which path they choose) will be extremely helpful for their financial future. If your children are lucky, they’ll be debt free by the time they post-secondary. Or, they could use the money for a downpayment for a house or something for their future. 

Chapter 5: Retirement Planning

While helping to save money for your children’s future is important, don’t forget about your own future; ensure that you’re contributing to your 401(k) or IRA. If your employer offers a match, take full advantage of it – it’s essentially free money for your golden years. 

Chapter 6: Managing Debt

Debt can be a significant hurdle in family financial planning. Prioritize paying off high-interest debts, such as credit cards and personal loans. Once you do save, be sure to put that money into investments. 

Chapter 7: Living Below Your Means

Living below your means doesn’t mean living a life of deprivation; It simply means being mindful of your spending and avoiding unnecessary expenses. Make small changes: start with cooking at home, cutting back on expensive vacations, etc. Hopefully there are always ways to cut back on expenses. 

Chapter 8: Insure Your Family’s Future

Insurance is a crucial part of family financial planning. This includes life, property, and health insurance. Regularly review your policies to ensure they align with your family’s needs. Estate planning is also an important aspect of securing your family’s future, you want to make sure there’s a structured approach to distribute your wealth when you are gone. 

Chapter 9: Financial Literacy

One of the most valuable gifts you can give your children is financial literacy. You could start young; start with having your kids budget on their allowances, start small with their savings, which teaches young children about budgeting.

Life changes. Your finances should change along with it. Be sure to review  your budget, goals, and investment strategies. With the rising cost in…everything..this is  more important than ever.