This is a collaborative post.
As a busy parent, checking that your bank balance remains healthy can be the last priority on your “to do” list. Tackling financial issues can be a little overwhelming and often a little scary, especially if you’ve taken your “eye off the ball” so to speak. As parents it is also important to plan for the future. Perhaps you would like to help your children out financially in years to come, or maybe you have dreams of early retirement? Facing up to financial issues head on is the best way to tackle any deficits. You will then be able to make a financial plan for the future.
The following tips may help you get on track.
Do you have any money put aside in case of financial emergencies? If not start an emergency fund today! If you are on a very tight budget, putting just the tiniest amount away each week will help cushion any potential emergencies from happening such as your washing machine breaking. Having an emergency fund will lessen the likelihood of overspending on credit cards and loans.
Balance outgoings with incomings
Basically this means spending less money than you have coming in. This sounds a simple concept in theory, but to make this work you need to budget carefully. You need to be totally aware of what you spend your money on and areas where savings could be made. Remember looking after the pennies will take care of the pounds!
Pay off debt
Use savings to pay off outstanding debt. In particular credit cards need paying off as quickly as possible. Ensure you are on one of the many 0% interest deals available and balance transfer when deals end.
Plan for the future
It is suggested that everyone should plan to save at least 10% of their wage each month minimum. This is especially important if you dream of retiring early. Ensure that any retirement funds you are investing in are performing well. Research smart401k reviews to ensure you are not paying too much in fees for your investment and that you have chosen the best investment for your individual requirements.
Develop a vision of what you would like to financially achieve in the future. Do you want to retire early? Save for a deposit on a house? Visualising the end result will help you stop overspending. You are also more likely to stick to a plan of action.
Increase your income
If there is a deficit with how much you have coming in compared to your outgoings, it would be wise to research ways of increasing your income. You could ask for a promotion at work, work extra hours or change companies. You could also consider developing a side hustle to create extra cash, such as selling preloved items, doing freelance work, selling crafts online that you have made or turning any skills you have into a second career.
Get expert advice
If your financial situation appears to be too out of control it may be worth getting expert financial advice from an independent financial advisor.