6 BUDGETING TIPS FOR YOUNG FAMILIES
6 BUDGETING TIPS FOR YOUNG FAMILIES. Trying to save money when you’re just a young family can be tough. Because of this, many parents find it difficult to stick to a budget for their children and themselves. There are several tips on how you can budget your money, and here are a few that are worth mentioning.
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Set a Budget for All Expenses.
The first budgeting tip is that you should set a realistic budget for all of your expenses. Always remember that you should spend less than what you earn. Not following this money mindset can cause you a lot of money-related stress in the long run. To start with a budget that works, look at how much your household earns per month and set an amount on how much you have to spend on each of your expenses.
You can also research different ways to budget your money and choose the one you think will work best for your family. One of the most popular ways to budget your money is the 50-20-30 rule. This rule indicates that you should be spending 50% of your income on essentials, 20% on savings, and 30% on wants.
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Track and Review Your Spending Habits.
A great way to guarantee that you’re sticking to your budget is to track your spending and review it regularly. There are several ways to track your spending. For example, you can download money tracking apps on your phone or keep a journal where you list down all of your expenses. After you track all your spending, you can review it at the end of each month. Look at which expenses you tend to spend on the most and decide whether you can reduce this spending.
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Work on an Emergency Fund First.
A good rule of thumb when it comes to managing your finances is to work on an emergency fund. If your family doesn’t have any debts left to pay off, then it’s time to set aside a certain amount of money each month for emergencies. Emergency funds should be a total of 3-6 months’ worth of your family’s expenses. Once you build your emergency fund, you can proceed to save up for other goals or save for retirement.
Remember that the money that goes into your emergency fund should already be part of your total budget. With an emergency fund at bay, you don’t have to worry about touching your allotted budget for a certain time when something bad happens.
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Teach Your Family How to Save Energy.
One of the best ways to work around a budget as a family is to teach your family how to save energy. Young children should be taught how to switch off the lights, unplug appliances, or turn off the faucet when they aren’t in use. You can also look into other ways to energy-saving appliances so that you can significantly cut costs on your electricity bill.
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Try to Find More Than One Stream of Income.
If you find it difficult to stick to your current budget, then try your best to find ways on how you can increase your household income. Aside from a full-time job, you can look at whether you have certain hobbies or interests that you can make money from. For example, if you like to cook food for others, then you might want to start a small business on it.
Another way to increase your household income is to find ways to generate passive income. While this is an option for those who already have enough disposable income, it’s a step towards setting a better budget that you can work with.
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Find Ways to Save on Variable Expenses.
The last budgeting tip is to save on variable expenses as a family. Variable expenses are expenses that change over time, such as your grocery bill or how much you spend on clothing during a month. Here are some ways you can save on variable expenses:
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- Buy secondhand: When you need something that doesn’t necessarily need to be new, then try to buy it from someone else. Nowadays, there are a lot of people who sell their used items online, so you don’t have to go to thrift stores just to buy secondhand items. Some sellers are even open to swapping, which means that you don’t even have to spend a single cent.
- Buy secondhand: When you need something that doesn’t necessarily need to be new, then try to buy it from someone else. Nowadays, there are a lot of people who sell their used items online, so you don’t have to go to thrift stores just to buy secondhand items. Some sellers are even open to swapping, which means that you don’t even have to spend a single cent.
- Limit your subscription services: One way to increase your budget as a family is to limit how many subscriptions you have. There’s no need to have five streaming services a month, so it’s best to look at the ones you use the most and only pay for those.
- Always look for deals and discounts: When you’re shopping for your groceries, always compare prices or wait for any deals that you can score. You can also sign up for different rewards services for different companies or get a credit card that offers points or cash back on purchases.
by: Sophia Young
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