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In the current climate, there is an even greater need to control your spending. There is even more need to do this if you have a family to think about. The money in your bank account, or lack of it, can severely affect your ability to put food on the table and heat your home. Being in control means that you may need to make a lot of changes not only to your spending but to your entire mindset. People can get themselves into financial trouble due to the inability to recognize their current financial situation. This inability only makes things a lot worse. So, to help you out, here are a few ways you can control your family finances.
Make a Family Budget
Working out a budget with a family is a little more complained than working out a budget as a couple. And this is more complicated if you already have a child and have another on the way. If you don’t already, it may make sense to have joint bank accounts or have a joint bank account for all the bills. You should try and use the 50-20-30 rule, which is 50% of your income on all the essential things, bills, rent, etc., 20% for savings, and 30% for leisure activities. If you can follow this, you should have a savings pot. However, life is not always that black and white. If you are spending more than 50% on your essentials, you may need to try and reduce this by moving to somewhere with less expensive rent, for example. Whatever you do, you should make things as manageable as possible, especially if you have a baby on the way.
Make Purchasing Savings
It is important that you try and get as many items as you can for free or for a discount. So, use money off coupons, or free items when you buy x, take advantage when things are on reduced in the supermarket, buy un-branded items – many of these are as good as the branded things anyway, buy items that have been marked down in the store – in most cases, the use-by date is just a suggestion, so do not be put off if the use by date is the same day and you buy for a lot of items.
Teach Your Family About Financing
If you want your family to understand the value of money and how to manage it effectively, then you need to teach them. In school, children do learn about numbers and maths, but this does not equal common sense. It is important that you teach them about interest rates and the cost of using credit cards, teach them about delayed gratification, looking for the best deals, and shopping. Simply understanding maths is not good enough.
Supporting Your Family
For many people, family members do not live with them. Their family may live as far away as India or Africa. Controlling your family finances may mean you have to support people who are not living in the same country as you. The good news is that there are ways to send money to India, Africa, or elsewhere so that your family can benefit from education and medicine, and so on. Financial control is essential for your family’s health and well-being, no matter their location.
