Take the pain out of managing your finances
Taking care of household finances can be taxing, especially if you have a big family. But with proper planning and budgeting, there’s no need to stress.
Here are some tips to help you effectively manage your household finances.
1. Examine your finances
This is often the toughest one to start with because it means facing the truth about your finances. However, put aside some time and take a few deep breaths and calmly sit down as a family and figure out how much money is coming in and going. Set some ground rules for your conversation:
- IMPORTANT: Create the space where everyone feels safe to say what they feel. Finances are often linked to heavy emotional experiences and it is important to acknowledge this if it makes you feel stressed. So, if you can’t do this, then don’t even think about reading on. It’s ok though, you’re not alone, it’s very common Australians are increasingly anxious about their finances. ReachOut has some good tips to manage financial stress and the Australian Government provides further options through Health Direct , including understanding if you need to seek professional help.
- Understand that you will not find a solution straight away, it will often take numerous family meetings before you all agree on a path where everyone is happy.
2. Rein in spending
Keeping expenses under control can be tough in a large household. But it’s no great secret, if you’re spending as much as or more than you’re earning…then you can’t save. You might want to consider limiting your family’s discretionary costs by buying only what you can afford. You don’t have to forgo your lifestyle, you just need to get smarter. Life Hack has 30 ways to cut your spending which can help you get started.
3. Set financial goals
Your everyday choices to stop spending on something can feel a lot better if you know you are doing it for a reason. Setting financial goals as a family may help you work towards future aspirations instead of feeling like you are missing out. Whether it’s buying a bigger house or going on a dream holiday, having a financial goal may help your family set priorities and stay on track financially.
4. Keep a budget
Yes, that old chestnut that you’ve probably heard a thousand times. Keeping track of spending may help you to better manage your family’s finances. By working with a professional financial adviser, you could create a budget that factors in not only income and expenses, but also your financial obligations.
5. Build up emergency and retirement funds
Unplanned expenses such as unforeseen medical bills can put a dent in family finances. By growing your emergency fund to cover six months’ worth of expenses, you may be better positioned to handle unexpected events.
While it’s easy to neglect your own financial future when providing for your family, saving for retirement should not take second place. Keep in mind that the earlier you start saving, the better chance you have to grow a sufficient nest egg. It doesn’t have to be much, every little bit helps.
Working with an adviser
Given you are on our website, it makes sense we suggest this… Managing finances for a big family need not be a painful exercise. By working alongside a financial adviser who takes the time to understand your financial goals and the values on which they are established. You get to start your journey towards feeling great handling your household finances.
If you’d rather GET STARTED NOW ON YOUR OWN, then we’re happy to offer you an obligation free copy of:
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This article has been edited from the original copy found at our Licensee, RI Advice. https://riarticlehub.com/2019/05/01/five-tips-for-looking-after-your-large-households-finances/#more-1154