Keeping your finances in check is no mean feat, especially when you have a family and you’re trying to think about both the present and the future. We all go through times when we have more or less money than usual, and sometimes, you have to make decisions about whether to spend or save. If you’re keen to take a firmer hold on your family’s finances, this guide should prove useful.
The benefits of budgeting
Before you think about spending money or making a payment to your savings account, check your balances and have a look through your monthly budget. If you don’t budget at home already, making plans can make life much easier. If you know what you’ve got coming in and what’s going out, this can help you work out how much disposable income you have and how much you can afford to save. Budgeting is very simple, it doesn’t take long, and you can update your budget as you go to ensure that it’s always accurate. If you tend to fall short by the end of the month on a regular basis, budgeting could be particularly beneficial for you. It helps to prevent overspending and enables you to spread your money over a period of time more effectively.
Speculating to accumulate
If you read finance articles frequently, you’ll come across lots of advice about saving money whenever it’s possible to do so. This is a wise thing to do, but sometimes, you may find yourself in a position where it may be beneficial to speculate to accumulate. Consider scenarios such as moving up the property ladder or making improvements to your home, which will add value in the long-term. If you’re renting and you’re thinking about buying a house, for example, it’s worth looking into your options. If you can get a deposit together, you may find that you’ll pay a lot less for your mortgage than you do in rent and you’ll be investing in an asset that you own. Likewise, if you need more space at home, spending money on an extension or an attic conversion could boost your coffers when you come to sell. If this option sounds appealing, you may find this article interesting http://www.goodhousekeeping.co.uk/news/how-to-add-value-to-your-home.
If you can’t afford to finance the next step, think carefully about your borrowing options and research lenders. You can find information about PrettyPenny.co.nz and other providers online. Before you sign on any dotted lines, make sure you can afford the repayments and ensure that the move makes financial sense. If you plan to convert the loft, for example, ask some agents and builders to come and give you quotes for building work and an estimated valuation once work is complete.
Living within your means
We’d all like to be in a situation where we can live comfortably and save at the same time, but this is not always possible. It’s most important to live within your means. If you’re paying the bills, but you’re not saving, don’t beat yourself up. It’s more important to avoid debt and bad credit scores than to try and save money you don’t have.
Managing your finances can be tricky, especially if you’re trying to live on a single income, you struggle to get from one month to the next, or you’re trying to clear debt. Hopefully, this guide will help you make the right decisions for your family.