Whether you’re starting out or your household’s growing, you need to know these money-saving tips for families.
According to an article on CNBC, the current inflation makes Americans spend almost $300 more compared with a year ago. Keep reading to know the best tips to help you save more money for your family.
Create a monthly budget as a family
To start with, you need to set a monthly budget together. You can do this by first knowing your net income and tracking your expenses. Also, it’s great to keep the 50/30/20 rule in mind as you plan. This means put about 50% of your budget to your needs, 30% to your wants, and 20% on savings on debt.
Remember though, you need to set aside the savings first then live off what comes after.
Trim down your utility bills
Now that you understand where your money goes, it’s time to decrease your monthly water, internet, gas, and electricity consumption. For water, make sure to quickly replace leaky faucets and you could also collect rainwater for house chores.
As for internet connection, look for providers that have fixed plans, especially those that can rollover unused data to the following month.
Be a smart shopper
Well, first you need to be clear on wants and needs. For this you can use the 30 day rule which says wait for 30 days before buying something you want. If after 30 days, you still feel like it’s worth it then go for it.
Next, make sure to compare the prices before buying. In addition, it would be a good idea to read reviews to know more about the products. You could also compare in store and online prices.
Another huge tip is to go for after-season sales. My mom would buy Halloween candy after the hype is over and she saves a lot. Chocolate is chocolate anyway.
The same goes for seasonal clothes. Buy your swimwear in winter and coats in summer.
If you really like shopping, make sure to sign up for a credit card that has rewards like gift cards, discounts, and airline miles. This can be pretty handy especially for those major purchases.
Go for fun but frugal family activities
There’s a lot of cheap ways to have fun with your family like going to free parks and museums, making homemade play dough, and camping in the backyard. It just takes a little (or maybe a lot) of imagination!
Mind your housing and living expenses
It takes a lot of work and money to own and maintain a home. You can reduce housing costs by living near where you work, refinancing your mortgage, and paying it biweekly instead of monthly.
On the other hand, when it comes to living expenses, just remember one word: minimalism. Simplify your life by buying less stuff, growing your own food, and DIY things at home.
And another golden rule of thumb is to maintain good credit. If you have good credit, you can easily take out a loan for buying a car, for instance. You can click here to know the basics of auto loans.
However, if you’re struggling with bad credit, there are short-term solutions you can go for.
Automate your finances
Automating your finances can help you save time and can help you avoid a lot of headaches. In the past, you’ve probably forgotten to pay the bill once or twice. There may have been times when you weren’t able to alot a portion of your budget to paying your debt and adding to savings. That’s why it’s great when everything’s set up to be automatically done per month.
Learn more and teach your kids about personal finances
For all the previous tips to work, you need to learn and apply what you’ve learned about personal finances, especially debts, interest, and loans. Financial education is a must for everyone.
Be a good example to your kids. Practice good spending habits and teach them how to consider needs over wants.
And of course, show them how to save consistently.