Do you ever look at people in their early twenties, or even their teens, and think how jealous you are that payday for them means dividing their spends into how much money theyβre taking out with them to bars and clubs each weekend? That careless and wild freedom seems a lifetime ago now. We all have to grow up at some point. Parenthood is an eye opener like no other. Family finances require thought. All of a sudden there are considerations beyond your own simple wants and needs – because thereβs someone much more important to think of! Iβve been thinking about how to prepare for the future, how to build the foundations for fun times, and that all comes down to finances. So. Letβs look at a couple of ways to make sure that the plan goes ahead as smoothly as possible.
Get in the Driving Seat with Debt
We all detest monthly payments. Thereβs nothing worse than seeing your bank balance on payday, only to see it decimated over the course of the next 24 hours as bill after bill tears away at what would have otherwise been fun to spend. Thatβs why if youβve got mounting monthly payments that are leaving you with very little spare cash with which to plan for so much as a takeaway let alone your childβs future, it may be worth your while looking up some free advice. Creditfix is a website that can help, for example. Donβt be shy. Everybody needs a little help every now and then. Taking a good look at your finances today can potentially save you from despair further down the line. And once thatβs all sorted, and you know how much you have got spare to play with each month, we can move onβ¦
The Family Savings Pot
One of the best pieces of advice I can give you towards building a stronger foundation for your finances is to compartmentalise your efforts. What do I mean? Well, if youβre truly honest with yourself, and if youβre anything like 99% of us, βsaving upβ means using your current account and will power. Trying not to spend whatβs in your current account is a foolβs errand. Things come up. New windscreen wipers for the car, a new kettle, weddings, and events, it all adds up. Before you know it, your current account is back to looking like it always does at the end of the month, which is to say completely bereft of savings. Thatβs why if you want to see results, you simply must compartmentalise your finances. Create a family savings pot and donβt touch it. Pay into it each month. Use it for holidays or days out. Keeping your family happy is more important than almost anything else.
The βChildrenβ Savings Pot Β
Moving on from the idea of a family savings pot, a separate savings account set aside purely for the purpose of having the money to give your child everything they need in life is an idea I wish Iβd had earlier. They grow up fast. Before you know it, theyβll need a car and maybe even some money towards higher education. Start saving now and spare yourself the blushes of not being able to help out.
financesFoundations for Fun Times - Family Finances
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