Create a budget
Creating a family financial budget is very important for the entire household. Sit down with you and your significant other to make this budget. List out your take-home pay as well as all of your expenses. At the end of the budget, there should be a surplus of money. If not, you are either spending too much money on things you don’t need or you are not making enough money. Whatever the case may be, adjust accordingly.
In your budget, it is important to be saving at least 15% of your take-home pay. You can choose where to put this money too. I’d recommend putting it into a sacred savings account that cannot be touched. In the end, saving money is as important as making money.
One place that I would recommend putting this 15% is into a $1,000 emergency fund. Let’s face the fact that good things happen to good people. This emergency fund will mitigate the effect of the emergency on your lifestyle. After you get this $1,000 set aside, save up 3-6 months worth of expenses. Both of these funds will help protect you and your family if something bad does indeed happen.
With couple with younger children at home, entertaining the young ones can be expensive. The good news is that you can find cheap alternatives to fueling their entertainment. One of the things I loved doing growing up was going to the beach and swimming in a friends pool. Going sledding, making snowmen, and a lot of other activities are free and a fun for the whole family.
It is important to invest for your retirement especially if you are a parent. Find out if your company offers a 401k plan. Also, open up a Roth IRA as this will allow you to grow your money tax-free over the years. This will allows your money to compound at a faster rate than normal. I’d recommend investing on your own. This can either be in the stock market or it can be in your own business. In the end, you have to find a way to expand your money. Investing your money allows you to do this.
It is important to start to save for your kid’s college and overall education as soon as possible. As college costs continue to rise, you might need to put a little extra money away. However, you are decreasing the amount of debt your child will have to take out for student loans once they reach that age. It is a very noble thing to do for your children. Also, have them apply for as much financial aid as they possibly can. The more scholarships and grants they get, the better off financially you will be.
Most likely, there are parents and people in general who have already dealt with your current situation. Two financial gurus that I look up to and take advice from are Grant Cardone and Dave Ramsey. These are individuals who have made it financially and are currently helping others to do the same. In the end, you have to learn from the best. You can also listen to podcasts or even meet with other families that are doing well financially. In the end, it is all about surrounding yourself with people who have what you want.
Income is king. That is one of the many things I have learned from Grant Cardone. Your main goal should be to increase income. You can only cut your bottom line so low but you can increase your top line as much as you want. Whether it is picking up an extra job, starting a small business, or doing odd jobs online, all of them will help increase your income.
Teach children about money
In today’s day and age, money is considered taboo in many households. Taking a different approach, I would recommend talking to your kids about money and teaching them the importance of it. I would show them that money is gained by providing value to others and making their lives better as a result of your actions.