When you start a family, it can be difficult to cope with all the commitments, the pressures, and the financial constraints. Life is easier when you’re single, and you don’t have any children. At that point, you only need to look after yourself. But, when you commit to a family, there are other people who depend on you. Your kids need your support, and your partner might need your help to keep finances in the green. Did you know that around a quarter of people across the country will struggle to pay basic expenses this year? Everything from monthly bills to summer vacations could feel like a massive hurdle that you’re not prepared to leap over. Instead, the money drains away, seemingly as soon as it enters your account. What’s going wrong and how can you make things easier, raising your kids and your finances at the same time?
Be A Budgeting Babe
The first piece of advice I can offer is that you make sure you’re budgeting your expenses. It’s important that you don’t live past your means. If that happens, it’s only a matter of time before you end up in serious levels of debt that you won’t be able to pay off. The good news is that budgeting is easy once you get started. The first step is making sure you know how much money you have in your disposable income. Your disposable income is what you have to spend that isn’t tied into bills or other costs. To work it out you need to add up all your monthly outgoings. You can then subtract that from your total income. What you have left over is the money you’ll have to spend through the month. But, you have to remember that there could be unexpected costs and bills to contend with as well. So, you do need to be prepared for these. The best way to do that is to add a little extra into your calculations. A couple hundred should do the trick here.
Then, it’s time to consider savings. Savings should be roughly a quarter of your monthly paycheck. If you can’t manage that you may struggle with future financial issues. For instance, one day you might want to stop renting and start buying property. To do that, you need to have some money saved up in your accounts. Otherwise, you’re not going to be able to get a good mortgage deal, and this can make buying property incredibly expensive. If you’re struggling to save even a small amount of money, there’s an easy answer. You just need to make sure that you are treating it as a tax or a bill. That way, it needs to be paid, and you really have no choice in the matter. This might put pressure on your bank balance at first, but in the end, it will be worth it.
There are a lot of issues that can hit your family that others may not have to deal with. For instance, you need to think about job stability and how much you can rely on your income. It’s possible that you don’t have a contract with your employer and instead work as a freelancer. If that’s the case, you need to prepare for the possibility that you may not always have a job or a fixed income. Freelancers should really be saving more in case there is a point through the year where they struggle to find work. Again, this is particularly important when you have a family.
You might also be reliant on your partner’s income. If that’s the case, your mind will be on other issues such as keeping the house in order and ensuring that your kids get a great education. However, you do need to understand that it can be difficult to survive on just one income in the family. For instance, there are plenty of military families who have to rely on installment loans online to get by. The reason for this is simple. In a military family, incomes can be lower, and parents must do whatever they can to stretch their finances.
You might also find that you have to deal with an unforeseen financial issue. If it’s unforeseen, it won’t have been planned into your budget model. You might also find that it isn’t even covered by your savings because it’s too expensive. An example of this would be high-cost medical bills. You might hope that you never have to deal with the issue of expensive medical bills. But the costs can range anywhere in the high hundred thousand for complex medical procedures. It is also possible that it is not covered by your insurance plan. In this situation, you will have no choice but to borrow money.
If you do end up borrowing, make sure you are taking the capital from a reliable, trustworthy source. There are plenty of lenders online who only have the aim of driving you into debt. That said, there are others who want to help and are really there to offer relief to those in need. It’s up to you to find the right company that matches your needs.
Boost Your Income
One of the smartest things you can do when dealing with the financial pressures of raising a family is raise your income. Experts these days suggest that you should have more than one source of income. That doesn’t mean that two members of the family should be working. They mean as an individual you should have at least two sources of money for your account. At least! Ideally, you want several bank balance cash injections. This also does not mean that you are expected to work two full careers or that you should. You might have one full-time career that takes up most of your time. However, some of your spare time could also be spent on a side hustle.
A side hustle is a smaller job that you can complete in your spare time. It’s best to build a side hustle around a passion or something that you enjoy. For instance, you might love teaching. If that’s the case, you might want to work as a tutor. It’s worth pointing out that you don’t actually need a qualification to work as a tutor. Though, it will allow you to increase how much you can charge. We think you’ll agree that’s always beneficial.
You can also offer your services as a freelancer. For instance, you may love blogging. There are plenty of blogs online that are always looking for fresh forms of content. So, by offering your services, you can make some money and even build a rep online to build a new public profile. This can, in turn, lead to more exciting ways to make money.
It’s also worth thinking about investments. Investments are perhaps one of the easiest ways to increase your income without putting pressure on daily activities. Again, there are lots of choices here from stocks to gold and other precious metals. You can even transform your home into your most valuable investment. By making small yet important, home improvements, you can fundamentally shift the value of your home towards the sky.
As you can see then, there are certainly financial pressure to consider as a parent and a wife or husband. But there are always options to deal with these issues if you take action. You can strengthen your financial position and ensure that your family always has the money it needs.