Among health kicks and career goals, New years resolutions often reference financial matters. Especially in a time preceding holidays, which more often than not break the bank, this can be a time where those with families feel the effect of overspending. To begin again and start the year fresh, we offer 3 simple financial tips for families.
#1: Be Budget Wise
Though it’s not the most enjoyable experience to sit down and do the math, creating and setting budgets is one of the most effective ways to be transparent in understanding your income and spending habits. Start with simple figures like monthly earnings from all contributions, and then get an overview of lifestyle spending of groceries, utilities, activities, school costs, etc. This will give you a basic idea of whether you are living in your means, or racking up more debt.
#2: Stay On Top Of Debts
Whether mortgages, loans or credit cards, make a list of all debts and be sure to know your plans of repayments for each one. Categorize into short and long term debts for more clarity. To really get on top of repayments in the most effective way, consult a financial professional to advise which debts you should repay first, and how often repayments can be made.
#3: Plan For The Future
ESPECIALLY important for those with dependent children, be sure to be future savvy and keep a retirement fund active in your savings plan. For couples, consider consolidating retirement accounts for an ease of calculating future budgeting, as well as minimising fees. Contributing to a retirement fund also ensures that your children will not have the burden of financial responsibility for you later in life, also consider life insurance policies, which include funeral costs and insurances.