Managing Your Family Finances: The Basics

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Managing a family takes a lot of effort. The hardest part? You’re often thrown in at the deep end with little or no advice on how to manage your finances. One of the main causes of stress for families is debt. Sinking into the red can result in all sorts of arguments and tensions and can often cause problems with being able to afford treats or perhaps even essentials (such as new uniforms, healthy packed lunches or hobbies) for your little ones. So, to avoid all of this, it’s time to take your finances into your own hands and tackle problems head-on. Here are a few ways to ensure that you always have a positive cash flow in your family home.

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Consolidate Your Debts

First things first, you want to deal with any current debt that you may have. Many of us will already have different debts behind us. One of the most common ones? Student debts. Of course, higher education is brilliant and opens all sorts of doors when it comes to careers and other opportunities. But more often than not they prove more difficult to pay off than you expected. Why? High-interest rates. Most people with student loans make regular payments, but these generally only cover the interest, so they are never really clearing any debt at all, making the debt perpetual. Save yourself interest by wisely consolidating your student loans with a company that will offer lower interest rates. For more information on this, take a look at This method works for other debts too. Perhaps you have multiple credit cards. You can make life much more simple for yourself by consolidating them by taking out one large loan, clearing your cards with the cash and paying everything back to one lender. This means you are less likely to miss repayment dates, incurring fines and late payment fees, as you will have one date a month to repay your dues. You may also be able to get a lower interest rate than those of your current cards combined.


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Once you are in a better place with your financial organization, you want to keep your head above water, rather than accumulating any more debt. A budget is one of the most simple and basic means of financial management, but it’s effective. Sit down with a pen and a piece of paper and note down your salary after tax. You can make your budget on a weekly, monthly or annual basis depending on what suits you best. Next, make a note of the cost of your essentials. This will cover things such as rent or mortgage repayments, bills and food shopping. Deduct the total of your essentials from your salary. The amount left is your disposable income. You now need to ensure that whatever you spend in the given time period doesn’t exceed this amount. If you find that you are spending more than your disposable income allows for, you’re digging yourself into debt. Start making cuts to luxuries. There are plenty of savvy ways to save on non-essential items. You can buy second hand and engage in more free or low-cost activities (such as trips to the park, visiting relatives or doing arts and crafts with recycled trash from around the house). This ensures that your little ones are still getting everything that they need and taking part in productive activities without breaking the bank.

By using these tried and tested methods, you will have a much easier time managing your family’s finances. This lifts the weight of financial stress from your shoulders and allows you to concentrate your time and effort on more enjoyable things.

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