Becoming a parent should bring excitement and joy, but if you feel a little bit of panic that is completely normal too! Are you needing some extra money for school fees, or to simply pay an unexpected bill? If you are experiencing these, it might be the time to start thinking about your family budget.
Family budget step 1 – Know what you spend
Before you start, you should ask yourself if you know where your money goes every month or in another word it’s time to sit down and work out a family budget!
Getting started is always the hardest, but definitely the most important step! In order to create a budget that is effective, you need to account of your expenses very accurately! If you are not sure where to start, you can buy yourself a notebook and carry it with you, that case you can write down every dollar you spend. Do not exclude any expenses, even a $3 parking fee or a $2 cup of coffee you get you need to record everything.
If you still unsure where to start, there are also many online tools and living cost calculators you can use to estimate what your living expenses would look like!
Family Budget step 2 – Set goals
Without a concrete reason, many of us may find it difficult to stick to our budget! So setting some goals for your money is very important. A goal can be something that would make you feel great financially, or a shorter term goal could be paying off your line of credit.
To create an effective family budget you will need to draw some hard lines between what you and your family actually need. You might not know, getting a meal in a restaurant is often a 3-4 times the cost of making it yourself! If you can develop the habit of cooking at home you will be amazed how much you can actually save!
Even clothes can be a judgement call sometimes. Most parents want to buy the best for their children which is understandable, but you can also consider other alternatives such as getting some second hand clothes for kids which is great for the environment though reuse, take care and pass down items to the others.
Brands like Junico Kids contribute to the ‘reuse’ movement to reduce waste, If you are looking for sustainable shopping option and interested in getting some preloved baby and kids’ clothing you can visit the Junico Kids website.
Family budget step 3 – Monitor your progress
Your budget doesn’t end after you set your goals. You need to review your budget every month to make sure everything is on track! Making adjustments is a normal part of the budgeting process, especially when you underestimated some costs at the beginning. But don’t forget to stay motivated by celebrating any small successes!