5 Steps to Taking Control of Your Family Finances in 2020
When we have a family and it starts to grow so can our financial issues. With Christmas just gone you might find yourself less financially stable as usual and you may be thinking of how to get better control of your finances this year.
Every family needs a plan and strategy for their finances in order to stay on top of things and comfortable averting any major money problems. This is much easier than done so here are 5 steps to taking control of your family finances in 2020.
- Nominate a Banker
Photo by Kelly Sikkema on Unsplash
This means to choose just one person to be in control of the family finances. Why? Because when two or more people are involved it can become messy very quickly. Having more than one person involved requires constant communication and can irritate everyone involved.
The person nominated as a banker for the family should set up a simple spreadsheet that includes all the bank accounts and monitors all the incoming and outgoings. You should then have planned meetings with your partner once or twice a month to specifically discuss the finances.
- Contol or Remove Debt
Photo by Jp Valery on Unsplash
Debt lingers over a family like a dark cloud following us. If you do anything with your finances in 2020 it should be to take control or remove any debts you have. Debts cause all sorts of negative emotions, stress, and anxieties that our family just doesn’t need. Life is hard enough!
If you have debts that you can pay off with savings then you should do this right away. Having debt lingering incurs interest which loses you more money over time. If you can’t pay off your debt right now and you have various debts across different accounts you should consider Evolution Money’s homeowner loans to help consolidate those debts.
Consolidating your debts allows you to avoid multiple high-interest charges being occurred and exchange it for a low-interest debt that can be paid off over a longer period of time.
- Create a Family Budget
Photo by Ann Danilina on Unsplash
Without a well functioning and clear family budget, it’s easy to lose track of spending. Using the spreadsheets you have created to track the incomes and outgoings, you can set up a budget that allows you to see how much you should spend throughout the month.
You can break the budget down into categories including food, bills, mortgage/rent, debt payments and so on. Once you have your necessities you will see how much disposable income you have to enjoy. This will help you enjoy things without worrying about money.
- Plan Your Food
Photo by Stefan Vladimirov on Unsplash
Meal plans help save time and money if organized correctly. It helps to choose your favorite meals for the week and then buy all the ingredients required to make them. This will help reduce any wastage or unnecessary purchases at the supermarket.
To help save more money, try doubling up your evening meals so that the leftovers can be served as lunch for the following day.
- Create a Bill System
Photo by Sharon McCutcheon on Unsplash
Monthly bills can be a nightmare to manage, it’s easy to lose control and for costs to spiral. Instead, create a bills system that helps you track what’s going out and on what dates so you can better manage bills. Create reminders and calendar alerts for each bill so you know what’s going out when and to ensure you have the money in your account ready to go.
Evaluate all your current bills, remove any that are not necessary and change any that can be found for cheaper.
**Disclaimer ; this is a collaborative post