Here’s Five Financial Tips for Large Families
1 | Examine your finances
Sitting down as a family and figuring out how much money is coming in and going out may help you gauge the state of your family’s finances. A clear picture of your household income and expenses will set you up to manage cashflow better.
2 | Rein in spending
Keeping expenses under control can be tough in a large household. But if you’re spending as much as or more than you’re earning, you might want to consider limiting your family’s discretionary costs by buying only what you can afford. Cutting back and living frugally can help you stay on track.
3 | Set financial goals
Setting financial goals as a family may help you work towards future aspirations instead of simply meeting current expenses. Whether it’s buying a bigger house or going on a dream holiday, having a financial goal may help your family set priorities and stay on track financially.
4 | Keep a budget
Keeping track of spending may help you to better manage your family’s finances. By working with a professional financial adviser or money coach, you could create a budget that factors in not only income and expenses, but also financial obligations. Make use of the MoneySmart Budget Planner if you need somewhere to start.
5 | Build up emergency and retirement funds
Unplanned expenses such as unforeseen medical bills can put a dent in family finances. By growing your emergency fund to cover six months’ worth of expenses, you may be better positioned to handle unexpected events.
While it’s easy to neglect your own financial future when providing for your family, saving for retirement should not take second place. Keep in mind that the earlier you start saving, the better chance you have to grow a sufficient nest egg.
Working with an adviser
Managing finances for a big family need not be a painful exercise. By working alongside a financial adviser to keep track of your spending, and discussing money matters openly, you can succeed. Set financial goals as a family to make handling household finances is a task you can achieve together Make sure you implement these five financial tips for large families.
Or, contact the team at Wealth Planning Partners on 07 5593 0855 to find out if we can assist your family with their household’s financial needs.
https://youtu.be/uo7OzDLGdKc