A big family is a dream for many people. We link this dream to having fun and sharing our joy with the loved ones, and it’s a great aspiration to have! Yet, sometimes when you start your own family, adjusting to the new situation, especially financially, might be a bit hard. There is always a way to make your life easier when it comes to this.
Here are some easy steps on how you can plan a budget for your family life.
Step 1: Write down your income sources
You don’t have to use a difficult system or hire a specialist. You already have everything to start planning your family budget right now.
First of all, try Google sheets. Its clear structure and functions allow you to calculate everything at once! By the way, you can use any alternative spreadsheets - there are plenty of free resources on the Internet, Google sheets are just an option.
Here’s a suggestion of how it may look:
Step 2: Plan your expenses, big and small ones
Now that you see the total amount of funds you have, write down everything you might want to spend your money on. Try to include everything you normally buy throughout a week or a month - not only the basic but also something you’d urgently need.
You can calculate the amount you want to spend for the whole month or week by week.
Step 3: calculate the difference
Once you see how much you spend and how much you have left, you can adjust your expenses accordingly. Are you a bit tight on money this month? Not a problem, let’s see what you can cut out from the list.
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Make sure you cut your big expenses, not short ones. Small things can be easily cut out from the budget, but their lack might make your life considerably less comfortable.
For example, let's say that you can foresee how often you'll be using public transport to travel to work. You might be able to spend less on your urban pass by finding less expensive options, like weekly pass instead of a monthly one. It's all about planning.
Step 4: save up and make your money work for you
Right after you get your salary or any payment that makes up your income, you might want to put some money aside.
Regardless of your plans, even if you don’t want to make a big purchase within the next few months or years, having extra funds could prove to be useful for a rainy day. Most people prefer to save 10-20% of their income and put them into their savings account in a bank.
Longterm planning, when it comes to finances, is not possible without investments. Make sure to take a part of your savings and find a suitable way to make them bring you passive income. Many people consider buying stocks and bonds, but you can also consider Forex trading as a smart way to get invest.