Family Finance: Are You Doing Enough?

 

Ensuring your family has enough money to do the things they want to do isn’t easy. The purse strings can often be tight, but there are ways you can make your money stretch and save. This is especially the case when you have children to support, who sometimes seem to be life’s biggest drain on the finances. Here are a few hints and tips which can help you best prepare for future financial strain.

 

Consolidate Your Debt

 

Having multiple debts can not only drain your cash, but it can make you worry and stress, leading to a lower quality of life. But if you consolidate your debt with a loan, pay off everyone you owe and then only owe money to one lender life can be far more simple. You will be able to know when your single debit is coming out each month instead of having multiple outgoings to worry about so you should certainly consolidate credit today. If you are in a particularly bad situation with debt try not to let it get you down, there are many government schemes you can make use of to hold off the collectors and even wipe out some debt altogether.

 

Start A College/University Fund At The Earliest Opportunity

 

Start the fund when your child is a baby or in their infancy. This way you can save a minimal amount, like twenty a month, and by the time they go off to higher education you’ll have a decent fund available to draw from and help. Try starting the fund with a few hundred if you can, this way you can use a high interest bank account and potentially build up some extra cash over the years. You may not even need it, your child may get a scholarship or government funding, but having the option there is important and can give you that piece of mind as your child grows.

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Don’t Ignore Your Mortgage

 

By paying the lowest amounts you possible can off your mortgage means you’re actually just paying the interest off. This means you aren’t making any actual house payments. Be careful because although you’ll have more money you will be left owing more further down the line. You need to find a balance between paying off the house and having enough money there to support you through each month.

 

Take The Holiday Of Your Dreams…

 

…By paying for it a few years in advance. Again, small monthly outgoings aren’t as noticeable as a huge lump sum. You can take whatever holiday you want to keep you and your family happy, don’t miss out on culture and memories because you can’t afford it. Just pay it over a longer period of time. Most holiday agents allow this and it means you can go somewhere a bit nicer than you thought.

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Have A Contingency Fund

 

A contingency fund is an emergency stash of cash or bank account which can help with unexpected costs such as car repairs, house repairs or healthcare costs. It can really help and stop you over-burdening yourself, just be sure to top it back up when you have to dip into it.

 

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