Because of all the uncertainty around at the moment many people should start taking stock of what they have. Just in case. I think in this current economic climate, nobody has a safe job. Every industry seems to be affected in one way or another.
So, where do you start? Set some time aside to sit down and go through your family finances with a fine toothcomb. What could you do without if it came to the crunch? There are many places where you can download family budget planners which may help you sort out your family bills. We tend to forget about things like magazine subscriptions and monthly payments to charities etc. Make a separate list of such items and place them in order of priority. Then if things get any worse you know straight away what can be cancelled first. Alternatively, you could always start right now and cancel those that are not a necessity.
If you can, you should be building up an emergency fund to get you through any lean times. If you decide to cancel subscriptions as mentioned above, put this money away into a separate account while you can still afford to do so. This can be the start of your emergency fund. This should not be touched unless it is an absolute emergency. You should be aiming to have at least 3 months expenses put aside just in case you or your partner become unemployed.
Next, think about all the little luxuries that you and your family enjoy and consider giving them up, at least until you have managed to save about 3 months money. Things like that cup of coffee you have on the way to work or every time you go shopping. The sweets you buy for the kids when they are out with you. Don't eat out unless it is a really special occasion. You can make a special meal at home and save quite a bit. You just need to get out of the habit. It may take a little time to readjust but a little bit of sacrifice now could save a lot of heartache later on.
At the end of each week, work out how much you have saved by not indulging in those little luxuries and put this money into your emergency fund. It may help to put your savings into a separate purse each day then once a week pay it in to your emergency fund at the bank.
Don't go planning your summer holidays abroad until you have built up your emergency fund and you know you can afford it. If you need to go somewhere, maybe think of a couple of trips you could do in the local vicinity without costing too much money. Take the kids to the park and enjoy a picnic. There are lots of museums around that are free or they may do a reduced rate family ticket. We tend to take for granted our local area a large amount of the time but in most areas there are plenty of walks and lovely gardens and architecture to look at. Swimming pools and leisure centres quite often have special offers on during the school holidays. Check out your local tourist information office for more ideas.
Another important step you can take to control your family finances is to look at your food bills. Cut out money-off coupons from newspapers, leaflets and magazines. Also, do away with the little luxuries that you don't need. And after every shopping trip work out roughly what you have saved and put it away. You will be better off stocking up on canned foods and dried foods that have a longer shelf life and can be stored, so at least if things got really bad, you have a supply of food enabling you to cut down on your weekly food bills when you need to. Get into the habit of buying a couple of extra items each week to put away, but don't forget to check the sell by dates!
A lot of what we buy is out of habit. Think about switching brands, supermarket own brands can often taste the same as more expensive brands. At least give them a try! Always keep an eye out for BOGOF offers that could be stored away. I find it is best to go shopping without the kids in tow whenever possible. They only add more to your basket which you can't really afford. You will also get your shopping done far quicker.
Think twice before buying any unnecessary major purchases. Before you buy anything you should be asking yourself, do I really need this item at this time? If it is something that you definitely need, try to pay for it without dipping into your emergency fund if at all possible.
This article is not meant to panic you but to make you stop and think before you reach for your purse or credit card. Don't bury your head in the sand, sort out your family finances now before the choices are taken out of your hand.
So, where do you start? Set some time aside to sit down and go through your family finances with a fine toothcomb. What could you do without if it came to the crunch? There are many places where you can download family budget planners which may help you sort out your family bills. We tend to forget about things like magazine subscriptions and monthly payments to charities etc. Make a separate list of such items and place them in order of priority. Then if things get any worse you know straight away what can be cancelled first. Alternatively, you could always start right now and cancel those that are not a necessity.
If you can, you should be building up an emergency fund to get you through any lean times. If you decide to cancel subscriptions as mentioned above, put this money away into a separate account while you can still afford to do so. This can be the start of your emergency fund. This should not be touched unless it is an absolute emergency. You should be aiming to have at least 3 months expenses put aside just in case you or your partner become unemployed.
Next, think about all the little luxuries that you and your family enjoy and consider giving them up, at least until you have managed to save about 3 months money. Things like that cup of coffee you have on the way to work or every time you go shopping. The sweets you buy for the kids when they are out with you. Don't eat out unless it is a really special occasion. You can make a special meal at home and save quite a bit. You just need to get out of the habit. It may take a little time to readjust but a little bit of sacrifice now could save a lot of heartache later on.
At the end of each week, work out how much you have saved by not indulging in those little luxuries and put this money into your emergency fund. It may help to put your savings into a separate purse each day then once a week pay it in to your emergency fund at the bank.
Don't go planning your summer holidays abroad until you have built up your emergency fund and you know you can afford it. If you need to go somewhere, maybe think of a couple of trips you could do in the local vicinity without costing too much money. Take the kids to the park and enjoy a picnic. There are lots of museums around that are free or they may do a reduced rate family ticket. We tend to take for granted our local area a large amount of the time but in most areas there are plenty of walks and lovely gardens and architecture to look at. Swimming pools and leisure centres quite often have special offers on during the school holidays. Check out your local tourist information office for more ideas.
Another important step you can take to control your family finances is to look at your food bills. Cut out money-off coupons from newspapers, leaflets and magazines. Also, do away with the little luxuries that you don't need. And after every shopping trip work out roughly what you have saved and put it away. You will be better off stocking up on canned foods and dried foods that have a longer shelf life and can be stored, so at least if things got really bad, you have a supply of food enabling you to cut down on your weekly food bills when you need to. Get into the habit of buying a couple of extra items each week to put away, but don't forget to check the sell by dates!
A lot of what we buy is out of habit. Think about switching brands, supermarket own brands can often taste the same as more expensive brands. At least give them a try! Always keep an eye out for BOGOF offers that could be stored away. I find it is best to go shopping without the kids in tow whenever possible. They only add more to your basket which you can't really afford. You will also get your shopping done far quicker.
Think twice before buying any unnecessary major purchases. Before you buy anything you should be asking yourself, do I really need this item at this time? If it is something that you definitely need, try to pay for it without dipping into your emergency fund if at all possible.
This article is not meant to panic you but to make you stop and think before you reach for your purse or credit card. Don't bury your head in the sand, sort out your family finances now before the choices are taken out of your hand.
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