Family expenses can easily pile up until you suddenly find yourself unable to control your spending. Yes, it’s easy to give in to the temptation of buying a new baby gear, redecorating the nursery, or even hoarding on supplies. So if your New Year’s resolution includes spending your money wisely this year, then you can continue reading.
Keeping track of where all your money is going can be quite a challenge, and sometimes the most difficult part of saving is getting started with it. It’s tough considering all the bills and baby stuff, but it can be done. After all, it’s important to build a rainy day fund. And you can start doing that with these simple steps:
1. Record your expenses.
Your first step: figure out how much you spend. Having an online sheet or a notebook that itemizes all your expenses for the month helps you see where a huge chunk of your money goes. Data and information you got from this can then help you decide whether your spending habits need to change or if there are any expenses you should cut. You can also use apps like Mint and Spending Tracker to help you record your expenses.
2. Create a proper budget.
By really analyzing your cash flow, you’ll be surprised by how much money you can actually save. Your budget should include a breakdown of the important monthly expenses (housing/rental cost, utilities, etc), discretionary spending (here you decide if it’s a need or want), and of course your savings for the month (about 20% of your income). Plan accordingly so you can stick to your budget and avoid overspending.
Keeping track of where all your money is going can be quite a challenge, and sometimes the most difficult part of saving is getting started with it. But it can be done, mama!3. Cut unnecessary spending.
Are you still paying a subscription or membership on something you no longer use? Maybe it’s time to unsubscribe, especially if it’s an automatic renewal. Do you eat out every weekend? What about doing it only once a month and enjoying more homemade meals? If you are serious about saving each month, you need to cut back on unnecessary expenses.
4. Set up a separate savings account.
Most of us have easy access to our bank accounts now. By creating a separate account where you can put your savings, you resist the temptation of using that fund for everyday expenses. Here’s another tip: schedule automatic transfers to this savings account so that a portion of your paycheck goes directly to your savings each month.
5. The best time to start saving is now.
With already a little one in the equation, it’s all the more important now to have an emergency fund that gives you a sense of security should unexpected events happen. You can start small with your savings each month and build from there. But you have to start doing it as soon as possible so you are prepared for all life will throw at you and you can achieve your short- and long-term goals (hello, investments!) sooner.
