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| Budgeting for the family is never easy (photo credit: moneykey.com) |
One of the most nerve-wracking things about adulting, especially with a family, is budgeting. Although it would seem logical to spend as little as possible of each paycheck in order to have larger savings, financial advisors suggest another mantra: save before spending. This means that one’s budget for daily expenses is what is left over after allocating for savings and other investments. We have some budgeting hacks here for moms (and dads!) to help get that little extra moolah and banish those petsa de peligro blues.
1.
Have separate savings accounts for
utilities, rent and housing mortgages.
It is all
too tempting to draw upon a savings account for everyday expenses, even if you
already have decided to set aside a certain amount for your housing and home
needs. To stop this practice and avoid trouble with catching up with utilities,
rents, and mortgages, have another bank account separate from your
payroll/joint checking/personal savings account, wherein you will set aside a
set amount of money each month for your monthly payments. Automatic transfers
also help make this process easier. You can even extend this practice for other
monthly payments such as investments, educational funds, and plans, or health
cards.
2.
Hold the Credit Card!
Cashless
shopping is a double-edged sword: it is handy and convenient, but also an easy
way to lose track of one’s expenses. This can lead to some very unpleasant
surprises such as finding your credit card maxed out at a crucial time, or
being presented with a staggering statement. To avoid this, we recommend
keeping the credit card on hand only for emergencies such as hospital
confinements, or transactions requiring credit cards such as travel. A
cash-only budget will suffice for the daily, weekly, or even monthly expenses.
