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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.
3.
Switch to Cash On Delivery
Instead
of paying with credit or debit cards for online shopping, try the cash on
delivery payment option. This will allow you to have a better handle on how
much money you are shelling out, and help you avoid trouble from paying for
delayed or canceled shipments.
4.
Buy Non-Perishables In Bulk
Purchasing
cleaning supplies, dry goods, pet food, and even toiletries in bulk has several
advantages. It limits your trips to the store (and reduces expenses for
transportation), reduces waste from packaging, and allows you to better divide
up supplies for everyday use. It also gives you a little extra for emergencies
and other contingencies such as household guests.
5.
Cook in Bulk, Divide Over the Week
This is a
great kitchen hack especially for very busy households wherein the groceries
are done once a week or even less. Buy food items that can be cooked at the
beginning of the week (ground meats, sauces, etc.), then divide these items to
be repurposed over several days. For instance, a kilo or two of ground meat can
be sautéed on Sunday and divided to make patties for lunches, pasta sauces for
dinners, and other meal combinations.
6.
Schedule Trips and Errands in the
Same Areas
Paying
for gas or commuting fare can slowly add up to put a dent in your budget,
especially if you live and work in different locations. To reduce this,
schedule your trips and appointments in the same places. For instance, if you
must head to one city for a client appointment, try to carry out all other errands and
trips that can be done in the same area such as visits to government offices or
bills payments. This will reduce the number of times you need to head out from
home to different places, and help you conserve your time and energy.
7.
Plug Up Leaks, Pronto
Calling a
plumber may seem counterintuitive due to the expense. However, making sure that
leaks are fixed immediately will save you additional costs in your water bill.
The same goes for appliances that may be using up more energy due to defects or
wear and tear. The short-term expense of repair pays itself back through
long-term savings.
There you go, moms! With these tips, you
can sleep soundly at night knowing that the family gets all they need without
compromising your budget.
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