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Wednesday, October 30, 2019

Habits that New Families Should Acquire to Have Financial Freedom

Do you want to get your family on a better financial footing? This piece by Tim Anderson gives some food for thought on how to do that.



We all yearn for financial freedom and the peace of mind that it brings. It’s the comfort in knowing that no matter what tragedy is about to strike, or an unexpected payment emerges, we’ll be fine. When it comes to understanding finances, we are rarely prepared, so if you and your family are just getting into the habit of managing your funds, and do not wish to end up drowning in debt, here are a few foolproof steps that’ll have your family set to enter financial freedom.


Discuss finances with your family

It is imperative that you and your spouse have to be on the same page when it comes to spending habits, as oftentimes one or both partners may not do well living within their means and this can cause quite a lot of stress in the family. Get into the habit of sitting down as a family, weekly or monthly, and decide what money gets spent where; writing down your expenses helps to keep track of them.

Keep an eye on your credit score

Many families find themselves in debt due to credit cards and taking out loans that they don’t necessarily need. Set up a payment plan and try to stay on top of your bills as credit card debt can be difficult to pay off. Consider consulting a financial adviser on how to implement debt free living in your daily life, they can help you establish a payment plan and determine whether your financial affairs are in order.

Make a realistic budget

If you or a family member have bad money management skills, then budgets are the way to go. Giving each individual a personal spending budget to abide by will help them manage their spending habits. This will ensure that all money is accounted for; if they choose to indulge in a weekly dinner with friends or a spa day, they will have to work it into their budget.

Saving

Yes, it can seem difficult to save, but it’s true what they say, every little bit helps! Stop underestimating the power of saving and start your own savings account. Discover all the areas in which you are spending more than you need to, for instance, food. Get into the habit of meal planning for the week; you’ll be surprised how much you can save by cooking at home instead of eating out. Try to avoid credit cards which can encourage you to spend more than you originally planned and go for cash instead. Saving can be beneficial for two reasons; you’ll be able to afford certain luxuries in the future and ensures you are prepared in case emergencies to pop up at unexpected times that will require you to dip into your savings.


It does take quite a bit of discipline to manage your finances and live within your means, however, it’s never too early to implement good spending habits for you and your family. Achieving financial freedom gets easier the more you practice, you’ll be able to stick to budgets and set goals you can work towards. This will not only better the future for your family, but also make you appreciate what you’ve earned.

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