Having a young family can be expensive. As a mother of three, I’m all too aware of the costs associated with raising kids, as well as the unexpected expenses they seem to bring with them! Even planning your finances down to the penny can only work if you’re able to maintain the status quo. Looking after your finances when you have a family involves a lot more than earning your money and working to a budget.
These are my top tips for looking after your finances when you have a family:
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Protect your income
With very few employers issuing anything more than statutory sick pay, having time off work for illness or injury can mean your finances take a huge hit. Income protection pays out a percentage of your salary if you get signed off work by a doctor. The amount you get depends on the cover you take out, but any protection is better than none.
Build an emergency fund
Everybody who talks about personal finance bangs on about emergency funds, but there’s a good reason for that! Ever since I’ve been able to create an emergency fund, I’ve felt ant worries around money disappear. I’m a freelancer, so sometimes I have a gap in my finances. I go through quiet periods, and on occasion, clients pay late. Having an emergency fun has allowed me to stay out of debt.
I understand an emergency fun can feel like a luxury for some, but even transferring £10 a month in to another account can soon add up. After all, it could be years before you have to dip into it.
Keep your spending low
A weekly food shop can quickly wipe out your cash, as can many other household expenses. The best way to keep your spending low is to shop around. I’m not one to visit several different shops to get the absolute lowest price of everything (I value my time too much), but I do regularly compare prices and check I’m shopping at places where my trolley is cheapest. I also like to keep an eye out for coupons (but only use them on things I’d normally buy).
For more expensive things, I make sure I shop around. Often you can settle on the cheapest place for an item, but voucher codes can bring it to an even lower price on another site. Be sure to Google voucher codes for both the shop and the specific item to get the best deal.
Also save money on entertainment. Visit free events put on by local businesses, or take your kids to the park. Try find free options for gaming, for example a free online chess game, instead of buying video games.
Don’t invest without research
I’ve seen a lot of chat on TikTok and Instagram about investing in various volatile markets. Lots of these investments are advertised as harmless fun that garners a big pay off. These are usually accompanied by a screen recording of recent cash withdrawals from these apps. While the influencer might be telling you the truth about their good fortune, they often forget to mention money can be lost.
Digital investments are volatile, and while people can make money, they can lose it just as easily. It’s a good idea to do your research, and if you have a sizable sum of money to invest, pay someone for professional advice.
Have a few income streams
Making money outside of your main job is always a great way to get a little extra. Often known as ‘side hustles’, these earnings alongside your income can boost your finances and help you save for the future.
My favourite ways to earn money are to complete surveys, take part in bigger market research campaigns, and sell things I no longer want. If you’ve got a hobby that involves making things, you could always sell your wares too. Craft businesses tend to yield a low profit when you look into production time and materials, but if it’s something you would have made anyway, it might be worth making a bit of extra cash from selling it!
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