As your family grows, your finances are going to need to stretch further. You might have everything you need to make them happy and comfortable, but you cannot stop saving money each month. Not only is it nice to continue saving for the adventures you have ahead of you, it doesn’t hurt to have emergency funds in case anything happens. Here are a few areas where you can cut down on your expenses to have money for the things that really matter.
Things like water, electricity, and broadband are not negotiable, but that doesn’t mean they have to cost the earth. The easiest way to save money on these expenses every month is to go green. Start by switching to energy efficient LED bulbs, unplugging all appliances you’re not using, and insulating your home so you don’t need to turn up your thermostat as much. Doing these small things can reduce your energy consumption, saving you money on your bills each month and helping the environment. Going paperless with your bills can also save you money. Eventually, you might also want to look at green home improvements, such as solar panels and double glazed windows.
Cars break down fairly regularly, which is not good for your savings. However, if your car is experiencing more frequent breakdowns, it’s in your best interests to buy a new one altogether. While you probably didn’t factor in having to fork over the funds for a new vehicle, this doesn’t have to be as expensive as you fear. Obviously, the cheapest way to afford a new car is to buy second hand; you can get amazing deals on a Toyota Yaris direct from a seller, or on a Ford Kuga on Autotrader. If you would prefer to get a new car, then shop around for a good interest rate on car loan; this way, you get a new mode of transport, and you protect your hard-earned savings. As an added bonus; if you keep up with the repayments, this will help you build good credit.
Unexpected expenses, such as emergency home repairs, can blow the biggest dent in your savings and leave you back to where you were before you began putting money aside. However, you can take away some of the sting by having some money management plans in place.
Make a list of common seasonal expenses, like property taxes, insurance, gifts, car repairs, winterization, or vision and dental bills. Then look at your calendar for the past year, along with bank and credit card statements, to see what irregular expenses you paid for with credit. Once you have these variables, you can calculate how much extra money you can afford to set aside in a different account. The next time you need to dip into your savings for a rainy day, you can be pleasantly surprised when you rediscover this emergency account and see how much you have saved. Save more money by doing your own repairs wherever you can.
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