Balancing a family budget can be a difficult task for a busy parent. Due to the unpredictable nature of life and family dynamics, you can quickly find yourself struggling to cope with finances where a few months ago everything was fine. If you want to make sure your family’s finances are in top shape, follow these simple check-ups regularly.
Are You Meeting Deadlines?
Think honestly about the last time you made a late or deferred payment, whether it was for a bill, credit card or loan. If you’re having trouble remembering any instances that you’ve had to do so, chances are you’re coping well with your current financial situation. However, if you know there’s been more than a few times recently where you’ve struggled to make the due date, you should reevaluate your finances. Not only do missed or late payments affect your credit rating, but they can also be a strong indicator that you have more debt than you can comfortably handle.
Have You Considered Consolidation?
If you are struggling to meet your repayments, or are sick of trying to keep track of multiple debts, consider consolidating your debts. With a debt consolidation loan, you deal with one creditor, have one single monthly repayment, and are offered a low interest rate. These benefits make consolidation a great option for anyone who wants to regain control over their debts, and start the journey to becoming debt free for good.
How Strong is Your Financial Position?
Assessing the strength of your financial position allows you to gain a greater understanding of how you can improve your family’s finances. If an emergency was to arise in the next 2 weeks, would you have the necessary funds to cover it and still meet your normal expenses? A good guide to seeing how strong you are financially is to have at least 3-6 months of your normal bills and loan repayments saved at all times. This safety net gives you the peace of mind that no matter what happens, you can still look after your family without slipping into debt.
When is the Last Time You Updated Your Budget?
Keeping your budget updated is a key way to ensure that your family’s finances are in the best shape possible. Make sure you change any details such as raises in rates, electricity and water bills, interest rate increases, new fees for the kids’ sporting events, and anything else that could affect your allocated savings. It’s also important to update any increase in income, as it will allow you to make sure the money is being used in the best possible way. Without a structured budget, it’s almost impossible to maximise your savings and maintain the best financial situation for your family.
If you regularly ask yourself these questions, you can be sure that you are on the right track to keeping your family finances healthy. Planning ahead will allow you and your family to enjoy the benefits of great budgeting. Don’t let debt defeat you, be proactive and keep your finances in great shape.
Written by Emma Jane