Saving money has always been a struggle for parents. With so many things that they have to worry about financially, it’s hard to set aside some savings. A regular household would have at least three bills to pay every month: water, electricity, and rent. And that’s just the bare minimum. If your family has a car, then you are also paying for fuel consumption, insurance, and maybe even amortization. Owning a house means paying your mortgage, and renting a place means diligently paying your landlord every month. If you’ve got kids, oh boy, the expenses keep going up. You pay for education, health insurance, food, clothes, and everything. With all these expenses going on, every cynical parent has the right to think it’s impossible to save when you have a family to sustain.
But don’t worry, being so occupied with running a household isn’t enough excuse to have 0 savings. Here are 5 tips for parents to save money in 2018:
Revisit your budget
Allot at least 10% of your income as your savings. Whenever you get your paycheck, divide your net wage and allocate them properly according to your household expenses. A good way to make sure you are saving money is to separate it first. Don’t save what’s left of your money. Save first, then spend the rest. This is called prioritizing. This allows you to keep a fixed savings amount, and helps you adjust your other needs according to what you can afford.
Open a savings account
It’s very easy nowadays to open a new bank account. To make sure that you don’t spend your savings unnecessarily, open a savings account specifically just for it. Do not constantly check its balance, and if you can, do not enroll it to your online account. This helps you avoid making purchases on it or transferring money out of it. Much better, open a passbook account for it so you’re sure it doesn’t go anywhere once it’s funded.
Get an insurance
Life insurance nowadays have evolved to include mutual funds and investments. This means whatever you’re putting in will earn dividends in the future. Note that investing through insurance is a long term plan so don’t expect your gains to grow immediately. When your insurance policy matures, you get a lump sum that you can use for a lot of things. You can use it to fund your children’s education, buy a new car, get a new house, and many more. You can also reinvest it to have another long term savings plan.
Limit your spending
Saving money is all about spending below your means. No matter how much money you earn from working, if your expenses outweigh your net income, then you’re just burying yourself in debt. There are many ways to reduce your spending without drastically changing your lifestyle. Decluttering your space and getting rid of items you don’t need or don’t use anymore is a great way to start. You can sell these items or give them away, the point is to clean your house so it looks inviting. Spending time at home reduces unnecessary spending!
Another thing you can do is to be smart when grocery shopping. By in bulk so you don’t have to go back and forth to the grocery. The more you do, the more chances of you getting something from the shelves that you don’t need. If you can, stay away from your credit card as much as possible. There are so many way to save money, evaluate your expenses and cut back on things you’re spending excessively for.
Find other sources of income
If you’ve got a talent you can monetize, you’re very welcome to make it an additional source of income. Do you love baking? Start offering your sweet goodies to friends and neighbors. Are you good at writing? There are tons of online writing jobs waiting for you. Are you a stay at home parent? Why not open an online shop and learn about drop-shipping? There are so many opportunities to save money. If you can’t reduce your expenses, add your income streams.
How are you planning to save money in 2018? Do you have any tips and strategies to share? Do leave a comment below.
*This is a collaborative post