Family Funds – 5 Personal Finance Tips That Will Make Life Easier For Your Family

Whether you’re trying to get out of debt, saving for a big purchase like your first home, or you simply earn too little to maintain the lifestyle you desire, you’ll need to get control of your finances if you want to meet your objectives. Below, we discuss several personal finance tips that will make life easier for you and your family. 

  1. Get the Insurance You Need

These days, many employers only offer medical insurance and nothing more. This doesn’t mean you don’t still need to visit the dentist or get glasses regularly, though, and these things can be pricey. 

If your employer doesn’t offer vision or dental insurance as part of your benefits package, you should acquire discount plans on your own to defray the cost of maintaining optimal wellness. Go online and search for “reduced dental costs” or “how to save money on dental” to find a discount plan that’s right for you. 

  1. Check Your Interest Rates

The interest rates on your lines of credit are the key factors if your goal is to be financially healthy. For example, the credit card bill you should pay down first is the one with the highest interest rate. The savings account you should open is the one that pays you the highest interest rate. As you can see, you must know the interest rates you’re paying, so you can decide where to focus your efforts first. 

  1. Create a Budget

The starting point for every other financial objective in your life is a budget. You can’t begin to save or get out of debt until you know exactly how much money you have coming in and where it goes once it hits your bank account. Most people fail to track their spending, and they have no idea just how much money they actually spend. 

Creating a budget lets you see your entire financial profile at a glance, so you can identify areas to cut back on to save money and pay off your debt. 

  1. Only Pay with Cash

Paying for everything with cash will help break you out of the overspending habit. The idea here is, if you can’t afford to pay for it with cash, you don’t need it. We know this sounds scary, but once you get used to the idea, you’ll find that you spend far less than you did when you were using credit cards. Life becomes much less complicated without those unnecessary expenditures and the pesky bills they produce. 

  1. Allocate 20% to Savings and 30% to Fun

Budgeting is never fun, but if you do it the right way, you can splurge and save at the same time. Every payday, put 20% of your net pay into a savings account that’s only used for emergencies. Next, allocate 30% for lifestyle spending. We know these numbers seem a bit high, but the next time your car breaks down and you have the funds in your savings account to fix it, you’ll be glad you followed this tip. Furthermore, if you know there’s money for going to the movies or getting your nails done, you’re less likely to overspend in this area. So, that 30% likely won’t be used in full. 

There are a million and one things you can do to maintain good financial health. From making sure you’ve got the insurance coverage you need to allocating money for savings and fun, the tips above give you a starting point to begin making the changes necessary to reach your financial goals.

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