When it comes to any household size, there’s nothing wrong with cutting corners and staying frugal. Whether it’s a household of one or a family of four, you can expect that finances and budgeting will constantly need to be looked into. Especially when it comes to having a family, living can get expensive, and this doesn’t even include paying for your child’s college education. While the cost of living is getting more expensive year by year, it’s important for all households regardless of size to be open to ways to be more frugal.
Always expect the unexpected
Whether you’re worried about dealing with an injury at work, or some unexpected event such as maintenance costs like your house or car, you’re best off having an emergency fund. An emergency fund will allow you and your family to be financially stable, even during the toughest of times. While stability is never guaranteed, your household (regardless of the size) will be far better off having an emergency fund. This emergency fund should be three to six months’ worth of the household income. While you’re not expected to just put your entire paycheck back for your emergency fund, you should save around 15% to 25% of your paycheck each month for this emergency fund.
Know your options
In general, you should just always be aware of your options. Such as your options on where you can save money, knowing your options on how you can make additional money (such as a side hustle), but also options such as knowing about small personal loans. Overall, your household, specifically the financial providers for the household should be aware of what the options are for saving money and helping out in any financial situation the household could potentially deal with.
Keep celebrations simple
This may be tough, especially if you have kids, but it’s best to try to make the holidays and other celebrations as simple as possible. If you’re worried about saving money, then you should be aware of the fact that celebrations are all about making unforgettable memories with your loved ones, not spending money or getting into debt. This can even include a wedding if you’re about to get married. You don’t need to do anything crazy or elaborate if you’re wanting to have a memorable celebration.
Think about your lifestyle
There are some aspects of life that can go unnoticed because they seem to be so normal. This is more apparent when it comes to spending. While the example is generic and overdone, if you’re someone that buys their coffee every day then you should get an idea of how much you’re spending a month and per week. Just think about what your spending habits are, and take a look into the rest of the spending habits your household has. You may be shocked at where you can save money.
Think about your home
If you’re a homeowner, then you should definitely take a look at your house and you could be throwing away money. Owning a home can get expensive from the monthly mortgage payments to the repairs. But there are fortunately ways to bring some of the costs down, especially for utility bills. You can look into installing a smart thermostat, adding more insulation into your home, and even doing something as simple as covering your doors so the cold can be clocked out. Even downsizing your home can make a huge difference as well.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)