Did you know that one of the top reasons for divorce is money problems? And even if you are not married but you are a mom with kids, money troubles are always on your mind. Thankfully, I’ll share with you three ways to conquer financial worries. I always make a distinction between financial worries before I had kids and after I had kids. Once you have kids, your money worries go through the roof. If you thought you have problems before having kids, they multiply after you have them. Why you ask? Because honestly, kids are expensive and having kids is expensive. You can all of the love in your heart for your kid, but if you can’t feed him, clothe him, shelter him then you are doing a pretty crappy job as a parent. So here are three easy ways to help you conquer these money worries we all have as parents:
1. Make a Budget – I know, I know you know this already. But have you actually done it, probably not. You need to sit down and write down the income that comes into your household, list your expenses and then subtract your expenses from your monthly income to see your reality. Once you do this, you can go back and review the expenses that you can control or live without. For example, cable bill, cut it and get Netflix for $8 a month. Food is another big one, see how much you are spending eating out, on lunches and set a budget for your food and stick with it – prepare your lunches and cook your meals at home.
2. Set up an Emergency Fund – After you finalize your budget, then work on saving money and putting it in an emergency fund. Now, contrary to current wisdom, I won’t advise you to save up like three months worth of your income because really this is maybe too much and you may not need it. I would say build it up to a $1,000 and that can cover any unplanned expense like a broken A/C, flat tire, your kid’s dental procedure, whatever, the point is to have a decent amount that you can tap into to pay for these expenses that will happen.
3. SAVE and write your financial goals – after you make your budget and you have saved $1,000 for your emergency fund, then you need to figure out a monthly amount that will go into a savings account. What that amount should be is up to you and your financial goals. But you need to save an amount a month, start with $50 and then increase it. This is to build your savings because there are things you want to do like go on a vacation, buy a new car, save for your kids education, fix your kitchen, whatever finacial goals are, you first need to save it, so you don’t have to go into debt.
Review these top 3 every six months – Because financial situations change, you should review 1 through 3 every six months and adjust them as you feel necessary. Why? because you might make more money or less, you may be able to save more money to fulfill a specific financial goal like redoing the kitchen. Financial worries can be controlled if you have the right plan in place, so by following these simple steps you will be able to conquer those money worries and have a happier life, I guarantee it!