Saving money. The concept sounds simple enough — pay all of your bills on time, put some away for spending and store the rest in an emergency or savings account. It’s feels logical and the right thing to do, especially when starting out as a young family. Yet for many, saving money is a far-off wish. With unexpected payments and cost increases in things like medical treatment and groceries, it seems paychecks don’t go as far as they used to. Even when folks receive a raise it doesn’t do enough to stem the outflow of money from their bank account.
Here’s the good news — there are some simple things young families can do to save money. Heck, if the Duggars of 19 Kids and Counting can do it, so can families with one or two children. Below are five common sense things you can do in order to save some money for the future.
Really take a look at your monthly budget. How much is going to credit cards, car payments and other installment packages? Bet that it’s at least a quarter to a third of your paycheck. This isn’t necessary. From this moment on, you and your young family need to take a pledge to use cash for every purchase. And we’re not talking about using your debit card instead of credit cards, for excessive use of the debit card for payments can lead to an overdraft of your bank account. We’re talking withdrawing the cash needed for groceries and general spending and placing them in envelopes. Spend it all, and you need to wait until the next paycheck to replenish.
We have some news for your. Put on an item of new clothing or drive out of the dealership lot with a new vehicle and they become used very quickly. And here’s some more news, when you sell your car or give away your clothes someone else buys them used. Yes, the sound of new can send a surge of accomplishment through your brain, but it ultimately costs you more in the end. The solution to this is to buy used from the start. Purchase a certified pre-owned car that’s a few years old or head over to a thrift or consignment store to purchase clothes. Will they have the most modern styles and amenities? No, however, the most modern becomes the past very quickly these days.
Buy What you Need, Not What You Want
The biggest issue in personal finance these days is people who spend money for what they want instead of what they need. Case in point is the aforementioned car. They need a simple vehicle to get them and their young family around town and end up purchasing a brand new minivan with all of the extras. This leads them to a large car payment that hangs over them for several years. Groceries are another example of want vs. need. Instead of purchasing the basics, most shoppers are enticed by sales of items that are unneeded as well as unhealthy for them. Best to go in with a shopping list and the said money in an envelope when shopping for food.