Tips to get you on the road to good money management
You want a family holiday in the Whitsundays - your partner wants a state-of-the-art barbeque. But the credit card is maxed out, and the savings account is limping along.
Here's where good communication, a good budget, and maybe a bit of compromise comes in! Managing your money takes some planning, but once accomplished - you'll often find other things falling into place.
Putting some thought in managing your money can lead to:
• More time for your family
• Less stress
• A more organised household
• Debt reduction
• Clearer goals
• Being able to purchase things that used to be out of reach
Sound worth it? Here are the best tips to get you on the road to good money management.
Budget right!
Let's face it - budgets can be boring to write up.The good news is, that filling out and sticking to a budget can lead to being able to treat your family to an exciting holiday at the end of the year!
Get started
Write down all of the things that you would most like to achieve with your money. Compare lists of goals with your partner. Without judging each other's goals, discuss them and remember that you may need to compromise. You can download a ready-made budget planner - it will even do the calculations for you!
EB member, Lindylou (Lindy) relaxes with her partner over a cuppa while they finetune the budget, "My husband and I recently did our budget to find out whether there was any places we could save money. We listed all of our expenses annually from highest to lowest. Then we sat down with a cup of tea or three and brainstormed how to save money on each item."
If the thought of tackling a budget makes you throw up your hands in despair, or if you feel that you are drowning in debt - there is help at hand. A list of financial counsellors who can provide a free, discreet service, can be found here.
Eat well
What's for dinner tomorrow night? Don't know? Two words - 'Meal Planning'. Planning out the family meals for the week ahead, or better still, the fortnight ahead, can mean that you only buy what you need in the groceries. You can save yourself from having to run to the shops in the middle of the week. You save money by sticking to your list, and not filling your trolley with impulse buys.
EB member, ~Calli~ (Calli) finds that meal planning has many benefits: "I used to buy things with no real idea of what I was going to do with it. Now I have my meal plan for the fortnight, I know exactly what and how much to buy. The dinnertime stress is reduced, as I am more prepared. I am even finding myself getting organised earlier in the day, I am keen to look at my list of meals to see what I feel like and decide! It's too easy, no more getting to late afternoon and not being able to decide what I can cook".
If you find yourself giving in to too many impulse buys, buying your groceries over the internet may work for you. Planning ahead can also give you time to plan nutritious, varied meals. Processed foods cost more, and are often high in fat and/or sugar. Buy fruit in season - for example, oranges and apples are generally plentiful, and therefore cheaper, in the winter months. Try the Essential Baby Recipes forum for some great budget meal ideas from our members.
Save your energy
How do you heat or cool your house? Which appliances do you choose? You can make simple changes to enable your family to use less energy, and to save money. Your family can turn off all lights and appliances that are not being used, load washing machines and dishwashers to capacity before using, have quick showers, and limit the amount of times that the refrigerator is opened.
A water tank, solar panels, low-flow shower heads will initially cost money, but will save money in the longer term. The emissions from a gas-powered car are kinder on the environment, as well as costing far less to run. Choose appliances with the highest 'star rating'. If buying a new washing machine, remember that front loader washing machines use less water and use less energy than the top loader models.
Turn off the TV on at least a couple of afternoons/nights per week, and get the family involved in some outdoor fun, indoor games, craft or reading. Take a look at http://www.choice.com/ for full details on how you can 'Save the earth and your money'
Household items and toy purchases
Buy smartly with expensive household items such as a new lounge - it's better to buy good quality. An item that will survive the wear and tear of family life may cost more, but won't need to be replaced as soon as an item of inferior quality. Look for long warranty periods, hardwearing fabrics, and items that won't scratch or stain easily.
With kids' toys - the better buys are the solid, quality toys that will last, especially when buying the classic items such as dolls houses and train sets. Never buy without looking around. This can be done at no cost over the internet. For baby, children's and parenting-related items, join the Trading Forum.
Bulk up!
Bulk buys can be great money savers. Things such as tissues, toilet paper, washing powder, detergent, shampoo can often be bought as bulk purchases. You could buy in bulk at a discount store, or buy in box loads at discount sites on the internet.
If you have enough freezer space to store a good stock bread and meat, you could try buying bulk lots of these at night, after the prices are reduced. Different supermarkets mark items down more on certain nights, and it may be worth finding out when these nights are.
If you snap up a good special on a fresh food items - you may end up with more than your family can eat. Make use of such items before they spoil - such as making apple pies from a box of apples.
Get clever with credit cards
Do the numbers when thinking about the rewards schemes that come with different credit cards. You can spend thousands just to gain enough points to receive one small reward. You may end up buying things that you don't really want or need, just to gain extra points. If you have used up all the credit on your card, especially if the card carries a high interest rate - you could try switching to a credit card that has 0% interest for the first six months. This will save you a lot in interest, but you do have to stay committed to paying it off within the six-month period. Visit http://www.infochoice.com/ to find a great credit card selector tool.
Money matters
Even if you are only able to save a small amount each week, this amount will add up over time. You may like to put your savings into an online financial facility such as ING or Bankwest, instead of an ordinary bank account. The account charges are generally lower, and the interest rates higher than an ordinary bank account. It also takes longer to access your money - it may take 24 hours to withdraw money and this can help you to avoid impulse buys.
If you have a mortgage, paying an extra amount each week or month is a large saving, as this can cut thousands off the total amount of interest that you will pay over the term of the loan.
Buy second hand
Buying second hand clothing doesn't mean clothing yourself and your children in second-rate clothing. Good quality second hand clothing can be bought online at a number of sites. The Essential Baby trading forums are extremely popular, with members finding great bargains every day.
Visit the library often to borrow a good supply of books to read to your children. When buying books, consider buying some of them at your local Smith Family or St Vincents store. Some of these stores have terrific stocks of children's books at extremely cheap prices. You can buy a good selection of books to suit your child's interests and development every three months or so, and then give them back again as your child moves to the next stage.
Family fun
What's happening this weekend? If a trip to the movies is planned, be sure to check the theatre's website to see if there are any family or special deals on offer. Going to an amusement or animal park? Check the internet for discount vouchers (Hot Dockets, NRMA and other sites).
The best family fun can simply be had at the beach, parks, bushwalking, cycle tracks, or just visiting friends and family. A game of Monopoly at night may be a lot more fun than lounging in front of a video. These things are free and result in terrific family memories!
Keep a box of interesting items for your kids to explore when they are bored - a box full of craft items such as textured paper, old magazines, glitter, straws, cellophane and so on can result in some creative activities. If you're a scrapbooker, involve the kids!
Your kids and money
One of the greatest gifts that you can give to your children is to teach them the value of money. If you give your kids pocket money each week - encourage them to draw up their own budget. Help them to decide what they really want. And most importantly, let them make mistakes! If your child buys a gimmicky new toy that they quickly find to be a disappointing purchase, this may help them learn to choose better next time.
Whether you give your children pocket money or not, talk about the family budget. Involve them in it. Show them how saving money in some areas can allow enough money to buy better things.
Stay motivated!
Ok - the budgets drawn up, the loose change is going into the jam jar - but you're slowly slipping back into old spending habits! How to stay motivated? Whack up pictures on the fridge of the things that you're working towards. Hold regular family meetings where the budget is discussed and see where it's working and where it's falling down - keep it light and fun!
Have some short-term goals as well as longer term goals, so that it's easier for everyone to stay enthusiastic. Ask yourself if the budget has allowed enough room for entertainment each month, for the wants and needs of each person in the family, and to support your chosen charity. A budget that is 'too tight' may negatively affect family life. Couples often find that it works to allow a certain amount each week for each other to spend on whatever they wish, no matter how frivolous.
Join in with members in the Essential Baby 'Managing Money' forum and brainstorm ways of saving money - it's fun, informative and motivating! Within a family, a budget is about working together to achieve goals. It's not about living so frugally that you have no lifestyle.
Within a relationship, both partners should decide and agree upon how the money is to be managed. Domestic violence can include one partner in a relationship using money to hold power over the other partner.
"Financial abuse: (taking control of the money, not giving you enough money to survive on, forcing you to hand over your money, not letting you have a say in how it is spent)"
There is a government-run 24 hour confidential helpline in operation if you would like to talk with a counsellor about this issue: 1800 200 526. Or visit the website http://www.australiasaysno.gov.au/
Do you have tips or questions? Chat about finances in our Managing Money forum.
