Yeah, you know what I mean! The moment that pink calendar sheet of yours turns and the months start saying -ber, all you can think about are the holidays that come with it. Had it been the young me, I would’ve had the enthusiasm of an irresponsible person and spent more than I make. No kidding! Shopping galore!
However, as a mom, it’s now up to us to keep our budget in check. The holidays we used to wait for are now our foe bearing the fear of overspending! As much as we want to splurge on Black Friday and Cyber Monday, we also want to have as much food on Christmas. With the left and right inflation, it’s difficult to keep track, and the last thing we need is irresponsible budgeting and giving in to the temptation.
So, how did I change from a binge shopper to a financially responsible mother? Not on my own, that’s for sure. Let me share with you the secrets that help me manage our family’s budget so you can share it with your own.
Number 1. Get to know your lowest net income. This may sound odd but not only the economy has inflation. Have you ever wondered why you still find yourself living paycheck to paycheck even though your salary has been increasing? That’s because we’re getting a sense of relief knowing that our new higher salary would always cover any bill shortcomings, making us unconsciously spend more on unnecessary things. That’s what you call Lifestyle Inflation. Your needs did not increase, but your wants did. The best way to avoid Lifestyle Inflation is to manage your budget according to the lowest net income before any increase in your salary.
Number 2. Deprivation leads to overeating. I’m writing this while waiting for lunch so excuse my starving language. LOL! But this is very true. Same to a restrictive diet, studies show that when you deprive yourself of buying things that you want, you’re likely to feel stressed causing the urge of impulsive spending to make yourself feel better, only to feel regret afterward when you find yourself short on essential bills. Instead, you should acknowledge the craving to buy the things that you want and at the same time, understand that there’s a portion of your finances that you can let go for such recreational things. So how much should you spend on these wants?
Number 3. Make a budget planner. As cliche as it sounds, making an actual budget planner encourages you to adhere to your expenses whether it’s for housing, utilities, food, savings, or clothing. The challenge is: How much should you allot for these expenses? The old biased me would put 101% of our budget into Personal and Recreation. Kidding aside, it’s better to leave financial advice to the experts. No worries, you won’t have to pay for an actual advisor for this. Tons of financial websites offer free services that will solve your budgeting needs in a snap of a finger, or in this case, a click of a mouse. Here are some examples:
Odoo is an accounting website that is useful for managing your business. That balance sheet you’ve been struggling to balance since your college days can now be solved in just a click. This is a great way for keeping the business money within the business. But enough about work!
Nerdwallet is a free budget planner worksheet to help decide how to best spend your money using the 50/30/20 budget. By filling out your income and your expenses, nerdwallet will compare your current expenditures to a proposed budget guided by 50/30/20. I hear you though, those excel sheets hurt my eyes too.
Calculator.me has a more user-friendly interface with a variety of helpful online calculators ranging from loans, credit cards, and other financial planning. My personal favorite in managing our family budget is their Family Budget Planner. All you need to do is fill in your net income. Yes, as simple as that, and it’ll take care of the rest.
Keep in mind that your actual expenses may not exactly suit the recommendations following the 50/30/20, but if you want to see a game-changer in managing your finances, you sure can give these a try!
Number 4. Budget with your family. This final one which is the most important is more of a relationship tip. Whether you share the expenses with your husband or wife, a parent, or any guardian, it will be in your best interest to have open communication regarding the budget. Studies show that most family problems are because of money. Difficulties with money aren’t always about low income, but sometimes the lack of planning and communication.
Woah! I didn’t realize that lunch is over. Ever since I had a family of my own, managing finances is something that I’ve been very passionate about. It’s truly a challenge to reappropriate your priorities but with discipline and the help of your loving family, you’ll realize that budgeting is a reliable friend into living a comfortable life. Until next time!
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