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Tag: Savings

  • Youth and Thrift: Harnessing Financial Smarts Early On

    Youth and Thrift: Harnessing Financial Smarts Early On

    Navigating financial independence as a young adult is exciting and challenging, presenting a pivotal opportunity to shape your future prosperity. It’s essential to arm yourself with smart strategies that safeguard your financial well-being, ensuring that every decision contributes positively to your goals. This journey requires diligence, adaptability, and a proactive approach to decision-making, emphasizing the importance of making informed choices. Embracing these principles early sets the foundation for a secure and prosperous financial future, allowing you to build a life of stability and success.

    financial smarts

    Choose Major Purchases Wisely

    Consider your significant purchases carefully, particularly when buying a car or a home. Opt for practicality and affordability in vehicles, assessing total ownership costs, including insurance, maintenance, and fuel, rather than just the sticker price. For home buying, ensure financial stability encompasses more than mortgage affordability; consider ongoing costs like property taxes and maintenance. Living within your financial means helps prevent debt accumulation and fosters future savings.

    Set Clear Financial Goals

    Early financial goal setting provides a clear direction for money management. Set specific, achievable short—and long-term objectives, like saving for a vacation, planning for a home purchase, or starting a new business. These goals, while specific, should remain adaptable to changes in income and financial needs, keeping you motivated and financially prudent.

    Boost Your Career and Finances with an Online Degree

    Pursuing a computer science degree online will enhance your career and financial prospects, allowing you to learn IT, programming, and computer science theory from anywhere. This flexible educational path seamlessly helps you manage your current job and personal commitments. As you build critical skills, you’re better positioned to seize emerging opportunities in the tech-driven job market. Overall, an online degree boosts your skill set and significantly increases your earning potential.

    Stay on Top of Your Budget

    Effective budget management starts with clear insight into your income and expenditures, which are best tracked using a budgeting app. These tools aid in categorizing spending, setting spending caps, and tracking savings goals. Regularly monitoring your finances helps pinpoint and curb excessive spending, while automated features in budget apps ensure timely bill payments and savings contributions. Organized financial tracking empowers you to make informed decisions and live within your means.

    Take Advantage of Discounts and Savings

    Leverage your youth to access a variety of savings and discounts, particularly student discounts available at many commercial venues. Always carry your student ID to utilize technology, dining, and travel savings. Beyond these, explore cashback offers, promotional discounts, and coupons to incrementally build your savings over time. These small economies can significantly contribute to your financial landscape.

    Always Read the Fine Print

    Constantly scrutinize the fine print in any contract, whether it’s a lease, a phone plan, or a loan agreement. Understand all terms, particularly fees, interest rates, and penalties. If any clause is unclear, seek clarification to avoid potential pitfalls in the future. A thorough understanding of contractual obligations protects you from unforeseen financial burdens.

    Be Careful Lending Money to Friends or Family

    Lending money to friends or family should be cautiously approached to avoid possible relationship strains. If you choose to lend, clarify the repayment terms to both parties to ensure mutual understanding. Consider lending only what you can afford to lose, acknowledging non-repayment risk. Prioritizing your financial security sometimes means tactfully saying no to close ones to preserve your finances and relationships.

    As you progress to financial independence, remember that every choice can impact your economic stability, and taking measured steps today can prevent financial pitfalls tomorrow. Cultivating healthy financial habits now will pay dividends throughout your life, providing a buffer against unexpected challenges and enabling more freedom in your future choices. Stay informed, be strategic, and prioritize your financial health to confidently navigate adulthood’s complexities. By investing in your financial education and adopting disciplined financial practices, you are laying the groundwork for long-term security and well-being.

  • 5 Unexpected Expenses And 5 Ways to Pay Them

    5 Unexpected Expenses And 5 Ways to Pay Them

    Paying for any expense is never a fun time. But unexpected expenses are especially the worst. They often destroy the most potent of financial plans and leave absolute destruction in their wake.

    Sometimes it’s a medical emergency that is worth six months of your salary. Another time, you have to attend a wedding —somewhere in Europe.

    According to Bankrate’s Financial Security Index, three in ten Americans have no emergency savings at all. So what should they do if faced with expenses they’re not expecting?

    There are several ways to tread waters in such a scenario. But before going into them, let’s take a look at some of the most common ways unexpected expenses emerge.

    unexpected expenses

    Common Types of Unexpected Expenses

    Even if you map out a perfect budget that covers everything from rent to grocery, your financial stability is vulnerable to some of these unpredictable expenses.

    1.    Medical Expenses

    Anyone not covered under a good insurance plan can be devastated by medical expenses. According to the New York Times, the majority of American families are a single medical emergency away from complete financial ruin.

    Unfortunately, a $1000 medical bill is enough to put most households under. And let’s not ignore the mental toll health-related matters takes on an individual. Money should be the last thing on a person’s mind while they’re dealing with health issues.

    Ideally, it should never come down to health against money but unexpected medical conditions often create this bleak situation for people who don’t have any savings set aside or are uninsured.

    2.    Home Maintenance

    You never know when something will go wrong in the house. Be it termites, plumbing issues or the refrigerator breaking down — house expenses come out of the blue.

    It’s hard to plan for them but one can minimize the risk to an extent. While you can not predict a colony of insects finding refuge in your attic, you can get someone to look at the wiring and plumbing system to see if any issues can occur in the immediate future.

    Even then, these types of expenses are inevitable. And without any savings in the bank, they can be especially worrisome.

    3.    Buying Gifts or Taking a Trip

    You would be surprised to know just how many people go into debt in the holiday season. People who haven’t saved throughout the year often seek out loans for buying Christmas gifts.

    But this can be avoided with an appropriate saving plan. Meanwhile, there is no way to plan for your friend announcing her pregnancy and buying something cheap for her baby shower is not an option either.

    Similarly, unplanned trips can throw one’s financial plans out the window. Whether you’re flying out to attend a friend’s wedding or to see an uncle who’s going into surgery —these trips can often be quite costly.

    4.    Car Issues

    Having your own set of wheels is always a good thing. However, with your car comes expenses like property tax, inspections and maintenance.

    Sometimes a ride can give you other troubles as well, which is why anyone that owns a vehicle should have a car savings account. You never know when the engine will break down or any other repair will be needed.

    When that happens, you need to have a plan or you’d be left with a broken down car and a massive bill from the mechanic.

    5.    Stolen Items and Mugging

    No one wants to be at the receiving end of theft or mugging. However, life is unpredictable. Losing something valuable can be both personally and financially damaging.

    Replacing items is a tedious process especially when you’ve been a victim to a crime. Insurance and savings can come to your rescue in such situations.

    Still, it’s better to stay safe, take inventory of expensive items, save their pictures in a secured location and write down their values. In case they are ever stolen, you should take all the necessary preparations.

    unplanned expenses

    How to Pay for Unplanned Expenses

    Life is uncertain and things often don’t go as planned. Paying off unforeseen expenses might seem like a mountain to climb. Fortunately, a few tricks can make this summit a whole lot easier.

    1.    Reduce Your Variable Expenses

    It’s hard to completely overhaul your expenses on short notice. Although the process can be overwhelming, you would need to go through your statements, utility, credit card, receipts, loan payments and other spendings.

    Knowing where the money is going will put things into perspective. It will also help you reduce variable expenses such as electricity bill, car maintenance and grocery among others.

    Reducing these expenses will not be easy. It will require lifestyle adjustments such as avoiding transportation costs by carpooling, cooking at home instead of eating out and skipping the manicures for a while.

    When it comes to shopping for groceries, there’s always the option of seeking discounts. This will be easier online than in brick-and-mortar stores. Digital coupons can help you save on regular household expenses and bring down your variable expenses considerably.

    2.    Seek a Personal Loan From a Credit Union

    Credit unions are often the better alternative to commercial banks as the latter tend to have higher interest rates. The only catch is that membership is required in credit unions before one can apply for a loan.

    This requirement can be fulfilled by opening a savings or checking account with the credit union. What you have to examine is whether savings in interest is greater than added requirements.

    For anyone that’s already a member of a credit union, securing a personal loan with relatively lower interest rate shouldn’t be that much difficult.

    3.    Reach Out to Family

    Borrowing from family might be one of your better options. It’s extremely rare for a relative to charge interest on a loan. Also, it’s less likely for this loan to have a predetermined repayment model where you’d be repaying a fixed amount each month.

    But there is a downside to such a loan. Involving money in relationships can end up having some negative consequences. Research suggests that almost 45% of such transactions end up badly.

    One way to avoid such an ordeal is by making the loan somewhat official. Putting the loan in writing and setting some loose terms might eliminate the possibility that you will take things lightly. After all, whether you borrow from a cousin or a bank, a loan is meant to be repaid.

    4.    Utilize Your Savings

    While borrowing money to pay for an unexpected expense might buy you some time —dipping into your savings is a much more permanent solution. But for this, you need a cash savings account that can be accessed without any penalties.

    Beyond this, you need to ensure the money is not earmarked for some other purpose and whether or not you would be penalised for withdrawing it. An early withdrawal penalty is the last thing you need on top of a surprise expense.

    Keep in mind that withdrawing cash savings is preferable to investments. Generally, the investments are meant for savings that have medium-to-long term.

    5.    Sell Personal Items

    Quickest way to make some easy cash is by going through your personal belongings and selling items that are no longer needed.

    Look for clothes that no longer fit and sell them to local consignment shops. Organize a garage sale. Find collectibles like records, DVDs and action figures and put them up on websites like eBay. You can even advertise these on relevant Facebook groups to get better prices.

    Not only would you make some easy bucks doing this but also free your home from unnecessary clutter.

    Conclusion

    Among the things that are certain in life, unplanned expenses are right up there with death and taxes. There are infinite ways in which you can be faced with a money situation you were least expecting.

    A car accident can have you not only paying for fixing the vehicle but also treating any injuries you might’ve sustained. Similarly, a death in the family incurs ridiculously expensive funeral costs.

    Thankfully, these risks can be somewhat mitigated through a good insurance plan and by setting aside some savings. There are other ways to go about this as well. One can reduce their expenses, seek out loans and sell some unnecessary items to ease some of the burdens.

    The only option that’s not on the table is giving up and letting these expenses overwhelm you.

  • 11 Greatest Hacks To Get Your Family Finances In Shape

    11 Greatest Hacks To Get Your Family Finances In Shape

    Do you ever think to yourself that you know you need to make a change with the way your family finances are operating? You recognize your way of doing things isn’t working anymore, but you have no idea where to start.

    You are not alone. This is a topic that a lot of people out there really want to know.

    Millions of people feel the same way.

    Managing family finances is not an easy task for many people. Especially if there are reasons that your current situation is changing.  Budgeting for a new baby, moving, kid going to college, etc.

    family finances

    Keep reading to get some helpful hacks to get your family finance situation going in the right direction.

    Personal finance is a hard topic to ask anybody else because that can be a little invasive. So it’s super difficult to find out where we are on the spectrum.

    Are we doing well at managing our own family’s finances compared to other people? Are we really far behind on where other people in the same age range are with managing family finance? There are some easy basic solutions to managing your family’s finances. That way you can be sure you are on a great path.

    Success of how well you are managing your family’s finances is measured solely on if it is working for you or not. Nobody else can tell you exactly what processes to use when managing your monies. 

    Every household is different, but there are a lot of guides that help a ton. Being knowledgeable of the do’s and don’ts of great money management skills will go a long way for you.

    How To Get Your Family Finances in Shape

    Here are some hacks to help get your household finances in shape.

    Table Of Contents

    1. Implement Basic Math

    This is an important step in money management. Honestly, I do simple 1st-grade math for every month, to manage my family’s finances.

    I have a spreadsheet of our bills. It includes:

    • The bill
    • The amount of the bill
    • The day it drafts out of our bank account

    When the bills come in my email or in the mail, I update my spreadsheet right away with the amount due for that bill for that month. The spreadsheet is actually on my iPhone.  I use Google Drive and sync it to my phone so my spreadsheet is readily available for edits.

    Then I simply add up all the bills. I get a total. This is your total expenses.

    Then I total our income for the month.

    Now I subtract. Subtract income minus expenses. Voila!

    That is the magic math that I use. Works like a charm and works every time.

    It’s quite an easy concept.

    Don’t forget when you are adding up your bills, to include your gas, groceries, eating out and savings account additions.

    Those are bills too ya know 🙂

    2. Use Averages

    A lot of people forget that expenses such as gas, eating out, groceries, etc, are large bills that “go out of your bank account” every month.

    Be sure to include these on your spreadsheet.

    So many times I hear people say they don’t know where their money is going because there is more month than money.

    This is a big reason why. They aren’t accounting for the eating out, groceries and gas.

    I know for me, these alone are large expenses for the month.

    In the beginning, when I was trying to figure out a system that worked for our family, I used a simple tactic that really helped a lot. I still use it from time to time now. At the end of each month, I would add up all our purchases in 3 categories. 

    Eating Out, Gas, Groceries. 

    Then, I wrote those numbers down and would do that again at the end of the next month.

    After a few months, I took an average. So, I took the number in each category, and added them up and divided by how many months I had a figure for.

    That is the number to this day, that I use on my spreadsheet for bills.

    I don’t look at my individual bills as much anymore. I primarily used the add function on my spreadsheet. I just need to know how much money is going to exit out of my bank account that month. And then, I subtract expenses from our household income. Now I know what we have leftover.

    Like I mentioned before, don’t forget to put a savings account on your list of bills. That needs to happen.

    3. Contribute to your Savings Account Automatically

    Contributing to your savings account is one of the most important things that you can do for your family’s financial situation.

    It does not have to be a lot of money that you are putting in. It just has to be something. That way you are in a good habit of putting some money away.

    When it comes to a time that you can put a higher amount away, you will already be in the habit.

    A lot of times, people do not necessarily put money into savings. They leave it in their checking account and just keep a higher balance in there.

    Keeping your savings separate, and in a different account is a good practice, and it’s something you should think about if you are already not doing that. 

    Some banks allow you to automatically draft money from your checking account into your savings account.

    You can pick what day of the month the draft happens, and what amount. It’s great because it’s out of sight, out of mind. You don’t have to consciously log into your online banking to make a transfer. It is automatically going to happen. 

    credit cards

    4. Pay more than Credit Card Minimums

    This one is self-explanatory. If you can swing it, pay more than the credit card minimums. That way your principal balance will start to come down.

    A lot of credit cards have such high-interest rates, that when you pay the minimum, you aren’t making much headway on the actual balance.

    If you can, open a 0% credit card and transfer your balance to it. Just beware of high balance transfer fees. 

    5. Have a ‘No Spend Day’

    I love these days, but they do not come around often enough!

    If you can eat all your meals at home one day, you are doing great. 

    Plan a place to have quality family time for your family that doesn’t involve spending money. Maybe take a walk, take a ride in the car, etc. 

    There are a lot of ideas out there. If you can have a few “no spend” days, you will want to repeat it and that can only help your family’s financial situation.

    CNBC has a motivating article on how someone saved a ton of money by having “no spend” days.

    Just do not be fooled into thinking you can spend more on another day because you saved money on a different day. Lol.

    6. Unsubscribe from Retail Emails

    When you are trying to manage your family finances better, temptation with enticing retail emails does not help. All it does is make you want to buy!

    Their marketing teams really do a good job of making you want to shop when you open their email. Or even if you see their store name in your inbox, it still tempts you to want to shop.

    I recommend unsubscribing from a majority of them. If you want to shop, you will shop. 

    You do not need a constant reminder of the sales, deals and beautiful products every time you open your email. You are trying to get your family’s finances in shape, and this is a good practice.

    7. Cut out extras

    Sometimes you have to come up with some creative financing. If you see on your spreadsheet that there are some items that you could remove from your spreadsheet, that would be a great feeling.

    So do it. Give your money management a makeover and slash unwanted expenses.

    Is it gourmet coffee and eating fancy lunches at work that’s becoming a hefty bill? 

    Is it credit card payments? If it’s credit card payments, open a 0% interest credit card and balance transfer for a small balance transfer fee. That way you are making headway on your principal balance.

    Is it too high of a grocery bill? There are tons of ways to cut money spent at the grocery store. You just have to meal plan, write out your shopping list and don’t shop more than once a week.

    Once you see what all your bills are, on paper, then you can get a good idea if you are impulsive spending on too many extras.

    After you establish if you are spending too much on “extras“, then you can cut some of those indulgences out. Just until your family’s finances are managed better. Then you can add them back in, as you can.

    No shopping

    8. Check it off

    Once a bill comes out of your bank account, put a checkmark next to that bill on your spreadsheet.

    This way, you can easily add up how much more money is going to go out of the account that month. This is nice because, at the snap of a finger, you can have a number for how much more money for bills will exit the account.

    There are many times I have wanted to know at a moment’s notice, how much more money will leave my bank account this month. With the spreadsheet, I can easily add it up quickly.

    This is quite handy around the holiday shopping season, and knowing what not to waste money on.

    9. Pay Yourself First

    This is a good practice to adopt. This means that putting money into your savings account every month.

    You work so hard to pay other creditors, so why not pay yourself?

    A savings account is so valuable because it is there as emergency funds. 

    How nice of a feeling is that?

    So how do you put money into savings when you already come up short in the month?

    Pay yourself first, meaning put your savings account as a bill on your excel spreadsheet.

    This is the second item on my own list, next to my mortgage. No need to overwhelm yourself thinking that if you can’t put $50 away then there’s no point.

    If you can do $10, do $10 and don’t eat fast food one day.

    You will start to get into a great habit of putting money aside and not spending it. As you get better at managing household finances, you will be able to put away more.

    Saving money takes practice. It’s just like anything else!

    10. Pre-Spend Your Money

    Huh? Let me explain.

    When you use a spreadsheet to see what your monthly bills are, add them up and get a total dollar amount.

    When you see that total dollar amount, that is essentially “pre-spending” your money. You already know where some of your money is going to, for that month. This is so very important that you take a look at this.

    Otherwise, you have less of an idea where your money is going during the month.

    financial planning

    11. Meeting with a Financial Planner

    It is always a good idea to meet with a financial planner to manage your household finances. They will make recommendations for investment accounts, retirement, college savings accounts, etc, based on your situation.

    You are never too young or too old, to take this step.

    Don’t think that because you may be lean on money during the month that you can’t still partake in putting money into retirement or college savings.

    There is always a way to put a few dollars away. 

    You can find a financial planner by:

    • Word of mouth
    • Asking your friends
    • Searching the internet

    I strongly recommend a financial planner. They will help you with things that you were not doing on your own. Check out this article from the balance.com on how to find the perfect financial planner.

    family finances pinterest

    Related Posts:

    Andy Masaki

    Andy Masaki

    Guest Author

    Andy is a blogger at Penny Less Dad and a financial writer associated with the Oak View Law Group. He is a debt expert and a member of several online forums where he shares his advice as well as tips to lead a financially independent life.

    • Saving On Utility Bills? It’s Easy If You Do It Smart

      Saving On Utility Bills? It’s Easy If You Do It Smart

      People everywhere are rethinking how they consume entertainment and utilities in their homes. With the variety of services now available to homeowners, it is important to know what the options are. Many companies are producing new products that provide solutions beyond traditional services. Today you can find more personalized and cost-effective solutions as a consumer than ever before for saving on utility bills.

      saving on utility bills

      Utilities

      The renewable energy options available for residences are changing the way people think about their energy consumption. Traditional means of providing energy to a home by gas or electricity companies are no longer the only cost-effective energy solutions. Renewable energy resources such as solar panels are readily available for residences. These can help support or sustain a home’s energy usage. Residential internet options are now more varied than they have ever been. Companies like Starry are providing next-gen home internet services in Los Angeles and other major cities. Consumers using these newer services are finding that high quality does not require high cost.

      Entertainment

      In-home entertainment is much more than the typical cable or satellite television. There are a variety of streaming services that offer many entertainment options. Today’s consumers are mixing and matching services to get exactly what they want while still saving money. Television isn’t the only form of entertainment with a variety of ways to consume. There are services to rent and stream movies, video games, and even local TV. With so many options on the market, you can customize what you have available in your home and ensure you always get to see and do what you want.

      Security

      A professional home security system and monitoring may be the best way to protect your home, but the options available for homeowners are more varied than ever. Smart home products such as doorbells with cameras, smart door locks and garage door openers are changing the home security game. These can often be monitored by the homeowner or combined with professional monitoring services for a more comprehensive solution. Assess your security needs and find the most cost-effective solution to keep your home protected.

      Advances in technology and services that are readily available are helping homeowners make better choices about how they spend their money and what they choose to consume. People are finding personalized solutions for their homes that are benefiting their wallets as well as the environment. Take the time to look into the variety of services available and find your new favorite.

      Smart ways to save on utility bills

      Related Posts:

    • How To Stretch Your Budget When You Are A Single Parent

      How To Stretch Your Budget When You Are A Single Parent

      Not everyone can get along well, being a single parent.
      Responsibilities are beyond normal understanding, and the mental strength required is unparalleled to stereotypical parenting!

      With that being said, single parents must have a firm grip over their finances, and track their income minutely, while factoring each and every section of savings and expenditure. And for doing so, one should have a stretchable and handy single parent budget!

      This post is meant to describe the aspect of getting hold of a budget that you can stretch as per your own terms while being a single parent!

      So, here are some points that you need to go through if you want a flexible and stretchable budget to function at its best.

       How to stretch your budget 

      Always have those extra savings for unexpected expenses

      No matter what budget you are aiming to use, an additional savings vault is always necessary for tackling all sorts of unexpected and unplanned expenses.

      The biggest reason for having this savings structure is to fight medical expenses and obviously any type of uncalled for situations that pop up in our lives every now and then. Examples can range between anything from your child’s surprise announcement of a school trip, to your car breaking down one sunny morning.

      Using credit every time for compensating these emergency expenses might not be profitable! So, whatever is your income, you should be focused toward building a separate savings amount.

      And, don’t mix it up with your general savings!

      Habits are important before you plan to stretch a budget

      Budgeting is good, but it can’t help you if your financial habits are lame and gross. A good money personality is a primary requirement for achieving financial freedom.

      You must have the mentality to double your savings as much as you can. And, staying away from debts should be an optimum priority.

      If you constantly fall into debts and have the tendency to rely on debts every time you run low on cash, instead of skipping the expenses altogether, then no budget can save you.

      Stretching a budget is a mere terminology, as your income is fixed, and all you are doing is expanding and contracting expenses as per your needs.

      Therefore, debts are definitely something you should not indulge into.

      So, what can you do with debts?

      You need to use credit cards, only in cases of emergency, and for buying objects that will profit you over time.

      The same gets applied to personal loans and other forms of unsecured debts. And, make it a commitment, never to take out payday loans, even if you are having tough times and are running cashless!

      Payday loans are traps, and it’s very difficult to get out of them, as they have incredibly high-interest rates, that surely drains out heavy amounts of cash, from a consumer.

      Learn to compare debts based on their character and interest rates. Not all debts are equal, and not all debts are good to have in your money portfolio.

      Secured debts like mortgages and all are considered to be investment vehicles, but credit cards, payday loans, and other unsecured debts are typically deemed as unprofitable and waste of money.

      Therefore, prior to starting out with a budget, you need to materialize some good money behaviors, like:

      • Using cash for most of your purchases and transactions.
      • Keeping those credit cards locked up, only to be used for emergency purposes, and for replacing other high-interest debt tools, like when possible transferring your payday loan debt into credit card debt, or paying off medical bills, and all.
      • Teaching your kids about money management from an early age, and not influencing an expensive mindset.
      • And, last but not the least, maintaining the continuous act of saving money, even by squeezing out pennies from a low income.

      Follow a budget, that really works out as planned

      Any random budget does not provide enough options to stretch it as you want. Most of the budgets come in a fixed format, that might not be manipulated too much. And, if you manipulate, then the budget won’t function well or will become a different budget altogether.

      Like, say for example, you are using a 50-20-30 budget, where 50% of your income is to be kept for normal monthly expenses, 20% is for savings, and the rest 30% will be used for luxury or other emergency expenses.

      Even though you can manipulate the percentage figures, but increasing one section will decrease the other two. One month, if you increase the savings percentage, then you have to reduce the monthly expense section or the luxury/emergency expense section.

      It might look that it’s not a big deal, but as the month progresses, you will be facing severe difficulties.

      Hence, the best budget for you will be something that is not limited by percentage figures, or fixed allocations.

      single parent

      The best budget for you is the Zero Based Budget

      In this budget, there are no fixed percentages or a stable format that will be controlling how your income gets distributed to the various expenses or monetary obligations for a month.

      In this budget, you will decide what expenses you wish to have for a month, and how much amount you will dedicate to each of them.

      The name is Zero Based Budget because it brings down the difference between your total income and total expense to zero.

      This is how the budget works. Based on the idea from a previous month, you will be listing down all the expenses you might typically have in the current month.

      Any expense that you feel is not mandatory; you can skip it out easily by not listing it in your expense sheet.

      To remember, you should also consider savings as a part of your expenses, since that will also take out a portion of your income. So, define set amounts for each of the expenses, and sum it up to see the total expense amount you got to deal with, in the month.

      If this amount is higher than your income, then you need to reduce your expenses or lower the dedicated amounts for each of the expenses.
      And, if the total expense amount is less than your income, then you can plan anything you want with the leftover.
      If the amount is equal to your total income, then revise your budget once again, and finalize it for the month.

      Once the budget gets fixed, you cannot derail from it, unless an emergency expense pops up!

      Oh! Well yes! I guess I already told you at the beginning of the post to always keep a dedicated amount for unplanned expenses beyond your normal savings behavior. Pay attention to that.

      You can’t expect to tackle a heavy unplanned expense with one savings vehicle, or a stand-alone income!

      You are a single parent, and you probably have only one stream of income. In that case, you should never skip the unexpected savings amount. And nevertheless, you should always try to earn more with side hustles.

      More is the income, and less headache will it be for you.

      That’s all you had to know about following a stretchable budget. Use it as you want, but be sure to revise your budget each month for better results.

       

      Related Posts:

      Andy Masaki

      Andy Masaki

      Guest Author

      Andy is a blogger at Penny Less Dad and financial writer associated with the Oak View Law Group. He is a debt expert and a member of several online forums where he shares his advice as well as tips to lead a financially independent life.