money matters, money talks, tips and tricks, budget and finance

Starting a family is a grand adventure. As you move from a single individual to part of a married couple and on to a part of a family, there are a lot of things to consider. Your finances change drastically at every stage of life. There are things you can do to help you prepare.

No matter the stage of life, you should always be budgeting. This simply lets you know how much you make, how much you spend, and what you spend it on.

Better Financial Choices

Financial management is the process of wisely budgeting, spending, saving, and investing your earnings. It is important to get on the same page about money when you are in a relationship. Couples that are in open communication money, avoid debt, and don’t spend more than they earn tend to have better relationships.

  • Identify your habits and attitudes around money.
  • Make a budget and live within your means.
  • Avoid debt and use good judgment when it comes managing loans.
  • Open a checking and savings account.
  • Build an emergency fund.
  • Set goals and have those difficult discussions around money.

Steps For Success

money matters, money talks, tips and tricks, budget and finance

Getting on solid financial ground takes time and requires that you be intentional about your money. Here are some baby steps you can start taking.

  1. Emergency fund ~ Start out building an emergency of $1,000 to start. Put every bit of cash you can spare into this account until you reach your goal.
  2. Get out of debt ~ Debt can really weigh you down and put a strain on your relationship. If you marry a person, you inherit their debt. Work together to get any student loans or credit card debt paid off as soon as possible using the snowball effect. Start by working on paying off your lowest obligation first. As you free up money, apply it to the next debt.
  3. Increase your emergency fundYou want to work towards building an emergency fund that can cover three to six months of expenses. This provides a safety net in the unfortunate event that one of you gets laid off or falls ill or gets severely injured.
  4. Invest in your retirement ~ Start saving for retirement. Work toward setting aside 15 percent of your household income for this purpose.
  5. Start savingIf you have children, start putting money aside for college. It is also nice to have a savings account that allows you to go on fun trips or splurge occasionally.
  6. Pay off your home as early as you canDon’t make minimum payments. As your wealth grows, make bigger payments on your house.
  7. Get insurance ~ Some insurance is required by law. If you don’t have auto insurance, check into Nashville auto insurance. Consider other types of insurance as well. Now that you are building a family, it might be time to get life insurance. If you own a home, you need homeowners’ insurance. Insurance makes unforeseen accidents a little less devastating.

Setting Goals

Sit down with your family and discuss financial goals. Money management comes easier to some than others. In order to fully commit to a budget and curb bad spending habits, it is good to have a goal in mind. It is easier to avoid expensive lattes if it means you will be able to get out from under a mountain of debt or you get to go on a vacation.

Discuss with your partner what your financial goals are today as well as in the future. How do envision your retirement? Do you plan on having children? Are you interested in traveling? Do you want to start your own business or have a parent at home while the children are young? These are questions you need to discuss together. As you talk about your lives together and your hopes and dreams, start discussing ways to accomplish financial goals that support these dreams.

:camera: via Pixabay {first 2 images}

Written by

mumwrites

is a 30-something work-at-home mum who blogs in between home chores + child-minding. i love coffee, books + reading, collecting lovely postcards, + spending loads of time outdoors with my little man.