If you want to retain control of your life and have the freedom to spend your time as you’d like, then having control of your finances is essential. Many families might save substantially by simply examining how they’re spending their money, and by correcting any undesired spending habits.
Implementing Family Budgeting Strategies
A family budget should inform every aspect of your household’s spending. It doesn’t have to be exhaustive or meticulous to be useful: even a vague plan is usually better than no plan at all.
Start by listing all of your regular sources of income, and your regular spending. Then ask yourself what your financial goals are. Are you saving for a deposit for your children’s house? Do you want to go on a big holiday in the summer? Do you have any home renovations planned?
Once you have an idea of where you stand, and where you’d like to be, you can start to cut spending in areas that don’t support your financial ambitions.
Reducing Household Expenses
In many cases, you’ll be able to save substantially by making small changes to your spending on essential things like groceries and utilities. Consider shopping around for different energy providers, or supermarkets. Take advantage of loyalty schemes, and think about whether you might benefit from bulk discounts for non-perishable goods.
Often, you can save in the long term by spending more on goods that will last. It’s better to buy a single expensive, long-lasting item than it is to buy a string of cheap short-lived ones.
Be Clever with Transport
For many families, the cost of getting from one place to another can represent a substantial chunk of overall expenditure. The cost of motoring can be slashed by simply driving less: car-sharing schemes, public transport, or simply walking to school or work rather than driving there can all be helpful.
It’s also possible to save on major expenses like vehicle insurance by bundling your coverage together. For example, you could consider multi-car insurance as it’s a great way to drive down your overall spending. Other things you might also consider are preventative maintenance and fuel-efficient driving techniques.
Engaging in Family Savings Challenges
You can incentivise sensible spending by trying to make a game of it. You might try to compete with one another when it comes to saving, or participate in schemes like the ‘1p challenge’. This involves setting aside a penny on the first day, two pennies on the second day, and three pennies on the third day – and so on until you’ve carried on the streak for a year. Over the year, you’ll have saved an impressive £667.95 – which you can commit towards areas of spending that really matter.