Keeping a roof over your family’s head, making sure they’re fed and have everything they need is an essential job as a parent. So when money is tight, making ends meet can be stressful. Here are some of the ways you can improve your money situation which will benefit you in the here and now, as well as later down the line.
Get out of debt
Being in debt is expensive. Because things like loans, credit cards and store cards all charge significant interest, every month that you carry a balance you’re paying out extra money. One of the best things you can do in terms of your finances is pay off your debts. Sell things you don’t need to raise money, cut back on luxuries for a while and take on some extra shifts at work.
At the very least, consolidate debts with one loan or card which has a smaller interest amount so you’re paying less overall. If you’re in serious trouble with debt then speak to a debt management agency. They can liaise with your creditors and arrange more affordable monthly repayments as well as get interest frozen.
Save money
Once you’re out of debt, your next step to giving yourself a secure financial future is to save money. Have an emergency fund that’s only ever used in true emergencies– this will stop you from falling into debt or getting in a pickle if you’re landed with an unexpected expense. You can always have a separate savings account for things like luxuries that you want to buy- new technology, a new car, a vacation etc. But keep your emergency fund in tact.
Get insured
To prevent getting stung with certain expenses, it can be worth getting insured. Medical, dental, pet and home insurance can all prevent you from being left out of pocket if the worst were to happen. While these will be an extra expense that you will need to work into your monthly budget- however it could save you thousands in the event of an incident. While a good injury lawyer will be able to get you the compensation you’re entitled to if you have an accident, medical insurance will pay out while you’re waiting for the claim. That way you don’t end up in tons of debt and go broke waiting for the claim to pay out as this can take some time.
Image of pink piggy bank surrounded by stacks of dollar bills
Establish a side hustle
You can work a job for years and years and feel totally secure, but what happens if one day the company goes into administration? What happens if they’re bought out by someone else and decide to get rid of you as an employee, or you lose your job over unforeseen circumstances? This is a worry for everyone, but one way you can protect yourself is to build up a side hustle. Something that you can do in your spare time (and ideally is fun and enjoyable) but earns you a second income.
Even if it’s not a full time wage, having a second income to fall back onto can be a lifesaver during a difficult time. Start an eBay business, write a blog, or build up your ratings on freelancing site so you can always get some extra work when you want it.