If not then all you got to do is get your budgeting plans right. Yes, it might sound a little awkward but if you are serious about giving the best of life to your kids within your limited income then perhaps budgeting is the only way out. You may have to compromise on many things in life but it would not be more than watching your kids’ grow with all the comforts of life. The best part of it all, you do not get into debts by doing so. So here is a checklist of how to go about framing the right budget plan:
- Know your income sources: The primary thing is to know the different income sources you have like a stable salary, income from house rent and so on. Add up all the income to know exactly where you stand with your finances. This will help you to determine the amount can save at the end of every month after meeting your other expenses.
- Determine your basic expenses: Note down all your expenses at one place. Now study them carefully to know how you are spending your monthly income. The areas where you are spending more or perhaps unnecessarily should be curtailed to increase your savings.
- Curtail unnecessary expenses: If you want to determine which expenses you need to control you first need to find out the areas where you are spending more. Most of the time it is seen that you may be spending more on buying clothes or eating out at restaurants. Make note of the expense that you are incurring on such items and work on them accordingly.
- Invest in child plans: If you want to save for your kids with a particular aim like then it would be great if you can invest the money you save each month in some child plans. There are various kinds of child plans available in the market so you need to do a bit of research to find out which plan suits your criteria primarily. If you start saving for kids through child plans from an early age it will prove fruitful when your kids reach college. You do not have to think about taking a loan to fulfill the education expenses. The child plan will take care of it.
- Save every month: It may be a small amount that you could save every month but it is necessary that you inculcate the habit. Try and budget on your shopping bills, electricity bills, phone bills and other expenses so you can save some money at the end of each month. You can use this money to meet the emergency expenses like your kid’s birthday party expenses, gifting a toy, or paying doctors fees when they fall ill.
Author: Jonny Pean is a financial advisor with easyfinance.com. He provides useful advices on financial issues in order to make life easier and debt free. He specializes in providing budgeting tips, solving problems regarding loans, home equity and so on.