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Keeping the family finances in check while you also run a small business can be challenging. With instability in the economy it can be tough to figure out how to pay all the bills and still have money left over for savings, business reinvestment and discretionary expenses. However, there are a few things you can do to make the most of your income and manage your household in a financially responsible way.
1. Find the Right Budgeting Method for You
It’s nearly impossible to read anything about finances without discussing the importance of budgeting. As much as it can be a tedious process, budgeting really is vital to spending and saving money wisely. One key to making the budgeting habit stick is finding a method that works best for you. Maybe you want to pay cash for everything using an envelope system and keep a physical account of expenditures. Perhaps you prefer to use budgeting software or an app. Either way, experiment with a few methods to find the one you like and then use it diligently.
2. Consider Savings Options
Having a savings account or emergency fund is important so there is a safety net for unexpected expenses or loss of income. However, there are more options than just a traditional savings account at a bank. Perhaps you want to invest some of your savings into precious metals. You could use savings bonds or certificates of deposit. There are even some apps that will work automatically by transferring all the change from every purchase into a savings account.
3. Research Debt Consolidation
If you have a lot of debt such as credit card balances or student loans, consolidating it could be a good option as you may save money on interest or improve your credit score. There are several different debt consolidation options, and it’s not a decision that can be made lightly. You can talk to a financial advisor to see if consolidating your debt would be a wise move for you.
4. Change Your Insurance
Homeowner, rental, auto and life insurance payments can take a large part of the monthly budget. You may be able to lower those bills by combining all your policies with a single provider. Sometimes just changing insurance companies helps lower the premium. You can learn more by speaking with an insurance agent and asking about discounts for multiple policies. It’s also important to make sure your insurance policy is accurate for your needs so you aren’t paying for coverage you will never use.
5. Prioritize Your Spending
Another important consideration is where you are spending your money. Of course, you must pay for necessities like your mortgage and utility bills. But there are many other areas where you should determine if the service is worth the price you are paying. For example, if you only watch a few TV shows, it might not be worth it to pay for a cable subscription to hundreds of channels.
Keeping your household spending under control requires consistency, research and making tough decisions. When you have a good handle on your finances and feel confident you are spending in a smart way, it makes the whole subject much less stressful. Researching options such as debt consolidation or insurance changes can also help you find new ways to make the most of your income.
