Financial Planning Tips While Raising A Family

By Shrutika Vaishnavi | June 13, 2018

Planning to start a family or already raising one? Whatever the situation, here’s how to manage your finances well.

Planning to start a family is a huge decision! And if you already have one, you also have a few big responsibilities to take care of. For starters, you need to plan your money right and fulfil the needs of every single member of the family. That’s what the head of the family does! No one said it would be easy. But by planning your moves right, you can handle the responsibility well.

Depending on various factors like the number of family members, their age groups and interests etc., their needs will vary. As the head of the family, you need to analyse these needs well and fulfil them as well. While doing so, just remember that there’s a fine line between need and want. Just because your kid wants the latest PlayStation, doesn’t mean they need it too. Once you learn to differentiate between need and want, you’ll be able to make better decisions.

Additional Reading: 13 Smart Tricks To Save On Your Wedding

Here are a few tips to get your financial planning on track:

  • Consider second-hand shopping

Although most people think that buying something second-hand deteriorates their reputation, it’s high time for a mindset change! We agree that buying a pre-used product might not always be the best decision (if you don’t analyse it well before making the purchase). But depending on the product, it might not be that bad a decision after all!

For instance, if you have kids, consider accepting hand-me-downs instead of shopping every time they outgrow their clothes. They grow pretty fast and that means you need to shop quite frequently. Basically, you’ll just end up wasting a good amount of money on their clothes. That doesn’t make sense, does it? The same applies to furniture and electronics too. If you find pre-used ones in good shape, why not consider buying them instead of shopping for new ones?

In India, people tend to judge you and your financial status by the car you drive. Don’t let that stop you from buying a second-hand car. Look at the brighter side instead. You get to drive your dream car at a much cheaper rate. And the best part? It doesn’t have ‘second hand’ written on it in bold letters. So, if you maintain it well, you can enjoy driving the car of your dreams and make others jealous!

  • Home cooked food? Yes, please!

Instead of ordering in every time, you must consider cooking at home. Why? It’ll help you cut down on your monthly expenses. Although we don’t often realise it, ordering food from outside every day affects our monthly budget. Yes, even if you order from an economical restaurant.

Cooking at home has a lot of advantages. You get to spend more time with your family, you get to learn new recipes and you also tend to get fitter. Home cooked food is healthier after all. You want your family to be healthy, right? By cooking at home, you get to ensure that both your family members and bank account stay in the right shape. Start cooking at home and who knows, maybe you could be the next MasterChef!

Additional Reading: 8 Ways Foodies Can Save Money While Eating Out

  • Declutter and free some cash

Do you have things lying idle at home? It’s time to sell them make some cash. It will not only help declutter your house and make some space for new things but will also improve your financial situation. You could organise a small garage sale and sell all your old stuff. It could be those fancy things that you’re bored of and don’t use anymore.

Don’t ask us about the benefits of decluttering your house. Clutter traps negative energy. Decluttering your house is like clearing your mind. Moreover, you need to free some space to make way for new and exciting things.

  • Grocery shopping science

Yes! Grocery shopping is a science in itself. Like every other thing, you need to plan this well too. If you don’t plan your visits to the grocery store well, it can land you in trouble! How? When you visit a grocery store, you tend to buy every other thing you see. Things become worse if you’re hungry! You feel like eating everything; right from exotic chocolates to snacks you ideally shouldn’t be munching on.

The sad part is that most of these just end up lying in your fridge well past their expiry dates. Why waste money on things you won’t even consume later? Doesn’t make any sense, right? Precisely why it’s advisable to make a list of things you actually need and most importantly, stick to this list! Once you master the art of making a grocery list, you’ll start saving a lot more.

Additional Reading: Best Credit Cards For Grocery Shopping

  • Recycle and reuse

It’s always smarter to invest in things that can be reused. Instead of repeatedly buying the same items over and over again, it’s better to buy reusable and recyclable products. For instance, instead of buying paper towels over and over again, it’s better to switch to washable cloths. Similarly, you can use glass bottles to store drinking water instead of buying new plastic bottles again and again (unless you like drinking from smelly plastic bottles).

  • Bring out the Sherlock in you!

Before buying something, research a bit. Don’t settle for something that’s too expensive just because you’re too lazy to look for other options. Even if you have to spend some more time exploring a bit, don’t shy away from doing so. Looking for offers and discounts won’t hurt; trust us! Getting a good deal is no less than hitting the jackpot. You might not realise this now, but at the end of the month, it surely will make a difference.

  • More movie nights. At home!

If watching a movie is your idea of entertainment, try doing it at home. It will not only help you save a lot but will also strengthen your bond with the family. Choosing the movie might be the difficult part, given that the entire family needs to agree on a film. But the experience of watching a movie with your family without having to step out of the house is out of this world!

You can sit glued to your favourite spot in the drawing room, snack continuously and binge watch as many movies as you want! That sounds like a fun thing to do, doesn’t it? All this with your loved ones around. How cool is that! You can enjoy lots of movies without having to spend much.

Additional Reading: 6 Best Credit Cards For Movie Buffs

Raising a family is not as easy as it sounds. As the head of the family, you’ll have to think about a lot of things. Managing finances right is one of the most important responsibilities that you need to shoulder. Might sound difficult, but we’re sure that after reading the above-mentioned points, you’re quite sorted.

We hope these pointers help. For more tips on money management, budgeting and savings just hit us up!

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