Every dad knows just how awesome being a parent is. But with all the love and care this brings also come plenty of responsibilities. In the past, fathers were the main breadwinners of the family. And while the situation certainly changed over time, fathers still play an important role when it comes to managing household finances.
Here, we will explore some of the best and most effective money management tips every dad should know. These will not only allow you to save up but they will also teach you how to be smarter with your money in general.
Mind your debts
The sad reality is that few people these days can honestly claim they live debt-free. And while it’s almost impossible to aim at paying all of your debts off entirely, you need to create a plan that will allow you to actively work towards this goal. With a smart financial management plan in place, managing your debt will be made significantly easier. You can make a spreadsheet where you can list all of your debts, including the interest rates, starting from highest to lowest. That way you can easily assess your priorities and figure out which debt you should work on paying off first. Spoiler alert: debts with higher interest rates should always be your priority.
Create a budget
Another practice that will help you keep your finances in order is creating a budget and sticking to it. In order to be able to manage your finances properly, you first need to know exactly how much of them you’re working with each month. Once you identify how much money you have, subtract all the necessary monthly expenses. These should include your bills, mortgage, debts, insurance fees, food and groceries and everything else you need to pay for each month. The sum you’re left with is the amount of money you’ll have at your disposal. Once you know how much money you actually have, it will be easier to manage it and even save up when possible.
Save up – where it makes sense
Now, whenever talking about finances and money management, people often focus on saving up and chasing deals. So, it’s quite natural that you initially reach for the cheapest option when buying things in hopes of spending less money. But the fact is that the cheapest is not always the best option. Sure, you’ll probably pay less initially, but if the item is of poor quality or poorly made, it can start breaking sooner than a pricier alternative. Therefore, yes, try to save up but only where it makes sense.
Shop around for best insurance policies
Finding the right insurance policy can often feel like a hassle. Although it may not seem like it at first, there’s plenty of different options out there to choose from. For instance, when looking for the best car insurance policy, make sure you shop around a bit. Check out different offers, compare them, and see which ones make the most sense–not only for your budget but your lifestyle as well. With such a wide variety of insurance types and offers out there, settling for the first one you come across doesn’t make much sense.
Master the art of DIY
By mastering the art of DIY, you will be able to reduce or entirely cut some of the minor repairs costs. There are actually plenty of things people can do and fix around their homes that don’t actually require professional help. And with the internet and YouTube being accessible as they are today, there’s really not much you can’t learn to do yourself. But before you become a true DIY king, make sure you get familiar with some useful tips that will enable you to do it properly. Also, keep in mind that fixing a mistake could potentially cost you more than the project itself would initially cost, so make sure you assess every DIY project before you start.
Be reasonable when it comes to kids
In the end, all parents are guilty of this to some extent. When we have children, it can become extremely easy to overspend on them without actually realizing it. And no, we’re not talking about the essentials, but we’re mostly hinting about toys and clothes. Since children develop quite fast, there’s really no reason to buy them clothes in advance. It can happen that you bought a bunch of cute sweaters for your child in spring but by the time winter rolls around, all of them are suddenly too small to wear. Similarly, while you certainly should buy toys for your children, try not to go too overboard.
With some careful planning, proper organization and these 6 useful tips in mind, being able to manage your finances should be a piece of cake.
By Mike Johnston