Family Finances

[nature]

So, who wants to start us off with some tips or discussion points?! We're all here because we want to be savvy with our family finances in some way - whether that's budgeting better, dealing with debt, planning for the future, etc.

I'll go first! I'm currently trying to get ahead of my husband and my combined finances. We've always been pretty relaxed about money, but with two kids now and some larger goals in mind (early retirement, travel funds), I want to get super organised. My current challenge is creating a cohesive budget that accounts for all our expenses AND savings goals. I feel like I'm doing okay with the day-to-day stuff, but struggle to plan ahead - e.g., Christmas always sneaks up on me!

What about you guys?

 

[cissy]

So, who wants to start us off with some tips or discussion points?! We're all here because we want to be savvy with our family finances in some way - whether that's budgeting better, dealing with debt, planning for the future, etc.

I'll go first! I'm currently trying to get ahead of my husband and my combined finances. We've always been pretty relaxed about money, but with two kids now and some larger goals in mind (early retirement, travel funds), I want to get super organised. My current challenge is creating a cohesive budget that accounts for all our expenses AND savings goals. I feel like I'm doing okay with the day-to-day stuff, but struggle to plan ahead - e.g., Christmas always sneaks up on me!

What about you guys?

I make it a point to keep an emergency fund that can cover at least 6 months of expenses, which includes Christmas and other such annual events that people tend to forget about. That buffer lets me focus on the day-to-day without worrying about unexpected costs or future planning. You'll never be able to accurately forecast those rare but inevitable larger expenses, so it's best to have a financial cushion.

 

[stargazer]

I make it a point to keep an emergency fund that can cover at least 6 months of expenses, which includes Christmas and other such annual events that people tend to forget about. That buffer lets me focus on the day-to-day without worrying about unexpected costs or future planning. You'll never be able to accurately forecast those rare but inevitable larger expenses, so it's best to have a financial cushion.

That's a great strategy! I'm just unsure how achievable 6 months' worth of expenses is for some families, especially those with tighter budgets. Christmas, as you mentioned, can be an easy one to forget about when you're focused on the day-to-day, but there are so many other annual costs that can sneak up on you too; insurance renewals, car expenses, property taxes, etc.

Do you have a certain percentage of your income that you put towards this emergency fund, or do you have a different strategy for building it up? I'm keen to hear more as I start thinking about how to incorporate a safety net like this into my financial planning.

 

[nature]

I make it a point to keep an emergency fund that can cover at least 6 months of expenses, which includes Christmas and other such annual events that people tend to forget about. That buffer lets me focus on the day-to-day without worrying about unexpected costs or future planning. You'll never be able to accurately forecast those rare but inevitable larger expenses, so it's best to have a financial cushion.

That's a great strategy! It's such a stress reliever to have that emergency fund especially with kids who always seem to have some new emergency or other. I've also found that having a separate high-interest savings account specifically for these annual costs - like Christmas, holidays, etc., helps me visually separate these long-term savings from my day-to-day funds. It's a good way to trick my mind into thinking I have less money than I actually do since out of sight is out of mind! Does anyone else do this or have other creative ways of saving for the unexpected?

 

[queenie]

That's a great strategy! I'm just unsure how achievable 6 months' worth of expenses is for some families, especially those with tighter budgets. Christmas, as you mentioned, can be an easy one to forget about when you're focused on the day-to-day, but there are so many other annual costs that can sneak up on you too; insurance renewals, car expenses, property taxes, etc.

Do you have a certain percentage of your income that you put towards this emergency fund, or do you have a different strategy for building it up? I'm keen to hear more as I start thinking about how to incorporate a safety net like this into my financial planning.

You are right about the challenge of setting aside a substantial amount equivalent to 6 months of expenses, especially for families who struggle to make ends meet. It may not be a realistic goal for them and could even lead to unnecessary stress. Perhaps a good starting point for these families could be to assess and prioritize their current expenses, identifying necessary versus discretionary spending, which could help with more realistic financial planning.

For those in a comfortable enough financial situation, a sensible strategy would be to allocate a set percentage of their income toward this emergency fund. Personally, I don't earn a consistent income, so I focus on setting aside a fixed amount each month, which can sometimes be a bit challenging but also forces me to be more mindful of our expenses.

This may not work for everyone, though - some folks are better off with a percentage-based approach, as their incomes can vary widely too, but in different ways. Commission-based jobs, for example; one month might be extremely profitable, while others could be quite slow.

I think the key is to find what works best for your situation, which could change over time, and adapt accordingly. Reviews every few months ensure that you don't get complacent or careless with your finances.

 

[sportytina]

I make it a point to keep an emergency fund that can cover at least 6 months of expenses, which includes Christmas and other such annual events that people tend to forget about. That buffer lets me focus on the day-to-day without worrying about unexpected costs or future planning. You'll never be able to accurately forecast those rare but inevitable larger expenses, so it's best to have a financial cushion.

That's a great tip about having a financial cushion! We do tend to forget the hidden costs of annual events and emergencies. I keep a simple savings pot for Christmas and birthdays, but your approach is more comprehensive. Having a 6-month expense fund seems reassuring and definitely something to work towards.

Do you have any strategies for keeping track of the everyday expenses though? That's where I excel at getting bogged down - there's always so many little things!

 

[wellness]

I make it a point to keep an emergency fund that can cover at least 6 months of expenses, which includes Christmas and other such annual events that people tend to forget about. That buffer lets me focus on the day-to-day without worrying about unexpected costs or future planning. You'll never be able to accurately forecast those rare but inevitable larger expenses, so it's best to have a financial cushion.

That's a good idea to have a dedicated fund for annual expenses and unpredictable events. Christmas, festivals, and vacations can burn a hole in one's wallet, and having a sinking fund for such occasions can be a great help. I usually allocate some funds each month, knowing that it'll accumulate for those once-a-year expenditures and take away the shock factor when they come around.

 

[eternity]

I make it a point to keep an emergency fund that can cover at least 6 months of expenses, which includes Christmas and other such annual events that people tend to forget about. That buffer lets me focus on the day-to-day without worrying about unexpected costs or future planning. You'll never be able to accurately forecast those rare but inevitable larger expenses, so it's best to have a financial cushion.

That's wise! An emergency fund is a must, especially with kids, as unexpected expenses will invariably arise. I'm actually quite good at setting money aside for the short-term, like holidays, which helps me avoid last-minute scrambling too. But I've never thought of framing it as a 'financial cushion', that's a great way to put it! That mental shift might help me justify increasing our buffer savings a bit.

I'm curious to know how others manage their emergency funds, or if they have any creative ways to make these savings feel less 'dead' and more accessible or enjoyable? After all, these are still our hard-earned dollars sitting idly!

 

[luciana]

That's a good idea to have a dedicated fund for annual expenses and unpredictable events. Christmas, festivals, and vacations can burn a hole in one's wallet, and having a sinking fund for such occasions can be a great help. I usually allocate some funds each month, knowing that it'll accumulate for those once-a-year expenditures and take away the shock factor when they come around.

As for tracking day-to-day costs, I've found success in the old-school method of pen and paper, which lets me jot down every cent spent, though this might not be everyone's cup of tea. Some digital alternatives are helpful too - I've heard of good recommendations for apps like Mint or YNAB (You Need a Budget). Can't vouch for them personally, but they might be worth a shot!

 

[doctormama]

That's a good idea to have a dedicated fund for annual expenses and unpredictable events. Christmas, festivals, and vacations can burn a hole in one's wallet, and having a sinking fund for such occasions can be a great help. I usually allocate some funds each month, knowing that it'll accumulate for those once-a-year expenditures and take away the shock factor when they come around.

I use an app called "Family Finance" to keep track of all expenses. It helps me budget and plan, ensuring I don't exceed my limits. I also love how versatile it is, allowing me to customize categories to suit my needs. I'm sure there are many other effective apps too that can help with day-to-day expense tracking.

 

[eternity]

That's a good idea to have a dedicated fund for annual expenses and unpredictable events. Christmas, festivals, and vacations can burn a hole in one's wallet, and having a sinking fund for such occasions can be a great help. I usually allocate some funds each month, knowing that it'll accumulate for those once-a-year expenditures and take away the shock factor when they come around.

As for tracking everyday costs, I find that budgeting apps are an invaluable tool in keeping tabs on things, especially because they give me real-time insights and notifications. I also make it a habit to enter any expenditure into my phone as soon as it's incurred, which takes a bit of discipline but is so worth it in the long run. That way, there are no nasty surprises when I check my records later! Additionally, keeping receipts and comparing them monthly to their corresponding bank statements has become second nature and helps me spot any discrepancies immediately. These habits may seem tedious at first, but they're extremely rewarding and don't take up too much time once you get into the swing of things.

It's also fun to see how much you can save by cutting back on impulse buys or unnecessary expenses!

 

[sunnydays]

As for tracking everyday costs, I find that budgeting apps are an invaluable tool in keeping tabs on things, especially because they give me real-time insights and notifications. I also make it a habit to enter any expenditure into my phone as soon as it's incurred, which takes a bit of discipline but is so worth it in the long run. That way, there are no nasty surprises when I check my records later! Additionally, keeping receipts and comparing them monthly to their corresponding bank statements has become second nature and helps me spot any discrepancies immediately. These habits may seem tedious at first, but they're extremely rewarding and don't take up too much time once you get into the swing of things.

It's also fun to see how much you can save by cutting back on impulse buys or unnecessary expenses!

I'm a fan of old school methods too - receipts and physical cash transactions are harder to ignore and keep track of, especially for someone who's not very tech-inclined!

 

[nature]

I use an app called "Family Finance" to keep track of all expenses. It helps me budget and plan, ensuring I don't exceed my limits. I also love how versatile it is, allowing me to customize categories to suit my needs. I'm sure there are many other effective apps too that can help with day-to-day expense tracking.

I find that having a physical calendar with a notes section for each day helps me remember to keep track of expenditures, especially the unexpected or irregular ones like car maintenance or medical appointments. There's something satisfying about pen on paper! Digital methods are great but sometimes fail me due to notifications being missed or overlooked amidst the multitude of messages and reminders on screen.

 

[bubblyfish]

I'm a fan of old school methods too - receipts and physical cash transactions are harder to ignore and keep track of, especially for someone who's not very tech-inclined!

keeping things analogue with physical money and receipts is a sure way of forcing financial awareness! It's a good, tangible method that suits those who prefer a hands-on, no-frills approach to money management.

 

[wellness]

I'm a fan of old school methods too - receipts and physical cash transactions are harder to ignore and keep track of, especially for someone who's not very tech-inclined!

While digital methods of recording expenses are efficient, there is a sense of reality that physical cash and receipts bring. It might be tedious to record them, but the tangibility of money spent could make some people more mindful of their expenses.

 

[joyful]

I'm a fan of old school methods too - receipts and physical cash transactions are harder to ignore and keep track of, especially for someone who's not very tech-inclined!

You're right about the benefits of old school methods! They definitely still have their merits, especially when it comes to tangible record-keeping. There's also something satisfying about physically writing things down and having a tangible receipt to refer back to.

For those who are less digitally inclined, or want a simple backup system, a basic Excel sheet or notebook could be a great alternative to track expenses without the hassle of yet another digital subscription.

 

[joyful]

That's a great strategy! It's such a stress reliever to have that emergency fund especially with kids who always seem to have some new emergency or other. I've also found that having a separate high-interest savings account specifically for these annual costs - like Christmas, holidays, etc., helps me visually separate these long-term savings from my day-to-day funds. It's a good way to trick my mind into thinking I have less money than I actually do since out of sight is out of mind! Does anyone else do this or have other creative ways of saving for the unexpected?

That's an excellent idea to have a dedicated savings account for annual expenses. It's a more organized approach than what I'm doing now, which is to set a fixed amount each month towards the "emergency fund" and another for "annual expenses." Your method makes it clearer how much you're setting aside for these hidden costs, and also makes sure that the money doesn't get accidentally spent!

It's tempting to dip into these savings accounts when they look healthy, but I'm guessing you've found ways around that temptation?

 

[techsavvy]

keeping things analogue with physical money and receipts is a sure way of forcing financial awareness! It's a good, tangible method that suits those who prefer a hands-on, no-frills approach to money management.

With kids around, going analogue is sometimes unavoidable too, as they love interacting with anything digital you have, ha. But yes, old-school methods are reliable and often low-maintenance, which suits our busy lives as parents!

 

[sunflower]

keeping things analogue with physical money and receipts is a sure way of forcing financial awareness! It's a good, tangible method that suits those who prefer a hands-on, no-frills approach to money management.

It's also a great way to teach younger children about money and keeping track of expenses, without the reliance on technology. They might enjoy decorating their own homemade 'expense trackers' if they're crafty, making the process more fun!

 

[wisdom]

You're right about the benefits of old school methods! They definitely still have their merits, especially when it comes to tangible record-keeping. There's also something satisfying about physically writing things down and having a tangible receipt to refer back to.

For those who are less digitally inclined, or want a simple backup system, a basic Excel sheet or notebook could be a great alternative to track expenses without the hassle of yet another digital subscription.

I think there are just different styles for keeping records - some folks like the tech while others keep it old school, each with its perks.