Being a parent isn’t easy, financially or otherwise. If you are a mom and have significant expenses coming up then it’s very important that you plan for them as best you can. The reason for this is that there is a global cost of living crisis, and gas and food cost more than ever before. If you don’t plan for significant expenses, then you could end up being left short of cash after paying for them and might be unable to pay for other essentials.
This post will offer some great tips for moms on how they can plan for big expenses:
Work Out Expenses
The first thing that you need to do if you are planning for expenses is to work out what the expenses you are going to have to pay for likely are. If you have young children, then it’s worth figuring out how much braces cost, in addition to school uniforms, and annual medical check-ups. By working out how much all of these things cost, it will be easier for you to set aside the money for them when the time comes. If you have a co-parent, then it’s a good idea to sit down with them and do this. Two minds are better than one. If your children go to private school, you should also factor in their education costs.
Once you know what expenses you are going to have to pay for, it’s a very good idea to work out what your personal spending budget is. Most people work out their budget for the month, but it’s also possible to work out an annual budget. When you are calculating your budget, you should factor in the rising costs of food, fuel, and gas. When you have a budget worked out, you will know how much disposable income you have at the end of each month for you to dedicate to any upcoming expenses. There are apps that you can use to help you work out a budget.
In addition to calculating your budget, you also need to identify any things or services that you are spending too much money on. Because money’s already so tight at the moment, it’s highly likely that you will need to make some reductions in your usual spending so that you can free cash up to pay for expenses. If you have online banking, then your online banking app will be able to give you a breakdown of how much you spend each month, and what things you spend the most amount of money on.
Moving away from freeing up cash and onto managing and handling actual expenses, the first thing that’s worth suggesting is paying for expenses in installments, rather than all at once. Most stores have some form of financing, even dentists. You should bear in mind that if you do not have good credit, then you will be unable to access installment plans. An installment plan requires good credit before it can be accessed. The retailer to whom you apply will run a credit check on you, which will tell them whether or not you can be trusted to be lent money.
If you are struggling for money, then it might be worth taking up a second job. There are lots of different second jobs that you can work that won’t interfere with your main job, like night jobs for example. As it’s likely that you already work in the daytime, taking up a night job can be a great way of getting some extra income without having to change your working hours around. If this is something that you are interested in but you are a single parent, you will need to arrange childcare for your children when you are away at night.
One last thing to think about is borrowing money. You can either take out a loan with a payday lender or you can borrow from your family and friends. Whichever you choose to do, remember that if you don’t make repayments on time, you can get yourself into a lot of trouble. When you don’t repay payday lenders on time, they can issue a default which will seriously harm your credit rating. If you do not repay loved ones on time, then you can damage your relationship with them and potentially cause them financial hardship.
If you have expenses coming up, then it’s a very good idea to plan for them. Planning for expenses will make it easier to pay for them when the time comes. This post’s advice can be used to help reduce the impact that your expenses could have on you financially, as well as to free up cash for paying them.
Read more money tips from Eighty Mph Mom!