From Chaos to Calm: Conquering Family Finances with a Simple Plan
Okay, it’s the start of the year again and for those of you who may have been following this blog for a time, you know how around six years ago, I got the ultimate scare of my life, right? — My husband getting an immediate (and of course, unplanned) open heart surgery.
This took place in January 2017 and all hell just broke loose.
During that time, I did not consider the importance of financial planning because with all the craziness of managing a new family, work, and everything in between, who has time to sit down and talk about boring insurance and stuff like that, right?
But as you know, we learned the hard way. Ignoring it won’t make those surprise hospital trips go away. We need a strategy and since then, we have seen how important it is to be prepared for the future.
In reality, I think more than the actual activity of planning the budgets, the struggle where most people, including myself, find themselves in, is biting the bullet and being REALLY aware of how we spend our money. It is a hard truth that can sometimes uncover our worst spending habits.
But that is a mindset that we have to overcome.
The good news is that futureproofing our family finances doesn’t require a degree in spreadsheets. It’s about smart habits and practical tools that fit our real, messy lives. Forget the fancy jargon and complicated charts; I am talking about practical tips you can implement today:
1. Track where your money goes. We do this just by using Google Sheets. Grab those bank statements and receipts (digital or paper, no judgment!). For a month, track every penny in, every penny out. Coffee runs, subscriptions you forgot about, that impulse buy at the mall – write it all down. Seeing it in black and white is eye-opening! In my case, I was spending way off for my courses, aack!
2. Prioritize the monthly monsters: rent, electricity, service utilities, groceries – the bills that haunt our dreams. Figure out your fixed expenses and prioritize them before spending on all the others.
3. Embrace the budget buddy. Recently, I came across Calculator.me’s Budget Planning Calculator I mentioned? I love that it has suggested percentage guidelines based on net income compiled by Dave Ramsey, author of Financial Peace (Viking, 1997). Look at how it breaks down a sample income into the different expenses we spend on. You can use this as a benchmark, too. This tool made me realize as well how I was doing and while each household can be different, it can still serve as a guide. This site also has other future-proofing tools such as retirement planning, mortgage planning, loans, and the like.
4. Make saving a habit. Every little bit counts, mamas. Start small – round up your grocery purchases to the nearest $5 and stash the difference. Challenge your family to a no-spend weekend. Skip that latte and put the money in a “fun fund” for a family outing. These tiny wins add up to big results, trust me.
5. Talk about money with your little ones. Yep, even the little ones get it! Age-appropriate conversations about saving, spending, and responsible choices plant seeds for a financially savvy future. Make it fun! Let them have their own coin bank, “help” pay bills (with toy money, of course), or choose a family savings goal together.
I hope that with these practical tips and your newfound budget buddy, you’ll be steering your family finances toward calmer waters, especially when the New Year comes *wink*.
Happy 2024, beautiful mamas!
