Getting on Top of Family Finances for the New Year

*Collaborative Guest Post

 

It can be smart and helpful to get on top of your finances at the start of each new year as this is the perfect opportunity to plan ahead so that you can comfortably provide for the family for the year. With 2019 just around the corner, it is worth looking ahead to determine what big expenses you will have this year and how you can go about planning how to afford these family expenses without it having a huge impact on your financial situation.

 

Looking Ahead

 

First, it is worth looking ahead to see if there are any major expenses that you are likely to have and in what months you can expect these. These big expenses could include a family holiday, buying a new car, decorating the bathroom and other big costs which every family typically makes from time to time. In addition to this, you will also need to factor in other big costs like birthday presents/parties, family days out etc. This will give you an idea of roughly how expensive each month of 2019 will be so that you can start to plan how you will afford each month.

 

Amazing bathroom at The Alverton hotel

 

Creating A Budget

 

From here, you can then create a budget so that you will be able to afford to live comfortably each month. For many families, the 50/30/20 budgeting rule is effective where 50% goes on essentials (bill, groceries etc), 30% on non-essentials and the remaining 20% on savings/debt payments. If things are tight, there are many ways that you can make savings such as buying non-brand products, selling items you no longer need, supplementing your income and eliminating unnecessary spending.

 

Money

 

Funding Major Expenses

 

There are likely to be a few expenses over the course of the year which will be difficult to afford, such as buying a new car. For these larger purchases, it is worth looking into alternative ways to fund the purchase. This could include buying a car on finance from somewhere like AA Cars so that you can spread the cost to make it easier to manage. Loans can be another good option to fund a major and/or unexpected cost.

 

The start of a new year is the perfect time to get your finances in order for the year ahead. This will allow you to draw up a budget for the year and plan ahead for any major expenses that you are likely to have so that these do not come as a surprise which can negatively impact your finances.

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