If you’re a breadwinner, you know how hard it can be to make sure your family always has enough. Often, this involves putting your personal expenses off to the side. It may be disappointing, but you’d do anything for your family. You might have even sought help from the best licensed money lender Singapore in financially tough times.
What if you realised there’s a way to balance your personal expenses with your family’s expenses? You’d definitely be happier. Here are five ways to do exactly that.
Always create a budget
Budgeting is the most effective way to take control of your finances. As a breadwinner, budgeting is crucial. You need to know exactly where to put every dollar you earn.
Divide up your monthly income into categories like food, rent, transportation, utilities, childcare, education, and the like. You may also include a leisure fund in your family budget. This way, you can make sure you have money for all your family’s needs.
Limit unnecessary expenses
Unnecessary expenses can eat away at your finances without you knowing it. You’ll just be surprised that you are out of money even before your next salary comes in. Then, you may be forced to borrow money to cover essential expenses.
Examples of unnecessary expenses include streaming services and gym memberships you don’t use, as well as dining out when you could just eat at home. Taking a taxi when you could have taken the MRT or a bus is another example.
Cut down on these unnecessary expenses and watch how much money you end up saving. You can then use the money for education, rent, or other essential expenses.
Prioritise the essentials
Evaluate your monthly expenses, then find out which ones are the most important. Rank them from most to least important. Allocate more of your income to higher-ranking expenses. Those that are not high on the priority list should get less budget.
Examples of essential expenses include food, housing, transportation, healthcare, and education. These should have the lion’s share of your budget every month.
Find extra sources of income
If you don’t want to worry too much about your family’s finances, it’s best to find additional income streams. This way, you can also fund your personal expenses while taking care of your family’s needs.
Online freelancing is a good choice these days. Many people offer their skills and services to various clients around the world for a price. You can even offer the skills you already use in your current job to other clients outside of your normal working hours.
You can also start a small business, like selling pastries if you’re good at baking. You can use the income to add to your budget.
The Singapore Government even offers SkillsFuture credits to help you gain new skills. In turn, you can use your new skills to earn an additional income.
Save and invest
Saving and investing are keys to growing your money. Saving, for one, ensures that you don’t have to rely on loans during financially challenging times. Also, saving means you can set aside money to fund your personal expenses.
Savings can also be a financial safety net. A substantial emergency fund, for example, cushions you and your family in case you lose your job or are unable to work. The ideal emergency fund should be able to fund six months worth of your family’s expenses.
Investing, on the other hand, allows you to grow the money you already have. Learn about the best places to invest, such as stocks, bonds, and real estate. Consult financial advisers for help as well, so you know you are putting your money in good investments.
Conclusion
Breadwinners, take note of these five tips to help you balance your finances. You don’t have to set aside all of your personal wants just so your family can have enough for their needs. All it takes is discipline and building good habits with your finances, as outlined here.
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