HOW TO MANAGE MONEY, EXPENSES AND DEBTS AS A PARENT

 

Every day in Worried, Paying, Bills, Man, Stressedour lives, we come across one thing or the other that makes us spend money. It could be our need for groceries, utility bills payment or just a desire to get a new gadget or a vacation. In one way or another, money is being spent. In our daily experience, three things that are deeply interconnected with money are the following:

  1. Expenses
  2. Savings
  • Debts

As a parent, if you do not understand your finances and how money works, you may find yourself always struggling to meet up with your basic needs like rent, clothing, feeding and even the education of your children. Such a situation makes it nearly impossible for many to be able to afford satisfaction let alone luxury.

As mentioned earlier, expenses, savings and debts are deeply inter-related with how money works for you…whether you enjoy your income or you receive it and already running into debts in just a few days into the new month. The difference between enjoying a financially stable life and one with debts is simple…many parents only save after all of their expenses have been made.

Doing this is one of the major reason why many parents struggle to make ends meet every month. You need to understand that your savings should never be made after all expenses have been made. Rather, your expenses should begin after your savings have been made. Simply put, you should only start spending and sorting expenses only after you have taken a fraction of your income into savings.

Credit Squeeze, Taxation, Purse, Tax

When you this, it helps you prioritize the things you need to spend on because you now have a lesser amount with you. This way, you only spend on your major needs and not just your wants or desires. You need to understand that making too many expenses than necessary will eventually make you run into debts in the long run. Here are a few things you need to understand:

  1. Expenses will always arise but they can be managed and prioritize.
  2. Debts are avoidable and not necessarily a way of life.
  3. No matter how little you earn, savings is always possible.

Failing to understand these things can affect your ability to pay the tuition fees of your child in time, delay rent payment and other utility bills payment. As a parent, you need to and must be able to understand how money work to be able to enjoy a financially independent life.

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