Taking care of your household finances by staying away from debt
According to recent reports, the cost of raising a child has catapulted by nearly 50% within the last decade. Nowadays, parents should predict to shell out about $230,000 on each child who’s between the age of 18. This can certainly be a huge amount of money but hance when you consider fooding, shelter, clothing and education, apart from the aspects of raising a child, you can see your bank account dry at the end of the month. Running a household can indeed be an expensive affair but there are lots of things that you can do in order to minimize the cost. Unless you have a housekeeper, a chauffeur and a chef, it’s tough to manage a home and still maintain the smile on your face. Household expenses like furnitures, maintenance and energy costs are all things that you can adjust with little bit of creative thinking. As the value of money gets higher, you have to take the required steps to avoid incurring household debt and staying off the debt cycle.
Money saving tips for the households on a budget – A step to keep debts at bay
It is undoubtedly true that there are lots of money saving advice on the web but most of them require a complete lifestyle overhaul in order to see handsome returns. Whether it’s skipping some of the family vacations or adopting a more sustainable lifestyle or simply willing to make some huge sacrifices, it is tough for the family members. But once high interest debt overshadows your family life, you will see all your funds drain away at the professional debt relief firms. Here are some steps that you can take.
- Always plan your meals: Experts say that one of the greatest downfalls of the most frugal households is an impromptu visit to the McDonald’s for a dinner. Instead of cooking at home and serving a healthy dinner, most of the Americans prefer going out for dinner and thereby end up wasting a huge amount of their dollars. Splurging is a big “No” when it comes to dining as it not only wastes your dollars but also make you consume calories, which will ultimately need to be burnt out.
- Shop smartly: You might not require being a hardcore couponer in order to save money on groceries but there are some smart shopping strategies that you can adopt in order to relieve the pressure of overspending and incurring debt. Make a list before you reach the store as heading to the store time and again to get the forgotten things will simply waste your dollars behind more unnecessary items. When your kids accompany you to the store, try your best to resist the spontaneous purchases.
- Follow a strict budget: Following a budget is the best option when it comes to maintaining a household within a budget. Formulate a frugal budget and follow it throughout the month so that you get a chance to spend within your means and maintain a balance between what you earn and what you spend. Don’t blow off your budget on a single trip as this will make you indebted for the rest of the months.
Triggering off debt if you incur any – Utilize the online debt calculators
The average household credit card debt stands at $16,278, which is the result of a small number of households that are deeply indebted. Based on the reports of the Federal Reserve statistics, the average household owes maximum debt on their credit cards and this is what is irking them the most. When a household incurs debt in spite of following the above mentioned budgeting tips, you can use the debt calculators. Some of the most common debt calculators include:
- The debt payoff calculator: This calculator tells you the exact time period within which you can repay all your household credit card debt and become debt free.
- The debt reduction calculator: The debt reduction calculator helps you calculate the amount that you reduce after getting help of a debt reduction firm.
- The debt consolidation calculator: This calculator will calculate the amount of your dollars that you save every month after combining your debts.
Therefore, when you’re running a household, you should be watchful about the finances. Once household finances go haywire, you will start incurring debt. Use the debt calculators to make important calculations and delete your financial worries for good.