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Striking the perfect balance between meeting the needs of your family and not burning a hole in your finances can be a constant battle for families. Even if we have budgeted down to the last cent, something always seems to pop up. Learning these five financial tips can help you stay out of the red.
Financial literacy is the first step to helping your family understand the value of money. Of course, you will have to adapt the level of financial literacy according to everyone’s age so that they can understand the importance of saving and working as a team to reduce costs.
Dealing with debt
Most Australians sign up for loans that will give them the needed financial boost. A personal loan can be used to consolidate your debt under an interest rate that is lower and affordable. It has a wide range of uses to adapt to family needs without breaking the bank.
“Debt consolidation works for people who are looking for ways to reduce the interest rate and fees by combining all their loans into one. You also make the process easier by having one loan repayment to worry about rather than multiple.” says CEO of Savvy Bill Tsouvalas.
Getting a personal loan to consolidate your debt can help for a short while, but if you do not adjust your spending habits it would be like putting a plaster on a leaking tap and hoping that everything will be ok.
Being savvy when spoiling your loved ones
ASIC found that at the end of each week Australian homes spend $3,799,910 when it comes to spoiling themselves on a weekly basis. Keep in mind that for every purchase you make on your credit card, it accrues interest on top of it which can affect your monthly repayments. You can start investing in experiences rather than material objects to spoil the family. A movie night with a home cooked meal will make your family and your wallet smile.
Set a realistic budget
It is not surprising to find families using their credit cards to foot the bill for expenses that they did not budget for, which in turns pushes many of them into the red due to the high interest rate. Create a realistic budget, especially for grocery shopping, that will help you avoid whipping out your plastic to pay for things like groceries.
Time your purchases
If you are moving to a new house, looking for a second family car, or need to replace the TV then learning the art of timing such major purchase will not only help you save, but it will also help prevent you biting more than you can chew in costs. Most of these items usually go on sale at some stage. Instead of rushing to purchase such items you can wait for it to go on sale to get a good deal.
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