Decide on a set amount to subtract from your income every month, and take it out before paying expenses
Growing up, many of us looked up to our mothers for their financial know-how and money-savvy ways. My mom worked full-time while running the household, and I was always amazed at how she managed our finances.
Back then, I assumed that all adults, mothers in particular, just naturally knew how to handle money. However, like anything in life, nothing ever really comes naturally.
Many skills—and I would consider financial literacy a highly valued skill—are acquired and learned through experience and discipline. But there is something about becoming an adult that forces one to take a long, hard look at your financial practices and make them as efficient as
possible.
Most mothers can budget and stretch every peso to the limit but, in doing so, often forego putting aside a little extra. How can you save when there is so much to be paid, especially for the kids’ needs?
Raising children, from infancy to adulthood, is expensive. And in our desire to give our families the best right now, we may end up leaving nothing for the future.
Plus, the idea of saving or investing is often connected to having a big chunk of money that one does not need, giving rise to the mindset of saving or investing at a later stage when one has “extra.” But the truth is, there will always be bills to pay and unforeseen expenses, which is why it is so important to carve out that “extra” for savings.
Fortunately, with discipline and diligence, there are ways to save. Here are a few tips:
Pay yourself first.
There is a reason why this is the most common piece of advice from experts. Rather than trying to figure it out or justifying why this can’t work for your situation, just do it.
Income – Savings = Expenses
Decide on a set amount to subtract from your income every month and take it out before you start paying your other expenses. Work on budgeting the balance for your expenses, and make up for the chunk you took out by minimizing variable expenses, rather than letting your expenses pile up and cutting back your savings.
It may be difficult and tempting to use everything you have now to meet current needs, but setting aside something for the future is a favor which will be much appreciated later on.
However, when you save, put your money in a reputable bank. Should you choose to invest, stay away from easy, get-rich-quick schemes. Anything that sounds too good to be true, such as a quick, astronomical return on investment, is suspicious.
Same age
Borrow, don’t buy.
Babies and children often outgrow things before they can even use them. If you have enough friends and relatives with children who are the same age as yours or older, make a quick check before you buy one-time use items such as costumes or formal wear, or big-ticket items such as a high chair.
But it goes without saying that when you borrow something, be sure that you can take care of it and return it in the same good condition. Don’t borrow a crazily expensive item that your child might break and that you would have to replace later on.
Pack lunch.
Whether it be for your children in school or for yourself in the office, preparing lunch has its advantages. In fact, saving money from this is almost just a bonus, considering the benefits—a healthy meal with control over what goes into your food.
Avoid buying special items just for the children.
Unless your children have specific allergies or medical conditions and can’t use the same things as everyone else, there is really no reason to buy them their own laundry soap or bath towel, among others. Everyone knows that buying in bulk is always cheaper, and if you have to buy smaller packs of everything for different members of your family, you will have to spend more.
Shop smart.
When shopping, remember that there is always a cheaper way to buy whatever you need—whether waiting for a sale or buying from last season’s collection. When it comes to baby stuff, there are also countless sites and groups online that sell slightly used items at a fraction of the original price. My friend once bought a Little Tikes Car for her son for only 10 percent of its usual price from an expat’s buy-and-sell Facebook page.
But just because something is on sale or cheap, don’t go overboard and buy things you don’t need!
Too many people advise cutting back on small things like daily coffee, which really adds to expenses, but keep an eye out for those once-in-a-while unplanned trips to supposedly “cheap” stores that can really wreak havoc on your wallet when you walk out with purchases that you won’t even remember the following week.
Plan your meals and grocery purchases.
I used to think that this was only for the super moms who could plan amazing feasts for their families to enjoy every night, weeks in advance. I now realize that this is for every mom who wants to maximize her groceries while keeping her bill to a minimum.
Creating a meal plan (at least two weeks’ worth if you want to really save) doesn’t have to consist of fancy meals. You can continue cooking the same family recipes you all enjoy, but knowing what ingredients you will need and can reuse for several dishes will allow you to create a more efficient grocery list.
When you go to the grocery, try to stock up and buy in bulk, but get only the items that you truly need and use on a regular basis, such as cleaning agents, household supplies and basic food ingredients, or those which you will need in bulk for your meal plan. Before checking out, edit your cart and see if you can remove three to five items to make sure you are buying only essentials or health items.
Alternative places
Avoid temptation.
Whether it be for yourself or your children, if there is nothing in particular you need to buy, avoid going to a place where you will be tempted to shop. Consider alternative places for your family to spend the day with less costs, such as a park, zoo or restaurant that is not in a shopping complex.
If going to the mall is unavoidable, consider leaving your credit cards at home, bringing only the exact amount of cash you want to spend and thus avoiding accidentally buying something you did not plan to.
Do it yourself.
These three words are your best friend when it comes to birthday parties, baby food, photographs and so much more. With the proliferation of DIY ideas and instructional websites and videos online, there is nothing that you can’t do yourself anymore nowadays. Just check the cost of the supplies and make sure it doesn’t actually cost more than just buying it in the store.
Plan ahead.
The principle of planning ahead doesn’t just apply to meals, but rather to almost everything from birthday parties to school supplies, Christmas gifts and family vacations. Planning early allows you to canvas and compare prices so you can find the best deal.
It also allows you to take advantage of sales and avoid the price hikes when things are in demand.
Keep track of your expenses/spending habits.
While we are completely aware of the big monthly expenses and religiously find ways to conserve water and energy bills, we are not usually as strict with the daily miscellaneous things. As long as we don’t go shopping, we are lulled into a false sense of complacency that we are not spending anything.
But if we were to keep a list, using Excel or mobile applications such as Toshl, they will tell a different story and allow us to take an objective look at our actual spending habits.
Once we figure out where our money is unnecessarily going, we can come up with more ways to use our money more efficiently. Remember, as Benjamin Franklin once said, “Beware of little expenses. A small leak will sink a great ship.”
