How to Buy Your Family Everything They Need Without Overspending
It can be difficult to afford everything that we need at times and when we have a family there are more to buy for and therefore it can be even more difficult. It is common for families to get loans to buy some things that they need because they cannot afford them otherwise. For large items such as houses or cars this is not surprising and it is often difficult for even the most affluent family to afford these without borrowing money. However, something it is the little things that get too expensive, even perhaps managing basic bills and food and this is when action needs to be taken as if you have to borrow every month then you will end up struggling to repay what you owe. In this situation you may need to take drastic action to make sure that you are managing.
- Cut down all spending to essentials – it can be wise to start by cutting spending right down so that you are only buying essential items. This means paying your bills and buying food and other things that you cannot do without but cutting back on everything that you do not need. It is worth questioning everything that you buy and thinking about whether it is necessary. Although this is a very extreme thing to do, it is only a first step. Once you have cut back, you may then find that there is some money available to start spending in some areas again. You will just have to decide where is most important and prioritise that spending better. Budgeting can be hard, but it will mean that you will be able to manage your spending without the risk of going into unplanned debt.
- Compare all prices – it is good to compare the prices of everything you buy and see whether you are getting good value for money. There may be some things that we are prepared to spend more money on because we feel it is worth it because the quality is better, perhaps because we get a better service, it lasts longer, does its job better or tastes better. Cheap is not always best but there are probably items that we are paying more for than necessary and it is worth checking. Remember to check those things you pay for by direct debit such as utilities, insurance and financial products as well as the items that you buy in person at the shops or online.
- Pay off any outstanding loans – it might sound odd that you should be considering paying out more money when you are trying to find more, but it does work. If you have an overdraft, for example, you will be paying interest and possibly a charge for it every month. If you can get it repaid, then you will no longer have to pay this fee so it is worth it. The same goes for other short-term loans like those offered by Cobra or credit cards where the interest rates could be very high. Just paying off a small amount each month will reduce the interest you are charged and as you whittle down what you owe you will be paying less and less interest and so will be able to afford to repay more and more. So, although it might seem to take ages to reduce the balance by much to start with, as you go on it will accelerate down.
- Try to save a bit each month – Once you have repaid the loans you will be in the position where you can save a little each month using that money that you were using to repay the loan. This will allow you to have a reserve of money and so if you find that you are struggling or need to buy something big, you will have money there to fall back on. Do pay off loans first though as in most cases savings account interest is very much lower than interest that you are paying on your borrowing.
- Sell things – if you want a lump sum of money then selling things could be a good way to go about it. If you have items that you no longer need then selling them could raise some money. Although you will only get this money once, unlike income, it will still be helpful to make large purchases or to pay off debts. Selling things like clothes you no longer wear, household items you no longer use and things like this may not raise a fortune, but it can all help. You may also have some things that are of high value which could really help you out.
- Earn extra money – It might be possible for you to make some extra money that could help out. You may already feel that you are working so many hours that you cannot manage any more but if you are not, then taking on more work could be a good option for you. Perhaps swapping to a better paid job or trying to get a pay rise will also be possible options. However, for most people these will not be options and they will need to think of alternatives. It might be possible to do some work from home, perhaps online which could earn a bit more. Or perhaps to rent out a room of the house or the driveway to make some.