Kiddipedia Financial Support Information
It is a fact that with kids comes many more expenses, and if you live in a city like Sydney where everything is expensive it can make things challenging. That is why having a money saving strategy, as well as a rainy day fund, is so important.
Here are some of my top tips to get you started
Weigh out your must haves vs. your wants
There is a difference between the things you need to have, like food, electricity, school fees and uniforms, and the things you want to have, like 3 x TV streaming accounts. If you want to get started with your money weigh out what you need vs. what you want.
- Start by going over your bank statement and see where your money is going. If you have subscriptions that you forgot about and don’t use, delete them immediately. If you use Netflix, Stan, Binge and Prime, pick one and get rid of the others, same goes for your music streaming services. If you have these services streaming on multiple devices, consider the cheapest option as to whether you on a multiple device plan or have individual accounts for members of the household.
- Do you have extra items that cost money that you don’t need? For example, does your family have two cars? Do you need two cars? If you don’t, it could be worth selling one and saving the fees and insurance if you can live without it.
Build your rainy day fund
While I understand it may not always be possible, it is a good idea to put away 20% of your pay if you can for a rainy day, or for further expenses that will arise, such as school fees, emergencies or investments.
Put this money into a high interest account if you can, chat to your bank about it. Once you feel that you have enough of a “buffer” for emergencies, you can then invest some of your additional saved money. Speak to a financial planner before you do, but options for you may include shares, property bonds, property, salary sacrificing super and so on.
Plan out your shopping
Grocery shopping and shopping in general is the biggest black hole when it comes to money, especially if you are going in without a plan. Shopping with kids in tow and no plan in mind is a recipe for overspending that is for sure.
I highly recommend making a list of what you need before you go to the shops to stay on track and save yourself from spending another $50 on unnecessary items. If you are shopping for items that are not groceries, I suggest taking note of them and shopping around in case you can get them cheaper online or elsewhere. The key takeaway – impulse shopping is never a good idea.
Try to eat at home and minimise your use of food delivery services
It is so easy to enjoy a nice, restaurant meal delivered to your door, but it certainly adds up. I recommend setting boundaries, such as getting delivery 1-2 days a week only and bringing your lunch to work/school and eating at home. It is likely to be healthier and it will save you so much money! It is frightful how much gets spend on delivery these days, especially in the cities.
Sell what you no longer need
Be it on Facebook market place, Ebay or at the local markets, if you are not using an item anymore, sell it. There is no point in holding onto something you don’t use and there is also no point in binning it if you can get at least a little return back from it.
Gerry Incollingo, Managing Director of LCI Partners
