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Monday, September 25, 2017

Raising a Child Without Falling Into Financial Disrepair

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Photo Source Pexels 

As soon as we welcome our child into the world, they become our priority. We want absolutely everything to be perfect for them and for them to have the most contented, blissful experiences possible. The mere thought of our little one having to go without something that they desire is enough to make our hearts sink. However, as you will soon become aware, raising a kid is no easy business. It is extremely costly and many people will find themselves sinking into debt while trying to maintain a lifestyle that is beyond their means in order to constantly provide their child with the best (whether the best in question is necessary or not). Here are a few sage pieces of wisdom on how to raise your child well without falling into financial disrepair.

Budget

First things first, you need to set out a budget. Note down your salary after tax, then deduct the cost of essentials, such as rent or mortgage repayments, bills, food, cleaning products and other necessities. The amount that you have left is your disposable income. In order to stay in the black, you need to ensure that whatever you spend in the given time period that you have budgeted for never exceeds this amount.

Borrow Responsibly 

Admittedly, there may be times when you want to purchase something that you don’t have the cash to pay for immediately. Perhaps this is a present of some sort or a family holiday. For situations such as this, you may consider lending. While this is a completely acceptable thing to do, you need to borrow money responsibly. Check out interest rates before taking out a loan or credit card. Don’t take what you can’t afford to pay back in instalments. Sensible borrowing will also help to create a good credit rating or improve your credit score, as you will be able to make repayments on time and prove yourself trustworthy to other lenders. If you are looking for more ways to improve your score, take a look at creditrepair.co; this page will teach you the basics of borrowing and highlight common mistakes that people make with lenders.

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Image Credit Pexels 

Keep a Constant Eye Out For Savings 

Many things that you invest in can often be found elsewhere for cheaper. This applies to all sorts of areas of your life: your food shopping, your child’s clothing, games, toys and educational materials. Whatever it is that you’re purchasing, see whether it is available elsewhere for cheaper. Many high street retailers will price match online prices if you ask. You may also be able to get some good quality goods second hand or pass certain items down from one child to another. Be thrifty! It will be pay off. You can use the cash that you have saved to treat your little one, or put it aside and save it for a rainy day. These simple steps will see you raise your child well without sinking into huge amounts of debt. They won’t want for anything, but you will still have enough money left over for extras such as treats, days out or other experiences. So, start making these changes to your lifestyle today in order to see the results more quickly.

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