It’s probably not a question that you’re asked very often, but it’s something important that you should always consider when dealing with finances or budgeting. Ask yourself, where is your money currently going? Is it mainly going to bills? Is it going to a holiday in the future? Or are you saving it in case there’s an emergency in the future?
These are just a couple of the considerations we all have as frugal moms. We want the best for our family and we don’t want to blow our budget on useless things that aren’t worth their value, but there will come a point in time where you’ll realize that you aren’t exactly doing much with your money
Necessary expenses are important, but so is the future
As much as we need to pay for things like rent, food, and bills, we also need to plan for the future. Being stuck in a stale environment without any plan for our money can lead to some nasty revelations in the future. For instance, have you spoken to a financial planning firm yet about inheritance money and your will? It’s not something that people like to enjoy talking about, but it’s a responsibility that you need to take up as an adult with a family.
There are also other considerations that are focused on your children. If they’re still young, then do you plan to send them to college or university? They’re not going to make that money themselves, so are you prepared with enough funds to send them to a good school? What about the car? Do you have a car ready to ferry your unborn children around, or have you decided to go green and use bikes and public transportation instead?
Planning for the future can be daunting (and sometimes sad) but it’s a necessity just like paying your bills. Ask yourself where your money is headed, and if you can’t respond with anything past the current year, then you need to do some serious budgeting and thinking.
Money does no good rotting in a savings account
Savings accounts are relatively useless now. There’s really not much difference between keeping $5,000 in your bank versus keeping it in your wallet. Of course, it’s prone to be stolen, but you could always keep it in a safe or someplace secure. That way you don’t need to head to the bank just to withdraw it and you don’t need to worry about losing your card or anything. Of course, there’s the argument that it helps you cut down on unnecessary expenses, but if you have a spending issue then that’s something completely different.
Money does no good rotting in a savings account. If you have a lot of funds saved up for an emergency then it’s fine. However, if you have plenty of savings for an emergency and you’re sitting on $10,000 extra that isn’t doing anything, then it’s only going to lose value over time due to inflation. Instead of leaving it in your bank, give it a purpose. Your money should always be headed somewhere, be it towards an investment, to the future or even to something current that could improve the life of you and your children.