Keeping on top of your finances when you’ve got a big family is a balancing act that takes a while to master. The most frugal families can run into trouble, even if they’re getting everything right. Life throws you curveballs sometimes and if you aren’t ready to deal with them, you can quickly find yourself in hot water. When it comes to your finances, most of these surprises are things that you can prepare for easily. They’re also things that hit most families at some point so knowing what they are is the key to staying on top of your money. These are the things to watch as these most likely means family in financial trouble.
Low Income
This is an obvious one but you need to know how to deal with it properly. A common response to low income is to borrow money to make up the shortfalls. Unfortunately, this isn’t the way to go and if you’re borrowing every month, you need a reality check. If you can’t afford your current lifestyle on your wage then you need to cut down, it’s as simple as that. You can start looking for a better job but in the meantime, you need to stop spending so much.
Unexpected House Repairs
Nobody plans for house repairs and if you get a burst pipe or your boiler breaks down, you’ll have to pay out for emergency plumbing services, it’ll cost you around $900 but if the damage is more serious that could go up to a few thousand dollars easily. Chances are, that wasn’t factored into your budget for the month. You should always have a healthy savings account to deal with situations like this, it’s also important to make efforts to avoid damage in the first place. Keeping up with small repairs around the house reduces the chance of bigger problems emerging so it’s going to save you money in the long term.
Healthcare Costs
Health insurance is one of the biggest expenses that most families have and they can easily spiral out of control. If a family member is in an accident or is diagnosed with a serious illness, those bills are going to start shooting up. You’re also likely to need treatments that aren’t covered by your insurance and some of them can cost tens of thousands. You’d be surprised how often there are mistakes on your medical bills so always check them thoroughly, if you challenge them you can pay less.
Financial Disputes
Arguments about money are one the leading causes of problems in a marriage, and they can land you in financial trouble as well. If you and your partner have different ideas about money and how you should use it, you’re never going to agree on a working budget. When you’re working against each other, you’re more likely to make bad decisions. Always try to talk through it and make sure you’re on the same page.
Preparing yourself for these financial surprises might be simple as long resolutions were already planned out, furthermore, it will help stop you from getting into trouble in the future.