A budget is a critical part of being able to quit working so you stay home with your kids. Budgeting is also the gateway to peace of mind and financial freedom. A budget will make you look hard at your finances, the ways you are spending money, it will make you examine your priorities and re-align them with your values. A budget will force you to look hard at your debt, and in the process you may just learn a little bit about yourself. To begin with, you need to figure out how you are spending your money and on what.
Surprisingly, most individuals don't know the answer to this question. If this describes you, you should start by keeping note of all of your spending for a month. It's critical not to make educated guesses. When you've finished with this, go over the list again and search for places where you can minimise costs. Begin with the large items, such as your home, automobiles, insurance, and health care.
Move if your housing payment (mortgage or rent) is too high! Why should you be a slave to your mortgage? If relocation isn't an option, think about your financial options. Is it possible to refinance at a reduced interest rate? Refinancing your mortgage might save you hundreds of dollars every month. There are several lending institutions, including your existing institution, that are eager and ready to assist you with your financial needs.
Begin by negotiating with your present lender, who will be glad to hear your story if you have been a reliable borrower. Don't go in blind; plan ahead. Look up the best interest rates for your mortgage size on the internet. Make sure you renegotiate your mortgage with no points & no closing expenses.
What about your house insurance policy? Raise your deductible if you haven't already. It's for sale! Insurance firms compete for business, and some offer better rates than others!
What about the vehicle you're driving? Is the vehicle financed with a large monthly payment or does it get poor gas mileage? Consider selling it and replacing it with a more cost-effective vehicle. If you can pay for a car in whole and avoid making payments, do so. If financing is your only choice, check around for a loan and get an inexpensive car with a low monthly cost. Refinancing your present loan is another possibility. Your bank may be receptive to the notion in some situations. Don't allow a car get in the way of you, your kids, and financial independence.
Your auto insurance is a monthly expense. Consider upping your deductibles; you don't have to go all out; see how much it will save you money. Also, review your policy to see what you're paying for. In certain circumstances, things that you don't require are inexplicably added to your insurance. Inquire about a multi-car or good-driver discount.
If you insure your house and your automobile with the same carrier, you may qualify for additional discounts. If you are no longer employed, you are probably driving less. Most of the insurance companies will give you a discount for it, but if they don't know about it, it won't happen. Consider merely having liability & uninsured motorist coverage for older automobiles (7 years or older).
Medical costs are the most common reason for bankruptcy. Knowing this implies that you would have health insurance, but you may not be required to pay as much as you are. Shop it for those of us who have our own policies. Keep in mind that these businesses are rivals. Those who have a spouse whose employer provides it should thoroughly assess it and understand what they are paying for. Some businesses provide their employees with a variety of insurance alternatives.
Know what they are and whether switching to a different choice is beneficial to you. Your health insurance is a must-have; going without it is not an option. It's eye-opening to look at your monthly expenses in detail. Reduce your spending and learn to stick to a budget if you want to be a stay-at-home parent. Don't be afraid to be aggressive with your budget; the amount of money you may save will astound you. Remember, if you really desire something bad enough, it will come true.
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