The Best Financial Advice For Big Families

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Every big family needs financial advice on occasion. Here are my best tips as a parent of four.

We always get asked how we are able to afford our lifestyle, considering the fact that Nate quit his job and we are a big family of six. The truth is, we are only able to do this because we don't spend carelessly.

I am a total minimalist, and saving money on things that I can is so important to me. This can help your family upgrade the quality of life you live, say goodbye to your money problems and put an end to debts – even if you are currently living paycheck to paycheck.

Live On One Income

This is one of the best pieces of financial advice I have ever gotten. It's not the easiest thing to do by any means, but Nate and I have managed to live successfully with this mindset since college. One of the major reasons people turn to a minimalist lifestyle is so they can save and improve the quality of their life. To do this, sometimes sacrifices need to be made.

If both you and your partner have jobs, it's good to at least consider living on one income. Viewing life through this lens helps you get a handle on your finances and can help you sidestep tragedy if someone gets laid off or becomes ill and can't work. Living out the one income lifestyle while you have two simply means setting aside one person's income in the savings account, and using the other for daily expenses.

Even if you have multiple streams of income, decide how much you can pay yourselves every month. Then, stop spending the minute you max out that amount until the next month. Planning your month in advance will make sure you don't run out of money before you run out of days.

Buy A House

This might seem like a HUGE financial leap, but trust me. It feels better than being at the behest of someone else's rental management, and it's a smarter decision overall put money into something you own. Plus, it ensures that you have a safety net in case you need money in the future or decide to leave a home to your children.

We bought a house a month after our second son was born. Back then, it definitely felt like it wasn't great timing since we had just started a new family. All financial signs told us that it was the bottom of the market, though. So we took the leap, our home gained a TON of value, and we were later able to sell it for a profit that allows us to live without a mortgage having paid off our current home in full.

Property almost always increases in value – IF you have patience. For us, it was a great investment. It felt really good knowing that we were securing our future.

Make A Budget And Stick To It

If you must apply only one piece of financial advice, always remember that consistency is as important as anything else. Attempting to save really doesn't make sense if you aren't going to be consistent with it.

Make a budget, feel free to stretch your income as much as you are comfortable with and always be realistic. This is to make sure that the budgeting goals you set for your family are achievable and doable.

A budget helps you keep track of how much you will be spending every week or month and what goes where.

With a budget, you are able to manage your money better, save more and prepare for the future of your family.

Do Not Spend Money That You Do Not Have

I wish I could shout this louder and help you realize that as much as credit cards and loans can be helpful, most of the time it will serve as a trap to get you into more debt. If you are trying to improve the quality of your life, DEBT is a word you want to avoid.

If you ever find yourself in a situation where using a credit card or getting a loan is unavoidable, try to negotiate interest rates with your bank. Getting the lowest interest rate possible is crucial in helping you payback borrowed money as quickly as possible.

Any interest rate above %10 is considered REALLY high, so always keep that in mind.

Create Multiple Streams Of Income

This is said to be the major reason why the rich keep getting richer and the poor, poorer. Rich people know not to put all their eggs in one basket. I completely agree with this sentiment.

Creating multiple streams of income allows money to flow in from different sources and channels, no matter how small it is.

Having income come in from different channels enables you to do more with your time and live a life of better financial freedom.

If you already have a very busy job, try finding a side hustle that you can do online or offline in a time frame that works for you. If you're savvy, you can also invest in a business and earn returns every month through interest.

Save, Save, Save!

This is one of the best financial advice you can ever get!

You can never save too much! When you get an unexpected flow of cash, make sure to save most of it! Because this money came unexpectedly, the urge to blow it all can be hard to resist. Use it first to pay off debt, second to invest wisely in your future, and lastly to treat yourself if you need a break or a pick-me-up – but that should never be your go-to instinct right off the bat.

If there is ever anything extra, be sure to put it away. When you have saved enough that you are able to invest into things that will guarantee you a better financial future, THEN you will have the capacity to reward yourself with experiences that you have earned.

There is no magic formula to acquiring financial wealth overnight. Saving and investing wisely should be a lifestyle – not a sporadic activity.

Have ever applied any of this financial advice? Which approach works best for you, and which ideas are you excited to implement?

Are You A New Parent? Here is My Top Financial Advice For New Parents!

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