Budget Tips for Money-Savvy Families

Financial stress can be a major burden, and it can be a challenge to manage when the cost of living continues to rise. If budgeting is a challenge, we have some tips that can help. While everyone has unique circumstances, there are a few things that you can do and adjust in the longer term to help keep debt to a minimum. Building better money habits takes time, but small changes can make a meaningful difference.

Here’s how to get started:

Do the maths

Before you get into where you can trim outgoing money, you’ll need to have a look at what you’re spending and where it’s going. When you have debts  it’s a good idea to have a look at how much money you have coming in from your job, along with how much needs to go out every week on things like rent or mortgage payments, groceries, and transport. From there, you can figure out how much you can feasibly pay towards your debts.

If maths isn’t your strongest subject, don’t worry, there are plenty of tools that can help you. Check out something like MoneySmart’s budget planner. You’ll need your bank statements and information regarding what you owe, and from there, you can get a clearer picture of what’s going out, coming in, and how far off you are from getting a balanced budget.

Consolidate your debt

Some people consider debt consolidation as a way of combining eligible debts into a single loan. Whether this is appropriate depends on your circumstances and the features of the new loan. Whether you have credit card debt, or another personal or car loan, you’ll likely have different interest rates and fees across each. If this is the case for you, debt consolidation is one option.

Rapid Loans offers secured personal loans from $2,001 to $45,000 that may be used for debt consolidation, subject to our credit eligibility criteria and approval. Before consolidating debt, consider the loan features, fees, charges, repayment period and total cost of borrowing before deciding whether to apply. Consolidation loans are often secured against an asset (such as a vehicle), which means the asset may be at risk if you cannot meet repayments. You may also pay more interest over time if you extend your repayment period.

Sell assets 

While it may be hard to think about selling your family home or new car, if the pressure is really on, it may be an option to consider. MoneySmart explains that it is better to sell your home on your own terms than for the credit provider to sell it.

Apart from large assets, another way to put more money in your pocket is by clearing out your drawers and cupboards, by selling your used items online or holding a garage sale. You know the saying “one man’s trash is another man’s treasure”.

Apply for government assistance

It’s also worth taking the time to look into the different government assistance options available (e.g carers, parents, guardian assistance) on the Australian Government’s Centrelink website, or if you’re having a baby soon find out if you can receive parental leave. Even modest additional support can help ease budget pressure.

Use less energy

Another major household expense is electricity consumption, which happens when the kids leave everything from the lights on to the TV blaring. If you have young kids, consider rewarding them whenever they turn off their tech gadgets. If you have a gas stovetop or your home has a gas-powered hot water heater, those bills can also add up.

While updating or changing appliances is expensive, it can be worth comparing different utility providers. Many will offer special deals to new customers, or you can also call your current provider and see if there are any offers for being a long-standing customer. There are also a range of rebates available for things like gas and electricity bills, helping reduce or offset some of your ongoing monthly bills.

Another way to use less energy is by having electronic free nights, which is a great way to get back to basics and play board games and trivia as a family.

Car pool

Is your vehicle using more fuel than you would like?  Speak to other parents in your area and organise a car pool – this can save you money at the pump, as you’ll use less petrol.

When you need to fill up, at your compare local petrol stations in your area and keep an eye on petrol prices. Signing up for certain loyalty programs often gets you a few cents off per litre, and when fuel is lower, it’s a good idea to get a full tank can help you make the most of it.

Change your household habits

Having a look at non-essential household purchases can also help. Things like subscription services that you rarely use can add up over time, so checking over your bank statements to see if there are any you’ve forgotten about can save you that little extra each month. When it comes to groceries, shopping around can also help! Checking the deals online and stocking up on basics when on special can mean a little more money in your account at the end of the week.

If you’re considering debt consolidation, Rapid Loans offers secured personal loans from $2,001 to $45,000, subject to lending criteria and approval. If you’d like to learn more about our loan products or the application process, contact our team or apply online.

This article provides general information only and is not financial advice. It does not take into account your personal objectives, financial situation, or needs. You should consider whether the information is appropriate for your circumstances and seek independent professional advice if needed. All applications are subject to Rapid Loans’ credit eligibility criteria. Approval is not guaranteed. Fees, charges, terms and conditions apply. Rapid Loans Pty Ltd holds Australian Credit Licence Number 388847.