Budgeting is a crucial component of being able to quit work so you can stay home with your children. It is also your key to financial freedom and peace of mind. Creating a budget forces you to take a hard look at your finances and how you are spending your money. Creating a budget can force you to re-align your priorities and bring them back in line with your values. Creating a budget forces you to take a hard look at your debt. You can learn a lot about your self by examining your debt.
To begin with, you need to figure out how you are spending your money and on what. Interestingly, most people have no idea what the answer is to this question. If this describes you, then you need to begin with tracking all your expenses for a month. It is important not to guess. When this is completed, it is time to really scrutinize this list and look for ways to start cutting cost. Start by looking at the big ones, like your home, vehicles, insurance and health care.
If your house payment cost more than you can afford, you need to move! Why by tied to a huge mortgage or rent payment when there are other more affordable alternatives. If you can not move, then you need take a look at your financing. Many times there options available to you with re-financing and getting a lower interest rate. This could put hundreds of extra money in bank account each month. I would start with my current lending institution, and if they are not interested I promise you there are several institutions that will be interested as long as you have been paying on time. When you enter into re-negotiating your current mortgage whether it be with your current loan holder or a new one, do your best to avoid paying closing costs and points.
You need to re-evaluate your homeowners insurance. Consider raising your deductible or shop it with other insurance companies. These companies are competitors, and some will have better pricing then their competition.
How about the car you are driving. Is it financed with a huge monthly payment or does it have lousy gas mileage. Consider selling it and buying a more affordable vehicle. If you can pay for a car outright do that, and be free of a payment. If financing is your only option, shop the loan, and buy a cheap vehicle with a low payment. Another option is refinance your current loan. In some cases your bank will be open to the idea. Don't let a car stand between you, your children and financial freedom.
Car insurance can take a big bite out of your monthly budget. You should reevaluate it. What is your deductible? How much would you save by raising your deductible slightly? How much coverage are you paying for? Do you need that much. While your at it, go over your entire policy. What are you paying for and is it necessary. Some times we have things added to our policy that is not necessary and they cost money. While your at make sure you are getting all the discounts they offer. Some insurance companies will provide you a discount for having your car and homeowners policies in the same place. If you are not currently in the workforce, you are very likely driving less than before. As a result, you might be eligible for a discount. If your vehicle older than seven year, it might be worth it to dropping your coverage down to liability and uninsured motorist.
Medical bills are the number one reason for people filing bankruptcy. With that being said, it is imperative that you have health insurance. However, there is no reason you should not shop it and see what these companies are offering. In some cases your spouse is carrying a group policy. Know what you are paying for and how much. Does your spouses company offer other options that could be less expensive. I can not stress enough though that your health insurance is absolutely necessary, getting rid of it is not an option.
Really studying your monthly expenditures is a eye opening experience. Reducing your expenses and learning to live by a budget could be the key to becoming a stay at home mom. Don't be shy, get aggressive with your budget and what you can save will stun you. Remember, if you want it bad enough, it will happen. - 15224
To begin with, you need to figure out how you are spending your money and on what. Interestingly, most people have no idea what the answer is to this question. If this describes you, then you need to begin with tracking all your expenses for a month. It is important not to guess. When this is completed, it is time to really scrutinize this list and look for ways to start cutting cost. Start by looking at the big ones, like your home, vehicles, insurance and health care.
If your house payment cost more than you can afford, you need to move! Why by tied to a huge mortgage or rent payment when there are other more affordable alternatives. If you can not move, then you need take a look at your financing. Many times there options available to you with re-financing and getting a lower interest rate. This could put hundreds of extra money in bank account each month. I would start with my current lending institution, and if they are not interested I promise you there are several institutions that will be interested as long as you have been paying on time. When you enter into re-negotiating your current mortgage whether it be with your current loan holder or a new one, do your best to avoid paying closing costs and points.
You need to re-evaluate your homeowners insurance. Consider raising your deductible or shop it with other insurance companies. These companies are competitors, and some will have better pricing then their competition.
How about the car you are driving. Is it financed with a huge monthly payment or does it have lousy gas mileage. Consider selling it and buying a more affordable vehicle. If you can pay for a car outright do that, and be free of a payment. If financing is your only option, shop the loan, and buy a cheap vehicle with a low payment. Another option is refinance your current loan. In some cases your bank will be open to the idea. Don't let a car stand between you, your children and financial freedom.
Car insurance can take a big bite out of your monthly budget. You should reevaluate it. What is your deductible? How much would you save by raising your deductible slightly? How much coverage are you paying for? Do you need that much. While your at it, go over your entire policy. What are you paying for and is it necessary. Some times we have things added to our policy that is not necessary and they cost money. While your at make sure you are getting all the discounts they offer. Some insurance companies will provide you a discount for having your car and homeowners policies in the same place. If you are not currently in the workforce, you are very likely driving less than before. As a result, you might be eligible for a discount. If your vehicle older than seven year, it might be worth it to dropping your coverage down to liability and uninsured motorist.
Medical bills are the number one reason for people filing bankruptcy. With that being said, it is imperative that you have health insurance. However, there is no reason you should not shop it and see what these companies are offering. In some cases your spouse is carrying a group policy. Know what you are paying for and how much. Does your spouses company offer other options that could be less expensive. I can not stress enough though that your health insurance is absolutely necessary, getting rid of it is not an option.
Really studying your monthly expenditures is a eye opening experience. Reducing your expenses and learning to live by a budget could be the key to becoming a stay at home mom. Don't be shy, get aggressive with your budget and what you can save will stun you. Remember, if you want it bad enough, it will happen. - 15224
About the Author:
A desire to be home with her baby moved Tracy Martin to discover ways to make it happen. Visit her website where she helps women discover ways to save money and make money so they can be home with their kids too.
