Budgeting as a mum is hard work.
Rising childcare bills, unexpected repairs, and never-ending grocery costs… Before you know it, you’ve run out of cash again.
But here’s the thing:
Mums that have to handle money can take control of their budget. With the right approach in place, real financial security is possible for your family.
And the best part?
These money management techniques are free to implement. You can have an immediate impact on your family’s finances.
Let’s go over what’s covered in this article.
- Why Family Budgets Need Attention Right Now
- Smart Budgeting Strategies That Actually Work
- Where to Find Extra Cash in a Tight Spot
- Building Your Financial Safety Net
Why Family Budgets Need Attention Right Now
The statistics are clear enough…
According to The Money Charity, 48% of UK households have no savings or less than £1,500 to support them in an emergency. Nearly half of all families have little to no financial buffer.
The problem with this is…
Lack of emergency savings means that when the unexpected inevitably strikes, families have no choice but to cover costs by taking on more debt. Credit cards and loans build up to a point where the cycle of debt is hard to break.
The thing most people don’t realise is…
Countless households across the UK have hidden assets in their homes. Old jewellery, unused items and inherited pieces could become emergency cash if needed. Mothers in particular are now considering selling jewellery to give a boost to their household budget. Cash4Gold Now explains how common the practice has become among families in the UK.
Smart Budgeting Strategies That Actually Work
Building a family budget doesn’t have to be complicated or time-consuming.
In fact, the simplest approach is often the most sustainable. Here are the fundamentals.
- Track all household income streams
- List essential monthly outgoings
- Identify non-essential expenditures
- Set realistic savings goals
The most common budgeting mistake people make is being too strict with themselves. A budget that feels like punishment is a budget that will be ignored. Set one that you can reasonably stick to while allowing yourself a few treats.
The 50/30/20 Method
A great and easy to follow budgeting method for busy mothers.
Split your outgoings into 3 categories. 50% needs, 30% wants and 20% savings and debt repayments.
Housing, food and bills go in the needs category, as well as any necessary debt repayments. Entertainment, eating out and non-essential shopping go in the wants category. Finally, at least 20% of your income should go into savings and debt repayment.
Feel free to adjust the percentages to suit your circumstances. For example, some months you might only be able to put 60% towards essentials. That’s fine.
The idea is progress, not perfection. According to Statista research, UK households have been tracking their monthly spending to adjust to difficult economic conditions. Tracking money in and out of the household is the first step to creating an effective budget.
Cutting Costs Without Cutting Quality
Making small changes can make a big difference in the end.
Here are some simple wins that could reduce your outgoings. Switching to a cheaper energy supplier could save you a couple of hundred pounds a year. Meal planning can minimise food waste and impulse purchases. Cancelling unused subscriptions can release some cash straight away.
The following are savings tips that many people might forget about.
- Cashback apps for grocery shopping
- Loyalty programmes at your usual shops
- Second-hand clothes for children
- Local free things to do with the family
Where to Find Extra Cash in a Tight Spot
Budgeting is important but sometimes isn’t enough.
When the unexpected happens, or school trips and other extras come up, most families could do with some additional cash.
The thing many mums don’t think about is…
Unused value is likely to be sitting in jewellery boxes and drawers around the home. Old jewellery, broken items and inherited pieces could be converted to much-needed cash.
Gold prices have risen steadily in recent years, so even items purchased years ago are likely to be worth more money today.
This isn’t about selling sentimental family heirlooms, of course. It’s about recognising that some items no longer have a use or purpose and freeing up that value to help with the bills.
Check out these often-overlooked items with hidden cash value.
- Broken gold chains and bracelets
- Mismatched earrings
- Fashion items you don’t wear any more
- Inherited items that just sit in drawers
The process of converting unused items to cash is simple. Have things valued by reputable dealers, compare offers and only sell what makes sense to do so. The other side of that coin is…
Other Income Boosters
There are many options to increase household income levels in addition to selling unused items.
- Flexible freelance work that can be done around childcare
- Selling outgrown children’s clothes and toys
- Renting out spare rooms or storage space
- Seasonal part-time jobs
Each extra pound earned has a greater impact when combined with sensible budgeting and expenditure control.
Building Your Financial Safety Net
Emergency funds should be the foundation of every family budget. For mums that have to keep household finances on track, a safety net is especially important.
Professional financial advisers recommend having three to six months’ worth of essential outgoings saved. This might sound like a lot.
Don’t worry.
You can start small and gradually build an emergency fund over time. Remember, consistency is key, not large sums.
Try to set aside a little each month, even if it is just £20. Over a year that will be more than £1,000. Small amounts regularly go a long way.
Where to Keep Emergency Savings
Choose an easy-access savings account to keep your emergency savings in. This way the money is available when needed but is not commingled with everyday funds.
Tip: Set up an automatic transfer from your main account to your emergency savings on payday. Out of sight, out of mind, as they say. Money you never see is money you can’t spend.
Protecting Your Family’s Future
In addition to building an emergency fund, there are other ways to financially protect your family.
Things to consider include:
- Life insurance cover
- Income protection insurance
- Child benefit claims
- Tax-free childcare
Remember also to check your pension contributions, especially if you have previously taken a career break for childcare. It’s a good idea to review insurance policies at least once per year to make sure cover is still appropriate for your family’s needs.
Putting It All Together
Effective family budgeting is about building systems that work in the long-term.
The tips and strategies covered in this article are not complicated or difficult to implement.
But they do take a little time and effort.
The key techniques are fairly simple.
- Make a realistic budget with the 50/30/20 method
- Track spending to see where money is really going
- Build emergency savings with automation
- Sell unused items for extra working capital when needed
- Review and adjust your financial plan regularly as family circumstances change
Money worries have a big impact on mental health and family happiness. Reducing the stress of managing a household budget makes a real difference to life.
Financial security is not about how much you earn. It’s about managing what you have coming in and being prepared for what life might throw at you.
Managing a family budget can present unique challenges for mums and dads. It’s a balance between immediate needs and longer-term goals.
But with the right approach, it is possible to create financial security at any income level.
Choose one strategy to implement and master it. Then move on to the next. Progress is made one step at a time. The important thing is to start on that journey towards better family finances today.
