Having children will change many aspects of your life and one area where you will notice a huge impact will be your bank balance. According to research carried out by SuperValu, 92% of mums overspend by up to €1,000 within the first year of having a baby. Many of the mums surveyed say this is because they are unsure of what they need and how to control their budget when a baby arrives.
SuperValu recently teamed up with ‘Money Doctor’ John Lowe to provide mums with easy to implement saving tips and advice.
- Plan it – The first step every household will need to take is to sit down and plan out a budget. You will need to determine how much disposable income you have (that is after mortgage, bills, food, petrol and “spending money”). If your expenditure exceeds your income then you only have two choices – cut costs of earn more. You will have to ask yourself do you really need everything you are spending your money on, and if you do then is there a cheaper alternative.
- Don’t be embarrassed – there is no shame in saving money! You may not have taken much notice of deals and bargains since your college days but now that you have children it is wise to take advantage of special offers. Use coupons and discount vouchers. Bulk buy items such as nappies and baby food that you will definitely need.
- Don’t over spend on food – Most households spend too much money on food. By controlling the portions you serve your family you could find you won’t need to buy as much food and there will be less going to waste. According to government health guidelines the recommended portion size of mash/rice is the size of a computer mouse and veg should take half the plate.
- Cut down your bank and insurance bills – overdrafts and especially those exceeding the limits should be a no-no. High interest rates, referral fees, arrangement fees and unpaid fees all take their toll on your disposable income. Credit card costs are similar so try and use it like a charge card and pay it off when the payment is due. Make sure you shop around when taking out insurance. Life, health, buildings and contents, travel and car insurance should all be compared with the best on the market.
- Savings / deposit accounts – the most important decision about savings can be summed up in one word – START! The best thing you can do when it comes to saving is save small and save often, whether it’s with a bank’s regular saver account, the post office or your local credit union. Ensure your deposit-taker is regulated – the Financial Regulator’s Deposit Protection Scheme covers you up to €100,000 per person. After that it’s a case of finding the best rate – better in your pocket than theirs.
- Cut down your household utility bills – have a look at your bills and see if there are ways you can cut costs. Simple things like turning off the lights when you’re not using them, not leaving the washing machine on all night or turning down the heating slightly can make a difference.
