Effective tips for mums to take control of their finances: Money management and budgeting
Money seems quite complicated and daunting at times. It’s very much a word we deem as ‘dirty,’ we don’t like to talk about it and we most certainly do not like to discuss it.
Well, I am here to change that!
Money should be discussed as easily as the weather. Why? Maybe if we started talking about it more, we would realise that we are all in the same boat and trying to work out the best way to navigate the pennies to make them work harder for us. We could help teach each other the best strategies to save and grow our wealth.
My name is Louisa Willcox, and I am a qualified Bookkeeper and a Money Strategist for female entrepreneurs. I help women understand their money in a non-jargon way, allowing you to become financially wise, empowered, and independent.
Now, I want to share with you some tips which you can implement, giving you control over your money and allow you to create an emergency fund and ‘pots’ of money, giving you security throughout the year.
Firstly, what is an emergency fund? This is a sum of money you keep separate to anything else, which is there in case of well, emergencies. Such as your boiler breaking or your car needing to be fixed.
Having this stops you from taking out a credit card or a loan – potentially leading you to debt.
Each month pop money back into this emergency fund account. It will take time to build up but it’s worth it! Use a savings account to gain a bit of interest.
Create a budget, once you’ve identified your financial goals, create a budget that aligns with them. List your monthly income and expenses, including bills, groceries, childcare costs, and any other regular expenses. Then, allocate a certain amount of money to each category, and stick to it as much as possible – these are your ‘pots.’
Remember, self-care is vital! Especially as a mum. When creating your budget, you need to include self-care money too. You need to enjoy life and look after you – if you do not, you’ll always be pouring from half a cup. This could be a coffee out with a friend once a week or a gym subscription, it doesn’t have to be much.
It’s important to keep track of your spending, so you know where your money is going. Consider using a budgeting app or tool to help you track your expenses and stay on top of your finances. I sell budget planners on Amazon for under £10, which will last you an entire year - Click to go to planners.
When going through your budget, look at where you can cut back on unnecessary expenses. Look for ways to cut back on unnecessary expenses, such as subscriptions you don’t use or dining out too frequently. Small changes can add up over time and help you save money.
You can use the money you save to invest – did you know you can invest from as little as £25 a month? That’s what, cutting out one takeaway a week! And by investing you are starting to build up future wealth.
Have you ever considered ways to top up your money?
Now, with the online world, there is a wealth of opportunity out there! Start some kind of passive income, to bring in money from different streams.
It is so important to have passive income, as, if your businesses failed or you lost your job tomorrow, how would you pay for your bills? By having passive income, you are bringing in money from other areas, not just your main employment. And often, without having to do too much!
There is always a bit of time required to start, but the idea of passive income is that is passive. You are not working on it all the time.
Always remember communicating is key. If you have a partner, it’s important to communicate about your financial goals and work together to achieve them. Consider having regular money check-ins to discuss your progress and make any necessary adjustments to your budget.
I talk mainly about business finances as I have a huge passion in helping women understand their business money, to become financially independent.
You can learn more about this in my group Managing My Money: https://www.facebook.com/groups/managingmymoneyy