Saving with a Large Family

Having a large family can be challenging financially. The need for money arises as the number of family members increases; the larger the family, the greater the need for money is. However, just because the need is high doesn’t necessarily mean that you can no longer save if you have a big family. It is true that it is more challenging and even difficult, but it doesn’t mean that it is no longer doable. Below are some tips that you can do in order to save despite having a large family.

1.) Increase your cash flow. The simplest and most immediate remedy to save if you have a large family is to increase the amount of money that is coming into your pocket. You can either find another job, start a small business, or let some of your family members do it for you. The goal is to increase the money coming in and not let the expenses be more than the amount you and your whole family is earning.

2.) Develop the habit of saving. Both spending and saving are habits, and regardless if you have a large or small family, the habit that you developed will be the one that will dominate. Since people are more prone to spending than saving, then you have to work your way in outliving your spending habits and developing savings. Aside from yourself, also develop the habit of savings of your spouse, kids, and even grand kids so they will all grow better financially. If you fail to develop the habit of saving to members of your family, no matter how large the income coming in is, you will have a hard time saving or even keep it just there.

3.) Make and follow a budget. A budget is very simple yet powerful. It reminds you of the things that matter most and will keep you from spending on things that you really don’t need. Make sure that the things that you include are the important things or if possible, only the things that you need. Making a budget is simple, following it is the challenging part but if you just commit yourself towards following it and become more efficient in saving, then it will become a part of you in no time and will be effortless in the long run.

4.) Live within your means. Make it a point not to spend more than the amount that you are bringing in. Yes, it’s tough for a huge family, but if either you added more sources of income, or you let some of your family members contribute, then it will bring down the financial burden on your part. If you have credit card, make it a point to only use it during emergencies. If you use cash when buying, then rest assured you can’t buy things beyond your means.

5.) Save gradually but consistently. Start small and let yourself adjust while developing the habit of saving. For example, if there are five adults in your home and you let each member save $1 a day, then all in all you get $5 at the end of the day. Extending it to a month, you get $150 at the end of the month and a total of roughly $1,800 at the end of a year. Sounds great right? Well, huge amounts of savings can only be achieved in time and with consistency. Of course, if you and your family members get accustomed to $1 a day, then you can increase it to $1.25, $1.5, or even $2 a day which in the long run, would speed up your savings.