Savvy tips for mums to get their finances in shape
Being a mum is not easy, with the expectation to balance everything perfectly from the home-front to the work field. Taking care of your family as well as your own needs can be overwhelming, but with a little organisation and support, you could start managing your finances better, starting today!
1. Get your credit score in shape
With a million things to take care of – especially as a working mom – you might not have had the time to check your credit score, but with the rollout of Comprehensive Credit Reporting, this should now be a top priority on your list.
Why? Because your account information and repayment history are now included on your credit report, which will have an impact on your credit health and the approval of your future credit applications.
2. Save for the future and plan for the unexpected
To reach your financial goals, planning ahead and keeping track of your finances are vital. Write up a detailed and realistic budget to cover outgoing expenses, including utility, groceries, transport, loan repayments, insurance costs and school fees, etc.
While we’re sure that you’re already trying to find ways to save on your day-to-day activities, also consider building a savings buffer in case an unexpected emergency pops up. Set up a separate high-interest savings account and automate the payments to ensure money is being saved on a regular basis.
3. Build your financial confidence
Knowledge is power. Familiarising yourself with the different types of financial products that are currently in the market can help you decide on the right product for your circumstances and you’ll also have the confidence to negotiate better rates or deals from demonstrating financial responsibility.
4. Tackle your debts the right way
Paying down your debts does not happen overnight, it’s a long battle that requires persistence. Review your debts and do the sums to understand exactly how much you owe and start prioritising the ones you should tackle first.
If you’re experiencing financial hardship, it’s important to act immediately. Don’t be afraid to speak to your lender, as they’ll be able to help you work out a more affordable repayment plan. There are also free financial support services available to help you understand your options.
Remember, if you have to finance it, you likely can’t afford it. Make an honest assessment of what you can afford, so you won’t fall in the debt cycle again.
5. Have regular conversions about money
Do you know your partner’s credit score? The money talk can be a little awkward, but if approached the right way, it doesn’t have to be. Having the talk with your partner is an essential step to understand the goals and concerns each other has, in order to find ways to manage and build a financially secure future for your family.
Mums are always in a race against time and things could easily get missed. Have peace of mind knowing your credit reputation is protected and have easy access to your credit score anywhere, anytime for free with Credit Savvy.