How to save money as a larger family
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Having a large family can be expensive, especially during the dreaded Cost of Living Crisis. But the good news here is that any savings you make will tend to multiply, and, on a per-head basis, a larger household tends to be cheaper to run than a smaller one. After all, you’re all using the same heat, light, and cooking equipment.
Photo by Josh Appel on Unsplash
What should you have in mind?
Let’s take a look at some of the best ways to manage your money when the costs begin to mount.
Planning
If you’re going to relieve pressure on your finances, then you need a good idea of your incomings and outgoings. This means setting out a budget. You can do this using pen and paper, a spreadsheet, or a specialist app. It’s better to be quick and effective than it is to be precise. Once you’ve got a good overview of your cash-flow situation, you’ll be able to decide how much to spend per person.
Cut the non-essentials
The chances are good that your budget will uncover some spending that isn’t strictly necessary. This might be subscriptions to entertainment services that you aren’t using, or to games or magazine subscriptions. Cut the superfluous, keep the essential.
Buy in bulk
In many cases, buying in bulk can save you money in the long term. You’ll need to make sure that your bulk savings are actually worthwhile, though. Check exactly how much you’re saving, and over how long a period. When it comes to perishable foods, think about how long your bulk-bought stuff will be stored for.
Hand everything down
One of the great things about having a large family is that clothes, toys and other items can be handed down as they’re outgrown. This applies to friends and relatives, too: if you can set up a network of informal exchange, you’ll all end up spending less. Then there are second-hand clothes, which make ethical as well as financial sense.
Keep an emergency fund
Despite all of your best efforts, there might come a time when you need cash, quickly, without having to go to the hassle of selling anything. Keep a buffer in your current account, or make sure that your investments include assets that can be sold at short notice.
Invest in preventative maintenance
If you have money to spare, then put it into preventing more expense in the long run. A full car service might mean you suffer fewer breakdowns, much as the occasional tune-up for your boiler will make sure that you’re not spending a great deal more on repairs during winter.
Find low-cost entertainment
Many museums and outdoor locations are free to visit, and they provide much more enriching entertainment than you’ll find at the local multiplex, or on Netflix or Youtube.
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