Do you have a family? Do you struggle with money? Do you spend money whenever you feel like it? If you said yes to all of these, you have a problem. You need to set up a budget to get your family's finances on track and get out of debt if you have any.
There are all kinds of debts. Some common debts of families include personal loans, auto loans, credit card debt, and any other types of debt or financing.
You need to find a way to either increase your income, decrease your spending, or do a combination of the two in order to have extra income to pay off your debt. Once you've paid off your debt, you can start funneling more of your excess income into a retirement account.
Before you can start paying off debt, you need to spend less. You need to make a budget and set up a plan to start spending less. Get your whole family in on it by setting up a family budget.
If you make a budget and your spouse continues to spend more than you planned, your hard work will go to waste. Likewise, if you continue handing cash to your kids whenever they ask, not only will you be wasting more money, but your kids will never learn to work for their money. Make them get a job and start earning their money.
Paying off debt is your first priority. Pay it off as soon as possible and save yourself a lot of money in interest. Open up a 401K or an IRA and start contributing towards retirement. The sooner you start, the more you'll have come retirement. If you set up a 401K with your employer, they might even match a percentage of or the entire amount of what you contribute, which means more free money.
If you feel trapped because you try to cut back and are still living barely within your means, take a serious look at your spending. Are you living in a house you can't afford? Your expenses are never as low as they can be if you can ever downgrade your living. Don't just look at cutting small expenses, also look to shave your big bills down.
Cut back wherever you can. Shop carefully and look for discounts wherever you can. Cut out any bills you don't need. For example, one cell phone for the entire family is more than enough. Do you really need cable? Do your errands all in one shot to save money.
