For most families, it can be a struggle each month to pay all of the bills, buy everything you need, and have any money left over for extras. You should definitely make room for these 5 Monthy Expenses.
There are a few essential monthly expenses you should always make room for so your family is prepared for the future.
Even though money may be tight, it’s important to plan ahead for certain situations so your family isn’t left in the cold during their neediest times.
Here are five vital monthly expenses your family shouldn’t skip.
1. Retirement Savings
No matter what level of income you enjoy, it’s best to have a consistent retirement savings schedule set up.
If your budget is already stretched, look for ways to cut back on things that aren’t as important, like entertainment or cable television.
Nearly one-third of all Americans aren’t saving enough for retirement. Your senior years may be more difficult if you don’t save enough money now.
2. Emergency Fund
An emergency fund is another key component of any family’s budget plan. If you already have one, you can skip this step and move on to something else.
Many families don’t have an emergency fund, which could wreak havoc on their lifestyle if something terrible happens. It’s best to have at least three to six months of your family’s income saved up.
When you have to dip into your fund, be sure to replenish the cash as soon as possible.
3. Life Insurance
Life insurance is another necessity all families should consider if they want to avoid serious trouble in the case of tragedy.
If something happens to you or your spouse, you’ll need enough money to cover final arrangements and other expenses.
Families experiencing loss get even more devastated by the financial consequences of losing an income. Protect your family by investing in an affordable policy. Talk to Columbia life insurance for more information.
4. College Account
After saving for retirement, an emergency fund, and life insurance, you can begin setting up a College Savings Account for your children.
The cost of a college education continues to increase, so it’s best to start saving early. While many families may not be able to cover tuition expenses for their children’s entire education, every little bit helps.
A few thousand dollars saved can help reduce the amount of money your children may need to borrow and lower their chances of getting into serious student loan debt upon graduation.
5. Vacation Budget
The last thing your family can start budgeting for is a family vacation. Even though an annual family trip is not really a necessity, making it a priority is one way to live your best life with each other.
You don’t need to save up for something exotic or far away; you can simply aim for a budget vacation within a few hours’ driving distance. The key is to prioritize your time together to make more memories.
When you sit down and take a look at your family budget, be sure to look for ways to cover important monthly expenses that no family can afford to ignore. These costs may chip away at your leftover money each month, but they will also help your family be ready for almost anything.
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20 comments
I agree on all counts. We have a decent emergency fund set up already, so retirement gets a lot more than emergencies these days, but that’s ok by me 🙂
We add one more we pay tith every month after that we do all the things you have listed. Amazes me how many people I know don’t have life insurance. After talking to them they just figure the family or hold a benefit for us and that will cover the expense. Why should I waste money on life insurance. Selfish people.
There are a few things we have to start putting money towards in our family every month. One of these things we need to put money towards is a vacation fund. Now that our kids are older, we want to be able to let them see more of the world, and we have plans to do this by saving money for this.
I actually agree that we should set aside money for these items (Investments, Insurance and other funds) in our monthly budget. It would be good to allot a certain percentage for this items.
I have all of these except for the life insurance. I am working on getting that one as we speak. I have savings and every account that I need to in right now and we have to use it for something financially big. But I’m glad I have the money there.
This year, instead of a vacation budget, my husband and I are saving up for our post-wedding reception. We got married last year with a very small wedding. This year we are having the reception to invite our families to party.
These are great things to keep in your family budget. Budgeting for a vacation can help you keep from over-spending.
I try to put some aside for each of these things. Sometimes it’s not as much as I’d like since 3 kids come up with money needs constantly.
Indeed we should save some of our extra money so that we have some bucks to use in case of emergency and incidentals. Even for myself, i am trying to do that as well. Don’t use all your money instead save some of it for later.
I only have one more child in college and we’ve pretty much saved enough to cover his senior year. We’ve been saving money for retirement and paying for life insurance too. I think we should work on saving more for a dream vacation after my son graduates.
All of the suggestions are perfectly valid for a well balanced financial life. Being travelers, the travel or vacation budget forms a very important component. This is one area where we ensure we have proper fund allocation, of course not at the expense of the others.
These are great tips for a monthly expenses budget. It is important to have an emergency fund as well as saving for the future. Thanks for sharing the tips.
This is a great list, Alli! I love the idea of saving for a family vacation. It’s not luxury but it’s a way for couples to relax, bond with the whole family, and create unforgettable memories.
Having life insurance is also important especially if you want to leave a legacy to your loved ones. In addition to this, considering long-term care insurance is also vital today because of longevity and the rising cost of nursing home and other facilities.
Vacation and emergency funding is so important. Vacation is important because those are special memories and it’s pointless to work so hard if you can’t enjoy the fruit of your labor.
Totally agree with you. We try to out away as much as we can for out travel budget and that helps with spontaneous vacations!
I love that these are all “pay yourself first” kinds of expenses. And a travel category .. never forget to play a little! If we don’t set $$ aside for it specifically .. we can always find something else to spend it on.
I’ll be sharing this to my husband! Well said list.
I kove these suggestions. I need to start planning for my retirement, I’ve been investing my money on other things.
Having life insurance is important nowadays because it provides protection to your loved ones in case something bad will happen to you and you can also leave them a legacy. You can also purchase a long term care rider and use your policy to cover your potential long term care needs.
Great tips and glad to see vacation at the bottom of the list because saving for the other 4 are definitely more important #staycation