Schools hiking their fees, transport, fuel, food and clothing prices going up and suddenly the money put away for an emergency or project you might find is woefully inadequate. And the emergency money balance that looked healthy just a few months ago is looking paltry.
This can be avoided if you
Save For School Fees
Start putting children’s school fees saving ahead of all other savings. When the new school year roles in and your neighbors and friends are sending their kids to better equipped schools, you may start to feel panic and find yourself turning to borrowing money for school fees.
Borrowing for child’s education is not a bad thing but doing it again, again? All this can be avoided by starting to save for you kids’ education if you can afford it. If you can afford to put money away for 3 months at a time. It is time to start putting as much as you can toward your kid’s education in a term deposit with high interest rates. Ask your bank what they can arrange for you and open that account now!
Take Out a Health Insurance
Coved 19 did make us all aware that out health is a matter to take seriously and no matter the age, we have a duty to ourselves and others to follow health advice and national guidelines.
An illness or accident can be very stressful if you are low on funds but with a health insurance much of this stress can be avoided. Explore the insurances that are available and that you can afford and subscribe as soon as possible.
Do not try to save on premiums by omitting vital information. Be as truthful as possible about the composition of your family and their health status.
Ultimately, taking care of your health is the best way to avoid money woes in health. The excuse that you are too busy to exercise or to cook healthy food (opting for unhealthy fast foods) for you and your children should be a thing of the past. As not taking care of your health now could translate to a lot of medical expenses in the future.
Respect Your Side Hustle Money
You have invested a lot of time and money to have some extra income and to not panic in an emergency but treating your side hustle money like a piggy bank will not bode well for you.
Too many people, since it is income from a side hustle and under the radar, tend to not respect its long-term income generating potential. And will dip into it in a very unruly manner. Yet it was started to supplement income for household expenses and not to fund wants and needs as they arise.
Treating your side hustle money like a piggy bank that does not need structure is a bad idea. Basically, this money is your emergency fund. And treat it is such. Which means open an account for it? Use it to replenish stock. Pay taxes (if any) and save for an emergency.
Even if you are starting late with just a little bit of money in a high-interest savings account, start now. Open a separate account for your side hustle. This money from your side hustle, if managed well, will one day when you are not employed or are unable to run your business be a life saver.