Living as a parent in a country as cool and laid-back as Australia is not something you can really complain about. Nevertheless, having children is the most expensive life decision one can make, no matter where they live. Even if you only have one child, you will see money basically evaporating before your very eyes. Of course, huge changes will have to be made, which is why we came up with this list of money-saving tips that will help you get back on your feet. Little by little, by incorporating all the mentioned tips, your savings total is going to grow.
Start writing everything down
Yep, that time has finally come. Annoying as having to jot down every single expense from a candy to a bottle of milk might be, it is vital in helping you become aware of your finances. Even unusual expenditures like children’s pocket money, haircuts and ice-cream should be included. How exactly does this help? Well, knowing where your money is going will help you get the picture of what it is that you’re doing wrong – it will unveil the weird and infrequent habits that tend to decimate your budget.
Start making grocery lists
Oh yes, more writing things down. It’s easy to go on a shopping spree when the only thing you are aware of is what you want. You may even think you need something, but it’s all luxury, especially with little children. Making a super organized grocery list will help you refrain from spending your money on trivial luxuries – these might be frivolous, small expenses, but they can add up to a rather hefty total and are decided on in the spur of the moment; if your kids happen to be by your side when you’re shopping, things could get even worse! Sure, buying your child that toy they are very excited about might make them happy, but this decision will definitely make your budget falter. Stick to a well-organized grocery list and reward yourself every now and then.
Do not overindulge your children
…leave that to the uncles and aunts. If your kid gets everything they want at that particular moment, a ton of bad stuff will happen. For one, you’re spoiling them by doing this. Secondly, they won’t learn to appreciate what they have – the more toys they own, the less significant and special the individual ones will be. But most importantly for the subject in question, this will only lead you to hemorrhaging more money. Overindulging your children is a slippery slope, go down this alley and you’ll soon find yourself feeling obligated to buy them toys.
Make the most out of tax breaks
Ah, taxes, we all hate them. Although they are nowhere near as ridiculously overly complex as they are in the States, the Australian tax system can still seem very complicated. However, you can use them to your advantage here! It’s time that you started deducting childcare expenses from your file. Did you know that childcare tax credit can cover as much as 35% of the child’s daycare costs? Claim your children as dependents in order to reduce your taxable income for a year, making you eligible for a larger refund. Of course, hiring a reliable tax accountant in Sydney is always a good option, as they will cover every nook and cranny.
Make extra cash
The best way to save money is to actually grow your savings. In the era of internet, you can earn money off of almost anything! If you have a hobby, a passion, or a talent, there is no reason why you should refrain from turning it into something profitable. In the worst case scenario, you’ll lose some time and get to do something you’re good at or love; in the best case scenario, you’ll end up turning into a home-based business. The most likely scenario is, however, that you’ll grow your income and, therefore, savings. Whatever it is that you’re good at – teaching, writing, designing, knitting, etc., you can cash it in nowadays!
Saving money starts with writing things down – your expenditures and grocery lists alike. Make sure that you don’t overindulge and spoil your children, make the most out of tax breaks and try and find a side gig to earn some extra money.