Are Family Dynamics Costing You A Fortune?

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With Australian cities now ranking as some of the most expensive places to live worldwide, it’s no surprise that you might feel like you’ve been left far behind in the financial stakes. It’s important to remember that it’s never too late to take control of your finances.

While seeking help from a debt relief service is a good first step, don’t underestimate the importance of small changes to reduce your day-to-day spending as well. And to that end, it’s worth understanding how your family dynamics can play a part in gaining your financial freedom.

Closer together

In many cultures worldwide, it’s perfectly normal for several generations to live together, or at the very least, to share large parts of their lives. In Australia, our family life tends to be more fragmented, with siblings generally living separate (and even competitive!) lives once they move out, marry and have children.

There’s plenty to learn from other parts of the world, however. While we’re not suggesting you should all be living under the one roof, working hand-in-hand in even the smallest of ways can have a significant impact on your finances.

Food and living expenses

If you do live in the same town or city as siblings or other family members, look at ways you can share everyday living costs. If you both have children of a similar age, you might share child caring to help save on formal childcare costs.

Bulk buying food and other household items is another very simple way that you can start to save money every week. Boxes of fruit, vegetables, canned goods or other long-lasting pantry staples may be significantly cheaper if purchased in bulk and distributed between households. Have a chat about your spending with other family members to see if there’s an overlap you can take advantage of.

Sharing services

Another simple strategy to save money is to look to family first if you need anything around the home, be it a particular item or something repaired or renovated. Before heading to the shops for a purchase, ask family members first in case they have another of that item that they no longer need. Setting up a barter system can be a great way to save on spending, and also minimise waste.

For repairs, renovations or anything else that you need doing, always consider the skills in your extended family. If you have a niece or nephew, uncle, cousin or anyone else who’s a carpenter, builder or accountant for instance, look to them first before outsourcing. Sharing services between family and friends is a great way to build a cost-saving community.

Investing wisely

If you want to invest in a property but can’t afford to get a foot on the ladder on your own, sharing the purchase with a family member might be one way to benefit both of you. This can make the deposit, repayments and other ongoing costs much more feasible. Obviously, any property investment requires thorough research in terms of the area, rental demand, and ongoing costs.

A shared property investment also calls for a documented agreement to set out the terms of the investment, and for selling further down the track. With the right terms and protections in place, sharing an investment property is perfectly doable.

Back on track

Working with your family can help save you money in a number of ways. The important point to remember is that taking that first step is essential if you want to regain financial freedom.

We know that everyone is different and we’re here to help! We’ll take the time to get to know you, understand your challenges and treat you as an individual. Get in touch with us and start your new financial direction today with our proven debt solutions. Call us on 1300 368 322, start an online chat with us or fill in the contact form below to arrange a call back.

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