So you’re young and growing a family? What’s next!?

Boy oh boy is college expensive! So are weddings for those of you blessed with a little princess or two! And dear lord that UPPAbaby stroller costs what now?! For those of you beginning that new chapter in your life called parenthood, finances can seem so stressful that many just either panic or try not to think about them. Neither of these strategies are recommended. The best thing you can do is live within your means and start saving a little bit at a time. Remember, the best time to plant a tree was 20 years ago, but the second best time to plant a tree is today. While college and retirement saving may seem first on the to-do list, take one step back and make sure you first and foremost have that emergency fund available (you know, for that flat tire or lost job). Generally, working towards a 6-12 month emergency fund is best practice in personal finance. Come up with a budget (a simple excel spreadsheet is all it takes) for your monthly inflows and outflows and make sure you stay positive. Once you have a handle on where you are, start automating your savings so it becomes out of sight out of mind. This will provide less temptation to take that spontaneous trip to Mexico when the account is flush! Of course, retirement account contributions and 529 (college savings) plans are of utmost importance, too. But first things first, get a handle on your emergency fund and your budget.

-Your Friends at Red Oak Financial Group