@
wimbly11
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I'm currently in a Personal Finance Class and learning how to deal with situations similar to yours (mainly through out major project).
A tips I can think of with the knowledge that I do have (although I am sure some of it is common sense a bit)
- For the debt ($38,000), is that all one piece of debt, or different debts, and if so, what is the interest on them? It is always best to try to pay off debt first with the highest interest rate (I.E. Credit Card)
- Emergency Funds are ALWAYS a vital thing to have. Anywhere between 3 to 6 months of your living expenses, even having a small emergency fund could be a life-saver in times when you have to pull from it
- Contributing to an RRSP can be helpful too as you can use it as a deduction against your taxes next year, reducing what you will have to pay to the Government a little and starting to work towards the goal of retirement
I would say, try to make out a budget of all your current or average expenditures to help determine how big an emergency fund would be appropriate for your family. Then, although your incomes always fluctuate, try to determine an overall average that you might get in a month (based on prior months income). I would say with a debt load that size, paying that off first should be a major priority, while, if possible, even putting $25/month into RRSPs for you and your husband.
Having three children is going to/could be a major financial pain in some ways (increased grocery costs, schooling, sports, etc.) I would make sure to (if your kids are old enough to understand it) explain to them that money is not plentiful and that at times, things might have to be cut and put towards more vital expenditures (I.E. Debt). I know my family friend has 3 kids and she constantly has to explain to them this same thing.
I hope some of this information helps you even a little. If you have any more questions, feel free to ask me anytime, and I will do whatever I can to try to answer them.