Balancing kids, mortgages, and expenses can be challenging, but the financial strategy below should help you free up money and start building financial stability for your future and your children.

This strategy would suit you if you’re in your 30s or 40s.

Minimalist life focus

• Audit your life ruthlessly – Subscriptions, second car, unused rooms – what opportunities do you have to cut spending?
• Declutter mentally and physically – Could a good clear out, garage sale, or tip run help you find some clarity? Even earn some money selling stuff you don’t need or use. The less you have, the simpler your life – and your families – will be.
• Reduce costly family activities – Consider the money you spend on activities, with a view to finding activities the family can enjoy together, on a budget. Do you remember board games, movie nights, or kicking a ball around in the park?

Financial strategy

• Maximise pension contributions and employer contributions (free money!).
• Invest in low fee index funds (such as with Vanguard or Fidelity) for long-term growth.
• Alternatively, make regular mortgage payments.
• Keep an emergency savings account (3 to 6 months), just in case.
• Teach your kids about money and value and show the value of minimalism as a family culture.

Your goal

Take pressure off your financial situation to allow you to enjoy family time, knowing you are contributing to both your retirement, your children’s future, and mitigating any need to depend on your children to support you in later years.

Investing in index funds as an alternative to overpaying a mortgage should still take the pressure off having a mortgage, knowing you can withdraw funds from your pension in your late 50s to cover it.