Episode Details

Financial Planning for Your Homestead

Creating a Homestead Budget

You need to start with a detailed breakdown of common expenses, including animal feed, seeds, equipment, and utilities. Don't leave anything off the list, including household expenses so you know how much you have to spend on the farm and what you definitely don't have.

Some of the expenses that you need to plan for are recurring costs like veterinary care, maintenance, and supplies. We spend about $200 a fortnight just at the stockfeed store, and that covers chicken, goat and dog feed. The horses are currently being fed, other than the occasional biscuit of hay.                                              

Another cost that can blow the budget very quickly is the costs associated with animal health, vaccinations, and preventive care. For a while last year I was joking that we couldn't get out of vet visit under 2K. 

Don't forget to explore budget-friendly ways to provide quality feed and shelter for livestock. If you can grow pasture like we do for the horses, cows and Angora goats that will absolutely bring costs down. 

I say it all the time to people, know your numbers! Don't guess how much something is going to cost, know how much. It will save you unwanted surprises.

Setting Homestead Goals and Priorities

Firstly you need to identify your long-term and short-term homestead goals.

Is this just to save money on living expenses or is your intention to go into business? 

Do you have a mortgage? Are you urban or already rural? 

Once you start, will it be a part-time hustle or are you going full-time? Do you have off-farm employment?

Prioritize your budget based on income in, versus income out. I will keep saying know your numbers! 

If you have land already, what major projects do you need, and how will you pay for them? If you don't have land are you going to start urban homesteading first? 

Tracking and Adjusting Your Budget

I really love the online systems that sort finances straight from your banking account into payment types. That being said I am hopeless at using them.

I actually prefer a spreadsheet or Google Sheets version, to keep accurate records and then monitor expenses and income.

Don’t just track but analyse the budget's performance and make necessary adjustments. If what it costs to make a bar of soap equates to a $10 soap bar, it's probably not worth it.

It reminds me how gardens joke that they grow tomatoes and they cost more than store-bought ones. Personally, there is something that's still worth it for me to have the home-grown version. My pasture meat birds taste so good that you really can't compare them to store-bought.

Saving and Investing Strategies

Depending on your age, you do need to consider what will happen when you want to retire. For Australian's this is your superannuation, in USA I believe it's 401K fund. 

Diversifying your income and assets is the best strategy I have been made aware of. Don't have all your eggs in one basket. Share and stocks are good solid investment strategies for the homestead's future. I have also dabbled in Cryptocu