Planning a more secure future for your family doesn’t have to be a heavy burden on one’s shoulders. It is completely normal to worry about the financial prospects of your family and prepare for many “what if’s” that can come abruptly, be it the emergency hospital bill or house renovation costs. By building the right blocks in your bank bill or real estate value, you will certainly feel safer and more successful in your family’s future. This short guide can help you in making secure steps towards that security.
Get hold of your monthly expenses
Spending money usually comes with the principle – we buy and pay for the essentials that we need the most. However, buying this or that can easily majorly add up, especially if written down and followed monthly. Thus you could be using all the money you have and quickly buy a credit card for the bigger expenses, like when you need a new laptop, plumbing emergency, or anything around your home.
Follow regular expenses for the day, each day for a month. When doing this, pay attention to each cent you spend or give (give to children, donate, or anything alike). All of us have our small pleasures – Starbucks, a glass of wine with lunch, ordering food on busy days, or a pack of cigarettes to give you a moment of peace each day. Unfortunately, these pleasures can quickly become costly, so include them in the monthly billing list.
Plan a budget with the future in mind
When you get honest and transparent with what you spend, you have the toughest part done. It may not be easy to look at the long list of pleasures bought last month, but that doesn’t mean you’ve spent too much! The next step will be planning out your monthly, weekly, and even daily budget.
Write down the income – all of them, no matter how stable they are. The next step is to write down the necessary expenses for each month. If you are having difficulties organizing, you can always use budget templates available online. Identify areas where you can cut back the expenses and plan out the savings fund.
Pay your debts
There are maybe a few things that can hinder your plans for financial growth, but none can affect them like a bad debt. Many get mad at their loans, interest rates, and inflation and simply pay as little or even put off payments for as long as they can. That, however, not only hinders your money but also further affects it as your debt will simply continue to grow. If you, however, accept your decision and pay those off as soon as you can, you will be able to invest your money for a safer future (hopefully without loans).
It is especially crucial to pay off your debts as soon as possible, as some family issues can affect your income greatly. To deal with any family issues that can happen because of separation or death reasons, Doolan Wagner Family Lawyers recommend mediation as the cheapest and most fair option. Getting informed on your options upfront is always a smart safety measure in finances.
Get financial advice – set goals
Dealing with home finances doesn’t come easily to most of us. It is hard to go on a financial diet where you get only the necessary things. To feel better, it is best if you set a goal. That is where you should consider speaking to a licensed financial advisor.
Some of the most popular investments include, but are not limited to: savings accounts, mutual funds, index funds, ETFs (exchange-traded funds), stocks, cryptocurrencies, and good old real estate. Each of these comes with its initial investment value and potentials that vary depending on your investment, but also investment in your knowledge and ability to follow and predict the financial trends.
Purchase the right insurance for you
If you want to be certain that you have taken into account every possibility of inconvenience or misfortune that might happen, the insurance is your safest option. Off course, the emergency savings account is a good place to start, but the right insurance package will be a major help if the worst happens. The most vital insurances are health insurance, life insurance, and long-term disability insurance.
Health insurance protects you in case of any health emergency for you and your family. Life insurance will be the one to help your family if any misfortune were to happen to their breadwinner. The term life insurance is great for younger, working individuals as it will take care of all the liabilities without the breadwinner. As it is for shorter terms it will be cheaper. The whole life insurance costs more, but it usually covers more emergencies, and you can count that you will get the money back after some years pass. The maturity value is guaranteed based on your investment amount, leaving an umbrella for financial investments in the future or legacy for your successors.
You should take into account everything written here, and share it with your family. You should make a budget and set financial priorities together and start learning with your children. The knowledge about money is not taught in schools and will benefit you and your children alike. How do you plan to save money? What is the best investment in your opinion?
Author bio:
Alison Pearson is an interior design student. She is a writer and designer, and her ultimate passion is art and architecture. She is also a bibliophile and her favourite book is “The Sound and the Fury” by William Faulkner. Follow her on Twitter.
Recent Comments