Family Financial Planning For The Future
When you are a parent, it seems like there is always some financial planning to do. Whether it be a family trip, the meal plan for the week, or just to make sure they’re all in the right kit for sports day. Getting tied up in the day to day running of a busy family household can sometimes take over from planning for the bigger things. But time is rushing on, and it is a good idea to make sure that you and your family’s future is taken care of. Unfortunately, before we know it, the children we have been raising will up and leave the nest, off to University, buying a home, or exploring the world. So here are some things that you can be doing financially now, to help prepare you for the future and what to look out for before buying a property.
Build Up Your Cash Reserves
Any financial expert will tell you that you need to build up some cash savings for emergencies. How much money really does depend on you and your circumstances. So there is no right or wrong amount. But think if you or your partner were to lose your job, how long could you survive without an income? A couple of months is usually a good route to go down, with the hope that a new job would have been secured by then.
You also never know when you might be in an accident or get an injury that will mean that you can’t be working for a certain amount of time. So although you could look for no win no fee personal injury solicitors to help in a situation like that, it is still a good idea to have some cash saved up to fall back on. So look at your budget at the moment and decide how much you can set aside each month. Then the easiest thing to do is to put it into a separate account; out of sight, out of mind!
Live Within Your Means
If you want to achieve financial freedom at some point in your life, you need to be free of debt. You can never really be financially free if you are a slave to paying off debts. Imagine going to our retirement years, but having to work more and more, as you have lots of debts to pay off. So it starts now by not getting yourself into any more debt if you have some already. Financial planning and learning to live within your means can be really tricky. But it is so worth it. Again, look at the ingoings and outgoings that you have each month. If you don’t have a budget set for yourself at the moment, then decide on one and go from there. You might have to be quite strict with yourself, but it will make a big difference.
Along the same lines, you need to look at reducing any debts that you do have. Most people will have a mortgage to pay, so it isn’t really talking about that kind of debt. But rather, talking about things like store cards or credit card debt. They can really take over your life if they get out of control. So if you have them with debt on them, cut them up, so you’re not tempted. Then work with your income and budget to be able to pay off more than just the minimum each month. It might mean some sacrifices here and there, but really, it will make a massive difference when you have it cleared off.
Open Bank Accounts For Your Children
I know some people that open a bank account for their child as soon as they have a birth certificate. But for many, it kind of becomes something that we often forget about until later in life. Getting a bank account for your children is pretty important, though. It will help to get you in the habit of saving, and putting money aside for them, but it will also help them to learn and understand about saving too. If they are given some money for birthdays or when family members pass away, it can be put into their bank account. They will get so much more from the money if it is sat in a savings account than they would if it was just sat in a piggy bank on their desk. Even if you yourself can’t pay into it regularly, it is still a good idea to get them a bank account of their own.