A big part of taking care of your family is ensuring that they are financially well-looked after, so that, no matter what happens now or in the future, they, and you, will be able to get by and weather the storm without having to worry about money.
With that in mind, here are some tips to ensure you have a financially healthy family:
Track Spending
Tracking your family’s spending, so you know where pretty much every cent is going is a great way to identify areas where you may be overspending so that you can trim out the fat and put more money aside for a rainy day.
Eliminate Debts
The key to a healthy level of family finances is to not have lots of debt hanging around your necks. That’s why, apart from setting a budget, the most important thing you can do is to pay down your debts as quickly as possible, and avoid getting into any more. Mortgages are fine as long as you can afford them because you need a safe place to live and homes are an investment, but other debts should be minimized where possible.
Create an Emergency Fund
Working towards building up an emergency fund that will see your family through tough times is smart. Ideally, you should aim to amass an amount that is equal to six months’ salary for any working members of the family. That way, if you lose your job, your business folds or you get sick and can’t work, for example, you will have something to see you through the storm.
Get Life Insurance
No one likes to think about the possibility of them dying, but it will happen to us all one day, and if it happens to you when you have a family to provide for, you don’t want to leave them in the lurch, so ensure that you have the best life insurance policy you can afford in place. Oh, and on the subject of death, you may also want to speak to an estate planning attorney too. They will help to ensure that your money goes to the right people in a fair way after you die. It’s not morbid; it’s being a sensible family man or woman.
Get Your Kids Involved
Giving your kids an appropriate level of financial responsibility at every age, even if it is just encouraging them to put pennies in a piggy bank or having them work for their allowance in a low key way, will make it more likely that they will grow up to be as financially responsible as you would hope they would be.
Stop Keeping Up with the Joneses
Buying stuff just for the sake of it so that you can match the spending of your friends and neighbors is a fool’s errand. If you don’t really want or need something, save that money for a rainy day, invest in your kids’ college funds, bulk up your retirement savings, and you will have the last laugh when you have greater financial freedom than those around you.
(Cover Image Source:Pixabay )