Do you have any financial plans catered towards your family? This is different from having a retirement plan or some money stowed away for a rainy day.
Your family life can be financed for you and your kids to live comfortably if you have some funds set aside for it. Why should you plan to finance your family life? For at least the 10 following reasons:
? Annual family holidays
By setting aside some funds for your family, you will be able to bring your whole family travelling somewhere at least once a year without digging into your credit card. It’s best to go travelling without any debts!
? Home Improvements
You can renovate your home – patch up some of the older parts of the house and get new furniture to make your home feel brand new.
? Home Ownership
Owning a home is much more important as a family – the benefits of owning a property instead of renting a place are endless, especially if you plan to have more children along the way!
? A Bigger Family
Family funding needs a much bigger consideration when you have another baby for whom to care. The financial pressure gets heavier as each child grows up!
You’ll need some funds if you want to celebrate a wedding anniversary, a child’s graduation party or any other family celebrations, for that matter.
Education is getting more and more expensive each year. If college or university degrees are being considered, you’re going to need a lot more funding!
The journey of planning your family financials goes a long way, but these tips below will help you get started:
? Set Financial Goals
Your financial goals do not need to be complicated, but they do need to be planned in advance. Your goals will be the starting point for you to budget and save, whatever the occasion may be.
? Make a Budget
Have a budget for your expenditures. As an example, if you were to set a budget for sending your kids to college, you’ll need to consider more than tuition. You also will need to factor in the fees for dormitory stays, funds for them to travel home in the holidays, books and even standardised tests! Budgeting goes beyond the obvious expenses.
? Start Saving Sooner Than Later
Starting to save up your money for any future expenses as soon as possible is always better than trying to save up for a child only after you are expecting one. Whether the expenses are expected or not, any needed funding is more easily accessed if you have saved in advance.
? Establish a Wealth Protection Plan
When you have a wealth protection plan, you don’t need to worry too much about what happens to your children and the mortgages if something unexpected were to happen to you.
? Choose Aggressive Superannuation
With an aggressive portfolio of superannuation, your funds have greater potential to grow over the next few decades, acting as a safety net for your retirement. These funds could be used as university or wedding funds for your children later on in life.
? Don’t Be Afraid to Invest
Set up an investment account, whether it’s for yourself or for your family. Learn about stock investments or LLC investing early on, and it could become a source of passive income if you do it right!