Planning Your Family’s Financial Future
Photo by Ann Danilina
Originally Posted On: https://www.timeandpence.com/2020/07/14/planning-your-familys-financial-future/
The global health crisis has had an effect on people’s finances in one way or another. For some, a cutdown on social activities and commuting has helped them pay off debts and build up savings, while others have fallen on hard times due to being unable to work. Whether you’ve been affected positively or negatively, it’s definitely given some food for thought about your family’s finances.
Getting serious about your family’s financial future can help you make some smarter money decisions. Whatever your situation, it’s good to have some peace of mind that your finances are under control. Here are some things to think about for your future finances to help you get started.
Bring Your Budget Under Control
Budgeting is difficult for many families, but the sooner you start, the sooner you’ll find out what you’ve been missing! A budget doesn’t have to involve cutbacks or being stingy with your spending. It’s simply a way to work out what you have coming in and what needs to go out each month. Planning a budget gives you the opportunity to see where you’re spending too much, helping you bring things back under control.
There are simple things you can do to reduce your monthly budget. Haggling with utility companies is one way to start, and you can get smart about your weekly food spend by learning to compare supermarket prices. A tighter budget, even when you’re comfortable, frees up money for savings and can teach you how to live on less if your family falls on hard times.
Have Some Difficult Conversations
You never know what the future may bring, and that is why it’s important to have some difficult conversations with your partner about things like wills and life insurance. A divorce is another thing that could cause problems for your family’s finances, and making agreements upfront can benefit you when it comes to a financial consent order or disputing your assets. Bite the bullet and have those conversations now so that there are no surprises in the future.
Build Your Emergency Fund
Having an emergency fund is important. Should you be unable to work for a period of time, it’s good to know you’ve got something to live on during that time. Your emergency fund should cover you for several months, which requires a lot of saving on your part. Make the most of different ways of saving money to help you build up that emergency pot that you can save for a rainy day.
Talking about money is still a bit of a taboo subject, even in relationships. But if you’re serious about your family’s future, it’s something you need to think about. With plans in place for your finances, you can sleep sound at night knowing you’ve prepared as much as you can. We don’t know what tomorrow might bring, but at least you’ve taken steps to prepare yourself for it.