Once you start a family, you want to protect them in any way you can. One of the best ways to do this is by financially preparing to protect your family in the future. Your finances will get much more complicated once you have a spouse and children. If you want to keep your family safe financially, start doing some financial planning for your family's future using the tips below.
Set Goals For Your Family
It's difficult to have something to work towards if you don't set up goals for yourself. Planning for your family requires a couple of long-term goals. You have to decide what you want to accomplish in the future. To brainstorm about some goals, take a sheet of paper and start writing down any goals that come to mind. Sit down with your spouse and talk about any goals you two may both have. A few questions to start discussions are:
● Where do you see your family in 5, 10, 15 years?
● What do you want your lifestyle to be?
● When do you want to retire?
● What assets do you hope to buy?
● What are your goals for your career?
● What do you want to provide for your children?
The more in-depth you are about your goals, the easier it will be to achieve them.
Organize Your Finances
To know how to meet your new goals, you have to have a great understanding of your finances. A few things to do to start organizing your finances are:
● Make a list of all of your
Include all of your checking accounts, savings accounts, credit cards, retirement accounts, investment accounts, brokerage accounts, and any other financial accounts you may have. Write down all of the balances and record all of the login information in a safe place.
● Create a list of all of the
debts that you owe.
In your list, write them in the amounts smallest to largest, then a list of your debts from highest to lowest interest rate.
● Set up a paper and digital
Use these systems for all of your financial statements, documents, and records.
● Go through your bank and
credit card statements.
Going through these statements will allow you to see how your money flows in and out of your accounts. You can use this information to set up a monthly budget.
Pick the Right Insurance For You
Insurance is one of the most important pieces in protecting your family financially. Having good insurance policies can help take care of your family in the case of a sudden accident. There are three types of insurance you want to consider having:
● Health Insurance
Having a good health insurance policy can protect your family from financial hardship in the case of a medical emergency or an accident.
● Long-term Disability
You never know if you could end up with a serious illness or experience an injury that can keep you from working for several months to a year. Long-term disability insurance can help replace your income while you recover. While you may think you don't need it, it's better to be safe than sorry.
● Life Insurance
You and your spouse should both have life insurance policies to take care of your family in the case that one of you passes away. It's smart to take out a life insurance policy that is ten times your annual income.
If you need help with financial planning for your family's future, contact us at Genesis Financial Group. Our advisors will be able to help you make the best choices for you and your family. Give us a call today to get started.