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
financial accounts.
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
filing system.
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
Insurance
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.
Sources:
https://www.onefamily.com/talking-finance/finance/how-to-make-a-financial-plan-for-your-family/
https://blog.massmutual.com/post/family-financial-budget-plan
https://due.com/blog/your-familys-financial-future/