If you’re a parent you might feel certain pressures to protect your family’s finances. This is normal and there are plenty of ways to make it more manageable and give you peace of mind. One of the best things to do is get professional advice, and find out all the options available. This way, you can be confident that you’ll be able to protect your family’s future finances.
It’s also important to plan ahead. The more organized you are the easier it will be to anticipate any extra payments by putting away emergency funds and sticking to a budget. If you want to grow your family’s finances, you could also consider investments. It’s recommended to seek professional advice about this too. Here are ten tips to protect your family’s finances.
Speak to a professional advisor
If you’re wondering which are the best ways to secure your family’s finances for the future then the best thing to do is speak to a professional advisor. There are certain advisors that specialize in specific areas, of course, such as mortgage advisors, debt advisors, and legal advice. It’s a good idea to get as informed as possible so you can have peace of mind.
If you’re not sure exactly what kind of information you need then, don’t worry, your financial advisor will be able to tell you what you need to do. Otherwise, you could prepare some questions to ask your financial advisor beforehand. You could also do your own research so you have a bit more of an understanding of your financial situation. You can even look up your own credit score online, for example.
With professional advice, you won’t actually need to own your research, however, as your financial advisor will be able to find out all this information for you. Together you’ll be able to devise a workable plan to protect your family’s finances for the future.
Draw up a plan and budget
Whether you choose to do this with a financial advisor or not, it’s advisable to make a detailed budget of your incomings and outgoings and stick to it. You can find templates for a budget planner online to help you out. The more prepared you are the more relaxed you’ll feel as you’ll know all the ingoings and outgoings of your family’s finances.
One of the most difficult things with a budget is sticking to it. If you’re finding it hard to stay within the same budget then it might be worthwhile speaking to a financial advisor in order to make a more realistic budget that’s more manageable. That way you’ll have peace of mind that you can take care of your family’s finances without going over budget.
Put aside emergency funds
Saving money and budgeting is just part of being a parent. It’s always a good idea to put aside some emergency funds for any unexpected costs. This way, you’ll have some security and be able to anticipate any extra expenses. Review your monthly budget to find out how much money you can realistically save and transfer this money directly into a separate bank account. If you have a separate account set aside for emergency funds with a regular standing order going in.
If you want to take the responsibility off your hands, you could arrange with your bank to automatically transfer the funds from one account to the other. This way it’s done before you start your monthly spending, and you can rest assured that your emergency funds won’t be affected. With the help of a financial advisor as well, you’ll be able to organize your savings for your family’s future.
Research types of insurance
Ensure you have the right types of insurance to protect your family’s future. These can include mortgage protection products, life insurance, and health insurance. For instance, different types of health insurance are available to you, so that if anything unexpected happens you can pay your medical bills. Find out more from TrueCoverage health insurance quotes about the most suitable health insurance policy for you and your family. A friendly advisor will be able to give you all the information you need about securing your family’s future.
Prepare for the unexpected
In order to protect your family’s finances when the unexpected happens, it’s advisable to look into what you need to know about creating a will. You can find out information about what will happen to your bank accounts, any outstanding payments, and any money you are expecting to receive in the form of a pension or benefits.
It’s sensible to set up a will to ensure your family is legally entitled to your financial assets, without this they may not have any rights. There’s a lot to consider when planning your will, so it’s strongly recommended to get professional advice. It’s not something pleasant to think about, but the more prepared you are, the more peace of mind you will have for your family’s finances.
Besides a will, you could consider other estate planning tools, for instance, trusts, life insurance, and long term care insurance. These will also help you protect your assets if the unexpected does happen. An important thing to remember is that any major life changes will affect this paperwork. This means you need to advise your lawyer in the event of a marriage, divorce, birth, or death in the family.
The government website has plenty of advice available on dealing with debt. Debt is a very common problem that affects a high percentage of families. As there are different types of debt there are also different types of consolidation plans and debt recovery. If you have a mortgage or student debts, these are considered “good debts” and there are long-term schemes in place in order to pay these off.
With things like credit card debt, you can seek professional help on the government website or a debt recovery agency. They will be able to offer you the most appropriate solution to consolidate your debts into more manageable payments. You’ll be able to find the plan that works for so that your debt won’t get in the way of you protecting your family’s finances in the future.
Budget to save
Plan your savings as part of your budget. If you’re planning on a holiday, find a way to put this into your budget, even if there’s something you have to cut out or cut down on this month. Make a space in your budget, whether it’s for holidays or to buy a car, you’ll need to reevaluate your budget to take it into account.
Diversify your investments
If you’re an experienced investor or would like to try out the stock market there are certain ways you can secure your portfolio. Of course, with investments, nothing is necessarily guaranteed but it’s a good idea to read some tips for investing. It’s always advisable to diversify your investments. This is essentially the opposite of keeping all your eggs in one basket. Separate your funds into different types of investment in order to balance your portfolio.
Ideally, a balanced portfolio should have a mix of various assets such as stocks, fixed income, and commodities. These will all react differently to the same economic event, thus giving you more options. You should also rebalance your portfolio at least once a year. Compare your investment portfolio to your ideal asset allocation. You want the right combination of stocks, bonds, and cash for your investment goals. Make changes by buying and selling shares to rebalance your portfolio.
Choose a retirement plan
It may seem like a long way off, but the earlier you start planning for later years, the better. This is another occasion where it’s advisable to speak to either your employer or an expert about which is the best retirement plan for you. They will be able to help you figure out the budget your family needs for when you retire. There are different sorts of retirement income that will help protect your family’s finances, these include employer pensions, public pensions, and personal retirement savings accounts. Your financial advisor will be able to go through all of the types of retirement plans with you to ensure your future is secure.
It’s easy to become overwhelmed by all these financial decisions that you need to make in order to protect your family’s future. The thing you have to remember in order to stay positive is that there are plenty of professionals and researches out there to help you. If you find dealing with finances daunting or stressful, speak to a financial advisor as that’s what they’re there for. You won’t need to try to make sense of all this information on your own. They’ll be able to give the peace of mind you need and help you find the best solutions to protect your family’s finances. It takes a little planning and organization, but you’ll be able to find the most suitable ways to secure your family’s finance.
CANDY TAI is a wife to David and mom of 5 with a degree in Communications. She's a native Texan (Hook 'Em Horns!) who's been making her home in the Kansas City metro area for nearly 15 years. She loves being able to shuffle her kids from their various sports activities, piano lessons, and school activities. She enjoys fashion, beauty, reality TV, and moviegoing.