Having expensive homes, cars, and gadgets can mean having an improved and better family life. However, some people find greater fulfilment and satisfaction from the quality of their family life than from the quantity of the things that they own. They believe that buying more things means less time to enjoy life with their loved ones. Nevertheless, there are many ways on how to take care of your family best and improve their life while securing their financial future, bringing yourself a lasting fulfilment.
• Set your financial goals.
Consider your assets, debts, net income, and living expenses while setting both your short-term and long-term goals. Choose the lifestyle that you would like to enjoy from this day forward until you retire. Also, think about the lifestyle you are expecting to have after you retire. What kind of life would you like to provide for your kids?
• Get insurance for protection.
Now that you have a clear idea of your present situation and your expectations for the future, you should get health insurance card to protect your assets during medical emergencies. Get a financial program to assist in case of any financial loss. Nobody knows what the future may bring and sometimes along the way, situations like accidents, serious illness, or an early demise happen. So, it is best to get insurance for loss of life, income, and physical assets. This provides future financial security for your family.
• Pay all your obligations first
Save 10% on pre-tax income. Try to pay off your mortgage as soon as you can, especially, during times when the interest rate is low. This way, you will reduce a mortgage, which costs 6% rather than earn a taxable 1.5% at the most in a savings account.
• Avoid being credit trapped.
While using credit cards, pay the amount which is due before the payment date. Try to pay your credit card bills right away with money from your savings account. The credit card charges a higher rate than the interest earned by your savings account. Also, do not use your credit card for cash advances since their interest charges are higher. Instead, opt for a personal loan with a very low interest.
• Make a will.
A will can let you set your affairs in order and give you piece of mind. Even if you are in good health and do not plan to retire yet, you can prepare a will. In the event of your early demise, a will can protect your family. This will determine how your properties will be distributed.
With these principles, you can feel secure that your family will continue to have the life you want them to have in case you are no longer around to take care of them. You can be assured that they will live a good life and have a bright financial future irrespective of what happens