Protecting Your Family Financially

Want to ensure that your family is as financially protected and secure as possible both now and in the future? Check out these handy tips…

 

Live Simply

 

This might not be the most obvious piece of financial advice, but the fact is if you want to build your family fortune and secure your finances, living a simpler lifestyle will help you. When you live simply, you naturally spend less money and that means you have more funds available to save, invest and grow. That’ll be better for your family than a huge house or lots of expensive overseas vacations.

Get Insurance

 

If you have a family, you need life insurance to ensure that they are looked after financially should you pass away.

 

You also need to ensure that you have homeowners insurance, auto insurance, pet insurance, medical insurance and… well any insurance policies that you can afford that will offer your family protection should things go wrong. Insurance is there to protect you all, so use it.

Many people also need senior life insurance, as seniors have unique life insurance needs. If you’re a senior and don’t currently have life insurance, it may be harder to get the coverage you need at a price you can afford. Your age and health are the most important factors for a life insurance company, and it may surprise you to find out how expensive life insurance can be. Meet with an expert to find out more.

 

Start an Emergency Fund

 

It is so important that every family has an emergency fund; a pot of money that is available if your family’s circumstances change and you aren’t bringing in as much cash as you usually would. Ideally, you should aim to save at least 6 months worth of salary in liquid cash, so that you always have some breathing space when money gets tight, but anything you can save towards future financial emergencies will help.

 

Tackle Debts

 

The more debt you’re in, the less room you have for maneuver when times are tough and the less financially secure your family is likely to be. So, start tackling your debts by paying off the highest interest accounts first, working your way down until you’ve removed them all.

 

Plan for Your Death

 

It’s a good idea to look at estate planning and writing a will to ensure that every member of your family gets what they need and what you think they deserve when the time comes. Yes, estate litigation is there to sort out any issues after death, but it’s sensible to plan for what you want to happen now while you’re still able to have a say in it all.

 

Invest in Your Family

 

If you want to grow your family fortune and secure the future for each of your family members, investing in the stock market is smart, but you know what’s even smarter? Investing in yourself and the rest of your family.

 

Spending money on education, boosting skills and starting businesses, for example, is a really good way to give you all the tools you need to be successful in life, so do not be afraid to invest your money in this way.

 

Protecting your family financially takes time and lots of planning. It may even be a good idea to speak to an independent financial adviser to be sure that you get it right, but what you shouldn’t do is put your head in the sand. Building a strong financial foundation is one of the best things you can do for your family now and when you’re gone.

 

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Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/