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Top-tier ways to secure your family’s financial future

purity muriuki

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You are providing for your family today, but let’s face it, you will not be around forever. Therefore, it is up to you to secure your family’s financial future (with or without you) so that they can overcome health expenses and the surrounding trauma.

You can’t be financially stable overnight. It is a continuous process that needs careful planning, financial management, and lifestyle choices.

To begin with, here are five simple ways to help you do that.

  1. Budget your expenses

The first step, no doubt, is to budget your expenses. Look at what you’ve got coming in, how much goes out, and how you can optimize them both.

Gather all your sources of income and split your expenditure into fixed and variable or discretionary and non-discretionary, whatever helps you budget better. You can use apps or software to help you in the process, but make sure you list all of your expenses, however insignificant they seem.

This will give you an idea of all your unnecessary expenses and help you limit them. This, in turn, will allow you to invest the excess into your family’s financial future.

  1. Set defined goals

When you write your budget, you also know how much you can save up in a month, at least an estimated amount. But to optimize your savings, you must have a long-term plan and defined goals.

You may want to bid in shares or start an emergency fund, save it in a high-interest account, or invest it in property – but before taking any step ahead, it’s important to first research the asset class and its effects on your financial position.

This research is only possible when you have defined goals for your savings. Apart from that, it also keeps you consistent with the savings plan.

For example, if your goal is to save X amount by the end of the year, you need to save Y each month. You’ve planned to spare this amount as a down payment for your family’s dream home – so whenever you see your monthly expenses rising, you will feel the itch to cut it down because you’re now motivated by the “dream.”

  1. Get the debt off

Bad debt is the biggest obstacle to healthy financial planning; you want to eliminate it before anything else. With high interest, car loans, student loans, health bills, etc., are bad loans, and you must repay them as soon as possible.

You can read about different approaches online and follow whatever you deem appropriate. But ensure you don’t begin any “savings” plan until there’s no debt on your shoulders.

  1. Invest in good life insurance

As awkward as it sounds, insurance is one of the easiest ways to secure your family’s financial future.

Buy health insurance that covers a variety of life-threatening diseases and long-term disability that might affect the breadwinner’s ability to earn. Life insurance at least 10 times your annual income should be a wise choice.

For example, Australian Unity’s Health Insurance covers in-hospital treatments, accident covers, and emergency ambulance charges, allowing you access to over 500 hospitals across Australia.

  1. Get financial advice

If all of this seems extremely confusing and you can’t think straight amidst all the advice thrown at you, get an expert opinion on moving forward.

Consult someone who is certified and licensed so that they can look at your figures closely, hear about your goals, and help you plan a custom strategy to achieve them.

Even though this sounds daunting, it is better than flapping around with no sense of direction. But, unfortunately, it will lead to a financial disaster in your later years.

Concluding Thoughts…

There is no one-shoe-fits-all way to secure your family’s future. Everyone’s wealth pool depends on their income, expenses, and goals.

But what is important is to prioritize financial planning and your family’s future. Then, map out a way to reduce your family’s dependence on you – and that will be the best gift you’ll ever give them.

 

 

I'm a passionate full-time blogger. I love writing about startups, how they can access key resources, avoid legal mistakes, respond to questions from angel investors as well as the reality check for startups. Continue reading my articles for more insight.

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