All of us look for ways to make our money grow, to build our family’s fortune, and ensure that our financial future is secured. However, working on this requires research and planning. Here’s how you can start securing your family’s financial future today.
Establish your short and long-term financial goals. Being by taking an all-inclusive look at your present situation. This includes your net income, assets, debts and living expenses. After you do this, you can begin creating your long and short-term financial goals. Think hard and decide what kind of lifestyle you want to have now and then when you retire; what retirement lifestyle do you prefer to have as well as the type of education you want to provide for your children.
Pay yourself first. Start saving at least 10% of pre-tax income or more if you can. You should also pay your mortgage as fast as possible, especially during times of low interest. In the short term, you’ll benefit more from reducing a mortgage that costs you 6% compared to earning around a taxable 1.5% or less in a savings account.
Don’t become a victim of credit traps. If you’re using credit cards, dutifully pay money you owed before the interest is due. You should try to pay your credit card as soon as possible if you have money in a savings account because similar to the mortgage, the interest you earn on the savings is sure to be lower than what’s asked by the credit card company. Do not use credit cards for cash advances when possible. Normally, the interest charges are so high for these transactions, and the charges begin immediately as well. If you carry a balance on your cards, you can negotiate a lower rate with the credit card company. If you need money straight away, it’s generally cheaper to negotiate a personal loan with the bank or a credit union.
Protect your family in the event of your death. Create a Will ahead of time and update it whenever necessary. Dying without leaving a Will may result with your loved ones being in a bloody mess – one that could take many years and a whole bunch unnecessary emotional battles and money to sort out.
Take steps to protect your finances. One major part of your family’s secure financial future is to protect yourself from major financial loss. What’s bad is you can’t guarantee that there won’t be any accidents, serious illness, or untimely death. Therefore, you must take steps necessary to secure against loss of income, loss of life or loss of physical assets.
One good way to do this, excluding bank savings, is through trusted mutual fund. A mutual fund is a type of investment vehicle that’s made up of a pool of funds from investors for the purpose of investing in securities such as bonds, stocks, money market instruments and similar assets.
A financial services television commercial once said that “you can be poor when you’re young, but you can’t be poor when you’re old.” Truer words were never spoken, so take charge of your entire family’s financial future today.