Secure Your Family's Financial Future With Three Simple Steps

By Sara Bailey of thewidow.net
 
Parenting comes with a host of responsibilities—sometimes, more than you think you can handle. Not the least of which is your financial obligations. Yet with the right mindset and no shortage of motivation, it might just be simpler than you think. So without further ado, here are some of the best things you can do to kickstart your financial goals as a parent.
 
Get insured.
 
When it comes to financial planning, with a family to think about or otherwise, insurance is undoubtedly the smart place to start. Indeed, much is known about the myriad benefits of life insurance, and RocketLawyer notes there’s little question that the pros far outweigh the cons (if any).
 
Life insurance can single-handedly safeguard your family’s financial security in the future in the event something happens to you. It’s also a smart investment that can be utilized in many different ways. Moreover, it also plays a crucial role in estate planning—to protect your dependents and cover debt and tax liabilities, as well as ensure the fair distribution of your estate at the time of your death.
 
Needless to say, life insurance is a real must-have in your financial portfolio. But do note that not all life insurance policies are created equal. So before you buy coverage, make sure to shop around and compare offerings from multiple providers. Reach out to Wisconsin Health Insurance Advocate, LLC to help make this process easy for you!
 
Build an emergency fund.
 
No doubt, another thing you should establish in your financial groundwork is an emergency fund. This pertains to cash that you put away and can tap into in the event of, yes, emergencies. While it’s been said that at least six months’ worth of your household income is the ideal amount in your emergency fund, there are those that argue that nine to 12 months is more ideal in this day, age, and economy.
 
Regardless, there’s no doubt that everyone needs an emergency fund. Such a fund is then best ‘forgotten’ to avoid the temptation of unnecessary use. Rather, it should only be tapped in case of bona fide emergencies like losing one’s job or acquiring a non-insurance-covered injury.
 
If you tend to dip too low into your cash to have a solid safety net, set up a separate account and add a budgeting app like GoodBudget or Mint to your phone. That way, keeping tabs on spending is a breeze.
 
Save for the future.
 
Lastly, it’s never too early to save for the future, both for yourself and your children. If you're planning to become a first-time homeowner, know that it's best to start saving for the down payment now. If you make a higher down payment, you'll reduce the interest rates and decrease the amount of your monthly payments. Low down payments require private mortgage insurance, so you'll actually be paying more monthly. Therefore, you should begin looking at your budget now and decide what needs adjusting. For example, you might benefit from getting a side job or cutting down on certain areas of your spending that aren't necessary for survival.
 
While your kids may be too young for their future college education to be forefront in your mind, the truth is you can get ahead by starting now. Not only that, Education Planner explains that having a healthy college fund makes it possible for your kids to attend the schools of their choice, which, in turn, allows you to offer them a great platform from which to realize their dreams.
 
Your inevitable retirement is also one event that you should start saving for early in life. In fact, CNN says that as a rule of thumb, you should put away as much as 10 to 15 percent of your income for retirement in your 20s. But of course, there’s more than one way to save for retirement without relying on your 401(k), so explore your options and make it a key part of your financial planning efforts.
 
It goes without saying that financial concerns are bound to rear their ugly heads at any point in life. But with adequate foresight and financial planning, you will find yourself better equipped to handle whatever comes your way. What’s more, you can take comfort in knowing that your family is financially secure in the event of your absence.
 
Remember: If you need insurance assistance, contact Wisconsin Health Insurance Advocate, LLC by visiting our website or calling 414-797-3408.

Learn more about Sara's story and her upcoming book at thewidow.net
  

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