Critical Ways to Set up Yourself & Family Financially

No matter what stage of life you are in, it is possible to set up yourself & family for financially. Whether you’re a young couple, raising toddlers, or guiding your teens, you are capable of making your money go further. All it takes is learning how to budget, save money, manage finances as a family, and teach your children about money and ensure you and your family set up a financial success.

The best ways to set up yourself & family financially is to work together as a team each and every day. It’s not always easy to stay on the same page about money, but with effort on both ends, it can be done. Before we discuss the critical ways to set up yourself & family financially, take a look at the tips that will help you stay on the same page with your partner and make progress as a team toward your financial goals:

  • Talk about your money goals. Families should consistently talk about their financial goals and dreams, even with children present. Setting goals and communicating about them weekly is a great way to remember why you’re working toward to set up your life & family financially.
  • Set up a time to work on your finances together. Having a set time to sit down each week and review your spending and check in on your budget is important. A regular meeting gives you the opportunity to talk about what is on the horizon with your finances, as well as the time to practice effective communication.

The Critical Ways to Set up Yourself & Family Financially

Keep an open mind about how you can help yourself & family build wealth and do all you can now to build your own wealth. Building generational wealth can be intimidating, especially if you are the first in your family to try it, and it does take time, but the reward of knowing that you & your family future is secure is priceless.

1. Set up a budget

The most important way to set up yourself & family financially is to sit down and write a budget. A budget is a tool you use to tell your money where to go. It doesn’t control you. In fact, you control your budget. No matter how you decide to budget, take time to write a new budget each month. Some of your expenses will remain the same, like your mortgage or internet bill. However, many of your expenses change from month to month, like your electricity bill or how much you spend on restaurants. Due to the fact that some expenses change, your budget won’t stay the same month in and month out. Take time to sit down with no distractions and set up a budget that your family can live on.

Track your expenses daily. It doesn’t matter if you use an app or paper and pencil, just track where you’re sending your money. This allows you to identify areas where you might be overspending each month. It gives you the opportunity to take a long, hard look at your spending habits. Are you spending too much on takeout each month? Or maybe it’s time to cut back on that grocery bill.

Be flexible. Most budgets don’t go as planned. Don’t let unexpected expenses throw off your entire budget. Instead of giving up and starting over next month, create a smaller mini-budget to last you until payday.

Prioritize how you spend money. Just because you’re on a budget doesn’t mean that you can’t enjoy spending money on things you love. Prioritize what you spend money on and cut out the expenses that aren’t important.

2. Saving and investing to build wealth

Determine cash flow for saving and investing, and set goals to accumulate wealth. Depending on your cash flow for savings, we will begin to fund your financial goals such as emergency money, retirement, education, etc.

This is an important phase not only in budgeting and setting goals, but just as importantly in automating savings, “paying yourself”, and developing a disciplined framework to build for your future and that of your family.

3. Plan ahead

Before you go to bed, make a to-do list for the next day. This way you’ll know what lies ahead, what you need to prioritise and how best to effectively optimise your time. Having a plan before you go to sleep will also help your sleep. You won’t be trying to remember all the things you need to do and are worried you might forget.

4. Prioritise yourself

Do something that matters to you and your family. Part of making sure you are in a good spot is making an active choice not to put your needs continuously on the back-burner. Yes, help others; but help yourself and family too. If you’re questioning yourself on being selfish, then pause. Ask yourself if you’d encourage someone else to do what you are thinking or help them with it? If there was ever a moment to follow your passion, now is that moment.

5. Try new activity

Getting out of your comfort zone and changing your routine builds resilience. It also is a step towards boosting your self-confidence. It could be a big step like travelling to an unknown part of the world. Alternatively, it could be trying a new activity or simply taking a different route to work. You can start out small and work towards something big.

6. Start a family business

A family business is another great asset you can pass onto your kids. This could be as big  firm, or a small size business. Keep in mind, however, that if you want any of your children to become a part of the family business or even run it someday, you should involve them early on. This gives them the opportunity to learn about the business as they grow up and see the way you do things. Naturally, they will bring some of their own ideas to the table. Then, when the time comes, the transition to a position of leadership will be more natural and the business will have a greater likelihood of lasting.

7. Get life insurance

Life insurance helps to ensure that your life and that of your family financially in the event that you pass away. Essentially, you pay a monthly premium and, in exchange, the insurance company agrees to pay a sum of money to your named beneficiaries in the event of your death. This comes in especially handy if you share finances with someone else. Instead of your spouse or partner or children having to scramble to find a way to pay off your remaining debts, you can ensure they will be able to continue their current lifestyle, or even have a little extra to ease the burden of your death.

8. Make a will 

Creating a will according to state law guarantees your assets are handled exactly how you’d like them to be when you pass away. In many states, a will is your only opportunity to let the courts know who you want to act as legal guardian for your children if you pass away.

Having a will ensures your children are raised by someone who understands the importance of good financial habits so when your children come of age and can collect your assets, they know exactly what to do with them to build generational wealth.

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