When you have a family keeping them safe and secure is your main priority as a parent. No matter what is going on in your life as a parent you want to be able to afford your children’s basic needs and make sure that all the necessities are met which includes food, shelter and clothes. Also as a parent you want to make sure their lives are filled with going to school, meeting up with their friends and other little luxuries that make up their life like holidays. Most of us including children can live without luxuries but as a parent you want your children to not have to want for nothing. Any financial plan as a parent should boil down to two common aims saving for retirement, and saving for your children.
When it comes to ensuring financial stability in family life it is best to start saving as early as possible to have the best start. However to make any savings count you will need to avoid debt as much as you can. If you are paying any debt back make sure you create a debt elimination plan. List out your debts and arrange them in order from smallest balance at the top and largest at the bottom.
Then focus on the debt, putting as much money into it as you can. If you struggle to pay off the debt there are agreements like Trust Deed Scotland which enables you to make manageable payments towards your debt in monthly instalments. Once you have paid the debt off you can start to save for the future and try to avoid getting in to further debt.
Save, Save, Save
Even if you don’t have a family just yet saving money and savings should be your top priority, especially if you don’t have a solid emergency fund. When you get paid after paying your actual bills, putting away savings should be the first thing you pay off. An easy way to do this is have a set amount that can automatically be transferred from your current account to a savings or ISA account. If you don’t see the money then you won’t have the time to miss it.
Live Below Your Means
Paying off debts and saving money goes hand in hand with living in your means and even below them. Try to avoid unnecessary spending; the biggest problem for many of us is not living within our means. We are all guilty of treats, eating out and shopping when we can’t really afford too. If we all stopped spending money on unnecessary things, that extra money could be set aside for savings or for an emergency fund when unexpected expenses can occur.
Invest In The Future
Even at a young age it may not be a priority as the future seems like a long way off but it is something that approaches sooner then we like to think. If you put away money each month in an ISA for your retirement, not only will it gain interest but if you keep adding to it you could be pleasantly surprised when you do eventually retire. Once you have reached your old age, you might have sufficient funds in the form of an ISA that could help you in paying your food bills, travel cost, and any ongoing debt. Alternatively, you may also be able to use the savings towards paying the rent of a senior care community (similar to Chelsea Senior Living) in the future. Retired people usually opt for assisted living, which can provide 24-hour nursing care, physical therapy, linen and laundry service, weekly housekeeping, nutritious meals, and health programs.
Another way to invest in the future, for your family’s sake is to have life insurance (read this, if interested). If you have people who are dependent on you, it is best to have life insurance so that if anything happens, you will know they will be secure. However, you may need to research a bit before actually making a choice on what type of life insurance you may need. You could ask your relatives, friends and other acquaintances about how this is done. You could also search online or read various reviews (to know more, check trustage insurance reviews) to get a basic idea of particular life insurance.
Financially Stable Kids
Children who grow up in a family culture where the parents not only ensure that their family has financial stability but involves the kids in being a part of it, they will have a greater chance of being financially stable and independent in their adult lives. Having children who grow up to be financially stable and don’t need to revisit the parental well to make ends meet, will be the ultimate reward as a parent. Be intentional when teaching children the basics of money management as it is a key skill they will need to have for their future.