Financial planning for single people and for couples differs from one situation to another. The same is true for family financial planning that encompasses a number of financial obligations. Expert planning is necessary to prevent families from encountering a financial crisis that could impact every member of the family or of reducing the amount of money the couple has once they have reached the end of their working lives.
It isn’t unusual today for families to have financial issues that range from reducing their ability to spend on “extras” and actually falling short on paying bills. Regardless of what your situation is now, family financial planning is essential for a secure future. Richard Brothers explains that “Families that participate in family financial planning are proven to be more successful at meeting their financial goals and saving for their future.” It is especially challenging to try and save for future emergencies or expenses like paying for children’s college while you are already struggling to keep up with your current financial obligations. Following the steps below can help you achieve a more realistic outlook on your finances and meet your goals.
- Create a Budget – Make a list of your assets and income, along with all of your regular bills. Look for areas where you can adjust how much you spend as opposed to those that you can’t. For example, your mortgage payment is a fixed financial obligation whereas eating out every day for lunch is not. Subtract fixed charges from your take-home income and see what is left over. Look for unnecessary expenses that you are paying that would be better used to put in savings. Even if you can only manage a small amount each payday, it is better than spending the money on something that you can do without.
- Start Eliminating Your Debt – Stop using your credit cards and work to pay off as many balances as possible. If you are like many consumers, you don’t even realize the interest rate on your credit cards. Pay off the smaller amounts first and then start paying the amount that you were paying on those accounts towards the highest interest bearing accounts you have left.
- Think Before You Spend – Do you really need a new car or would a good used one suit your driving needs? Do you really need that new big-screen TV? What about the new outfit that cost way more than you can really afford? Expenses May not seem significant by themselves but they can quickly add up to a lot of money that could be earning you interest for the future instead.
- Hire a Family Financial Planning Company– These professionals know a great deal about spending, saving, and investing. They can help you determine your financial goals for the future and advise you on how to balance your financial needs for today with those for tomorrow.
If you are struggling with finances for your family, you aren’t alone. Get the family financial planning services you need to beat the statistics and help your family stop stressing over money.