By Justin Weinger
There’s more to successfully supporting your family than putting food on the table and making sure you have a plan for your child’s college years. Preparing fully for the future means thinking about how you can set yourself up for success from a financial perspective.
If you’ve been thinking about starting a family recently, or you’ve recently discovered that you have a new arrival on the way, it’s important to get a strategy ironed out as quickly as possible. The faster you can start taking care of your personal finances, the easier it will be to create a sense of security for your little one as he or she grows. Here are some quick tips to get you started.
The first thing to do is get rid of anything in your family’s life and finances that’s holding you back and stopping you from achieving your goals. If you’re constantly paying huge overdraft fees and dealing with the costs of credit cards, then you’re not likely going to have a lot of money left over to handle things like long-term savings and retirement funds. One of the most important things you can do for both your personal finances and your family is dealing with debt, as it leaves you with more cash at the end of each month that you can put towards your future, and the things your loved ones need.
Most people planning on starting a family will want to look into long-term options for financial growth. This could mean placing cash in long-yield strategies that will eventually pay off by the time your child is heading off to college or branching out on their own in life. [Check out appreciating assets to invest in for your family.] However, there are a multitude of ways that you can begin building your portfolio and discovering new opportunities, without having to wait forever to see results. If you have a little extra cash that’s just sitting around in savings right now, maybe it’s worth looking at things like day trading and swing trading. Although not everyone will benefit from this kind of money-making strategy, you might find that you discover a fantastic way to make extra cash outside of your standard career.
Many of the steps you take for financial planning as you prepare for a new child will be focused on the things that you can predict. For instance, you’ll want to save for college funds, retirement, and even the initial expenses of having a child. However, it’s important to make sure that you’re properly prepared for the things that you might not expect too. Life is constantly changing, and you can’t always know when you’re going to be hit with a loss of cash or a financial emergency. Building an emergency fund that’s separate from the money that you’re using for other savings strategies and investments will stop your efforts from crumbling when a last-minute emergency comes your way. Try to ensure that you have enough cash aside for around 3 months of wages, just in case.