5 Useful Tips for Effective Financial Planning

Putting your family onto a sound financial footing isn’t just smart financial planning, it’s essential.

Whether you’re starting a business, or working as an employee, financial planning is a critical issue.

It’s not just about the children that you care for until they move out, it’s your own future, too. One day, you won’t be heading to work on a commute, and you could still have thirty or so years ahead of you in which you need to support yourself. You have to be ready for that financially, which is why creating a financial plan now is so important.

 

Financial planning includes anything from hiring estate lawyers for probate to retirement planning, but both of those things have your financial security in mind more than anything else. When you are caring for a young family, time can drift away from you so quickly. It’s up to you to ensure that you aren’t allowing it to drift so far that there’s no clawing back your financial future.

If you’ve had a financial setback, this article may help.

So, let’s look at five ways you can ensure your family remains secure throughout your life.

 

#1 Create a Monthly Financial Budget

 

The starting point for your improving your personal finances is to create a personal monthly budget:

 

Action Steps To Consider

• Create a budget, even if that budget is simply on notebook paper.
• Separate your expenses between fixed and variable, and take a hard look at your variable spending.
• Take steps to cut your variable expenses each month and put the amount you save into a separate savings account.
• Consider using a budgeting app to monitor your spending
• Save 5% of your monthly gross income

 

Create your budget and stick to it.

Use this site to apply for a loan Find My Rate at Social Finance Pay off credit cards or invest in a major purchase.

 

#2 Insurance

 

It’s easy to overlook life insurance, but if you insure your car, your health, and even your dog, why would you miss out on yourself?

 

You need the security of knowing that if you died, your children and your spouse would be cared for long afterward, that they would be able to pay the mortgage and maintain school fees. Check with your employer as to whether they offer any company-paid life insurance coverage. If not, meet with an insurance agent who can explain your options.

Many people buy yearly renewable term life insurance as insurance coverage. These policies provide a level death benefit that will be available to your beneficiaries, in the event of your death. As you age, the annual insurance premiums increase. This is a simple and affordable way to own life insurance.

#3 Find a Retirement Plan

 

Whether you have a pension fund with your workplace or not, you still need a retirement fund in place to support you for the years that you are not working.

 

A retirement fund should be started as young as possible, so that you can accumulate enough money to support your home and lifestyle long after you’ve stopped working. You don’t want to spend your life paying off a mortgage, only to have to sell the house to pay for your life after work.

Many freelancers and business owners may have times when cash flow is a problem. Use this site to apply for a loan Find My Rate at Social Finance in order to cash flow your business until you can collect receivables from customers.

#4- Write A Will

 

You will need to have a will written up to ensure that your assets are distributed based on your wishes after death.

 

If you can get your will written early, you can choose your own executor to look after your estate and make decisions that match your wishes. This way of financially planning benefits your family.

#5- Plan a Possible Illness

 

Always carry health insurance, and understand your coverage in the event of a critical illness.

 

If you must pay a large portion of insurance expenses for a critical illness, you’ll need to use other assets- such as retirement funds- to cover the cost of a major illness.

 

Plan Now

 

Getting your future finances in place is so important – it can mean the difference between financial freedom and financial woe. Don’t allow woe to chase you down; you can do this now and make life simpler all around.

 

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(amazon author page) amazon.com/author/kenboyd

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/