A guest post written by Sara Bailey from Thewidow.net
Whether you’re a parent-to-be or already have kids, it’s never too late to start financially
planning for you and your family’s future. This can be done in various ways, including creating
an emergency fund, setting money aside for child care costs and by including a will or
beneficiary form to your life insurance policy. Getting a jumpstart on financial planning will not
only ensure financial security, but may also create a stress-free environment for you and your
family as well. Below is a guide on how to financially plan for your future.
Create an Emergency Fund
You never know when an accident or an emergency situation may occur, so it’s important to
prepare for such situations through an emergency fund. A good rule of thumb is to have at least
three months worth of financial security through a separate savings or checking account. If
you’re expecting a baby soon or for the future, consider setting up an emergency fund as soon
as possible. This will not only give you a peace of mind, but it will also allow you to start
accumulating money over a longer period of time. You can also check with your bank to see if
you’re able to receive any form of interest on a savings account.
Set Money Aside for Child Care Costs
The cost of raising a child can be expensive, so it’s important to calculate how much money you
need to set aside. This can be done through creating a spreadsheet of your budget, including
how much money you make and how much money you need to set aside for expenses like:
● Food
● Clothes
● Diapers
● Emergency Fund
● Savings
● School Costs
You should also consider aspects such as medical and housing costs, which can be costly, but
necessary expenses. To save money on housing costs, consider moving to a different location
or downsizing from a home to an apartment or condominium. There are also various medical
plans for you and your family to consider, which may vary in cost. It’s also important to spend
less than you make in order to set aside enough money to cover such expenses.
Consider a Will or Beneficiary Form
A will or beneficiary form will ensure financial security for you and your family should a life-
altering event occur. This can be updated or added through life insurance policies, annuities or
retirement accounts. You can choose how much of your assets will be distributed to you and
your family by discussing your options with a lawyer or an attorney.
Calculating the Net Worth of Your Home and Assets
It’s important to know the value of your home when calculating how much your assets are worth.
This can be done through various online calculators. Once you find out the value of your home,
you can then calculate the value of your assets. Be sure to include other aspects such as:
● Liabilities
● Value of home
● Value of car
● Investments
● Funds in checking/savings accounts
Knowing the value of your home and assets will not only put you in a better financial position,
but it may also allow you to sell your home or such assets more easily.
To ensure the financial security of you and your family, consider the above steps as well as
speaking to a financial advisor. While it’s important to spend less than you make, it’s also
equally important to outline your budget and distribute your funds between pertinent aspects,
such as food, housing bills and medical costs. Make sure your future is stable by planning
ahead so you can set you and your family up for financial success.
You can contact Sara directly at Thewidow.net | info@thewidow.net
Photo Credit: Pixabay.com