Are You Preparing For Your Family’s Financial Future?

Managing your day-to-day expenses and keeping enough savings for the next big purchase or expense can take up your focus. However, if your finances are tied up in the immediate or the short-term, how will you ensure your family can stay financially healthy way into the future, even when you’re gone? Here are a few steps to prep for that far-off eventuality.

Have your “just in case.”

As a baseline, you should have the provision in place to ensure that your family is going to be taken care of if you depart a little sooner than planned. Look at the life insurance options out there to make sure that, at worst, you’re not costing your family in the eventuality that they have to cover funeral costs and the like.

Funeral costs cover basic service fees for the funeral staff and director, cash advances, and charges for merchandise and other services. The basic services fee covers funeral planning, permits, copies of death certificates, notices, and cemetery and crematory arrangements. On the other hand, cash advances refer to fees charged for goods and services the funeral home buys from third-party vendors, which include flowers, pallbearers, obituary notices, and payment for the officiating clergy, soloists, and organist.  

If you don’t want your family to worry about your funeral and finances, don’t forget to create your ‘just in case’ plan. You can have this plan in writing, along with your will, to ensure everything is in place in the event of your unexpected or sudden passing. Hiring an estate planning lawyer can help prepare your will or final wishes for peace of mind.

Secure some assets

First, you should ensure that not all of your cash is liquid while still keeping it accessible. This way, if you and the family hit an emergency, you always have options besides going deep into debt. Investing in property with the help of sites like Mashvisor is one way to ensure that you have some valuable assets that, if needed, you can sell to free up cash instead of borrowing it.

Start building wealth

Where does your cash come from? If the answer is your career, and that alone, you might miss a trick. Building wealth using the money you have already is key to building a better financial future.

But how can you build your wealth to secure your family’s financial future? You can find different investment options, such as stocks, precious metals, bonds, and rental properties, to help build wealth faster than pure cash savings. Also, you can venture into an online business, like drop shipping or selling digital products, such as eBooks. Moreover, modern investment options include cryptocurrency, peer-to-peer lending, and equity crowdfunding. In equity crowdfunding, you own a share of a startup company needing funding.

Tools like Tickblaze can help you learn the markets much better with the ability to test different investment strategies and choose the one that works best for your goals. The sooner you start investing, the easier it is to see exponential gains. Of course, there’s always a risk to manage, too.

Think about where your money will go.

Life insurance can help cover the costs of your funeral and offer some cash to those left behind to help with other expenses. However, if you have assets to pass on, you want to ensure they are passed on correctly. Working with financial state advisors like the Kraus Agency, you can ensure you know precisely where your money is going.

Make Sure They Follow In The Right Footsteps

Providing a good financial future for your family isn’t all about the assets you can cobble together for them. It’s also about what lessons you pass on. Teaching them a more financially viable lifestyle is all about training them in good habits such as budgeting, saving, using credit responsibly, and delaying gratification for long-term financial gain. Consulting a professional firm like Gudorf Financial Group, LLC, which specializes in real estate and financial planning, can provide valuable insights on passing on wealth and financial wisdom.

Know Your Options

There are tons of options out there when it comes to financing. From making more money, increasing your savings, and building up your pension. It’s essential to take the time to understand all the options available to you. And what choices only become available as you age. 

If you’re a younger family with a pretty secure income, more high-risk investments like Cryptocurrency might be worth looking into. Real estate is a better option if high-risk isn’t for you, but you still want to invest. Don’t forget to consider how you’ll finance at-home care or an assisted residential home. We all get older, and sometimes we need extra help in our twilight years. One option is a reverse mortgage loan which becomes viable once you’re over the age of 65. It could be an excellent choice if you need to finance something you haven’t accounted for and have a property in your name. 

Conclusion

The sooner you start planning for your family’s future financial success, the easier it will be to put it together when the time comes. The above tips are just a few ways to do it; you might want to talk to a financial estate planner for more.