Financial Wisdom for a Healthy Family
Financial stress can be a major source of stress in any family. With medical expenses, groceries, school supplies, and general household bills, paying for everything can become an overwhelming burden. However, if families make smart choices with their spending, saving, and insurance, they can provide a secure life for their family’s present and future. Here are some easy ways families can save money, spend wisely, and get the most out of their insurance agency.
Nurture Your Nest Egg
One of the first steps any family should take is to acquire a nest egg. According to a recent survey by Bankrate, 40% of Americans have not even started a nest egg. While this number is surprising, you do not have to be part of it. Some simple ways to set up your own nest egg include creating an automatic deposit from your checking to savings each month as well as allocating your tax return money to your savings account. You can also put away 10 to 15% of your income, before taxes, at the end of each year.
You may also find it helpful to have several different accounts, especially if you have children. If you and your spouse want to save for retirement, consider creating a joint account for you to pool your savings into. If your children need money for their future education, let each child have their own account that you can deposit money in. The key with your children’s bank account is to not let them have access until they need it for college tuition or class books.
Another must for any family looking to secure their financial situation is to purchase insurance. When looking for the best insurance agency for your family, take your time and do not jump at the first advertisement you see. By researching agencies, making a list of what you need protection from and setting a limit as to how much you want to spend on premiums, your family will be well protected from any unforeseen accidents that may occur.
When shopping for insurance, some of the best policies to buy include:
Life insurance is especially important as it can be used to pay for the remaining balance of a mortgage or used for end of life expenses such as cremation and a funeral service. These payments are very helpful if someone in your family dies unexpectedly. It can also be used to replace an income if a spouse passes away or suddenly loses a job.
Be Smart When Spending
As a mother or father, you know how easily the expenses for your child add up. From their diapers to clothes to birthday gifts and schooling, it is a lot to manage. However, if you and your family can set a budget and stick to it, you will be on your way to secure finances and less stress over money. One of the most important tasks you can do is pay off credit cards. Once this debt is gone, you can put more money into savings or begin paying off another debt. Other tricks to healthy family finances include:
- Creating a monthly expense list
- Paying with cash
- Use reusable items like washcloths and aluminum water bottles
If you are ready to get your family into a secure financial situation, you can start today. Begin your search for the best insurance agency, set up an extra savings account and start looking for small ways to stretch your dollar. A financially set family is a great way to keep your family safe and healthy.