Raising a family these days requires a significant financial commitment. Our families here face the same challenges you do, trying to make ends meet in inflationary times. The good news is that, with some intentional financial “spring cleaning” and organization, you can reduce debt and even save some money.
We took a little break from tax returns to poll the team about their personal financial management best practices. Here are five of the most commonly mentioned tips:
- Create a budget: We know this is a difficult request, but try taking a month to document income and expenses as they occur. Then compare against future months, adjusting spending (or your budget) as necessary.
- Set financial goals: Whether it’s paying off debt, saving for a down payment on a house, or investing for retirement, setting clear financial goals will help you stay motivated and focused. Post them on the refrigerator as a constant reminder.
- Build an emergency fund: While the experts talk about having enough to cover 3-6 months of expenses, start with 1 month and add over time. This is your financial safety net in case of unexpected events like a job loss or medical emergency.
- Teach your children about money: Educate your children about personal finance, and help them develop healthy habits around saving and spending. Start early, and give them the opportunity to learn by making simple financial decisions.
- Review your insurance coverage: Sorry, but we don’t expect living costs to reverse their upward trend in the near future. Check your home, auto, and healthcare coverage to confirm that it’s still adequate for today’s economic reality.
Want some help? Give us a call!
Remember, financial health is a journey and not a destination. Do a little planning, take small steps, and make adjustments as needed over time to achieve your financial goals.If you have any questions or would like assistance with your family (or business) financial planning, we’re here to help.