What You Can Do to Prepare for Your Family’s Future…

- April 27, 2021 -

WORDS: Kristin Louis

The majority of us work hard for our futures, with the overarching attention on survival, followed by happiness. Owning a house, starting a family, and paying off your student debt are all benchmarks that can help set you on the path toward future success. However, life has an unpredictable way of occurring, which is why it’s important to have contingencies in place for when the unexpected arises.

Age-Old Shift in Our Priorities

As we get older, our priorities shift, as do our financial considerations. This shift means that the things we choose to save for can change as we begin to plan for the future. The difficulty lies in finding the right balance between long-term and short-term financial goals and understanding what milestones will keep you on track. 

By assessing your short-term objectives now, you won’t run into any situations in which you have to sacrifice your retirement savings to secure a down payment on a car or home down the line. The key is to start sooner than later on addressing what your priorities are. Although it can be difficult to think about long-term financial needs when you’re mostly focusing on how to pay next month’s rent, future you will thank present you for not being so short-sighted today. 

When looking for opportunities to improve your financial future, one of the best ways to achieve success is by investing in yourself. An amazing tool to help you on this journey is an MBA. This type of higher education can increase your salary significantly and also teach you important skills that can impact your corporate career trajectory. These skills can also help to inspire and help your family grow as you become a leader in business.

When ‘Me’ Becomes ‘We’

Having a family changes you in ways that you never thought possible. Instead of worrying about the things that impact you individually, you have to take into account the needs of your children and spouse, especially when it comes to their future. You’ll want to make sure your children have the necessary tools to succeed in life, and these tools begin and end with their education. 

As student loan debt in the United States continues to swell, you can help your children avoid being drowned in educational debt by setting aside money to help pay for their education should they decide to attend college. You can set up co-owned savings accounts to help instill the principles and practices of saving and spending money. It’s also never too early to think about your children’s eventual retirement by setting up a custodial IRA. The upside to a custodial IRA is that when your children are old enough, they can make withdrawals to help pay for qualifying educational expenses.

Preparing for Life After Death

We like to think that we’re prepared for every life event, but tragedy can still strike unexpectedly. Although the topic can be sensitive and uncomfortable to discuss, writing a will is the best way to protect your family. By writing a will, you’ll be able to determine how your assets are divided. More importantly, you’ll be able to designate who is responsible for caring for your underage children. 

It’s also important to look into life insurance to avoid leaving your family or next of kin with large bills (like a mortgage) or medical expenses in the event of your passing. Life insurance will provide for your family, but it can get complicated. Do some thorough comparison shopping online to find the best policy for your needs.

Because our priorities evolve as we age, it’s important to have provisions in place to better prepare you for the future. It’s good to set goals, but they don’t do enough unless you take action while also planning for the unexpected. Whether it’s setting up a will to protect your family, planning for your children’s future to help them succeed, or outlining your short-term-versus-long-term goals, planning for your future is essential. The sooner you start, the better off you and your family will be. 

Related Articles