Advice designed to help manage the responsibilities of busy family life.
Regardless of the size of your family or the life stage you are in, there will always be expenses. Programs and lessons for the kids, saving for college, buying a new home and family vacations can seem overwhelming and hard to plan and budget for. The key factor in being successful is regularly evaluating your short, medium and long term goals that you put in place earlier in life and adjusting your spending saving and budgeting habits to meet those goals. Even through all of the demands of family life, it is important to make progress in building your long term investments.
There is no doubt that this is a demanding time in life. That is what makes sound financial management a crucial element in your formula for future financial stability. The following are tips and tools HHSB recommends to aid in making the best out of this challenging stage:
A great time to start saving for your child’s college education is preschool or before. This will allow you to build a very realistic fund by compounding your investment over time to help ensure your child’s opportunity for higher education. This is a very important aspect in helping to secure a future for them, and a benefit of starting very early in a child’s life is that you don’t have to save as much per month to accumulate a good fund. HHSB has options to assist you in getting the best long term investment out of whatever funding you have available.
You need to start early and steer your life in a direction of such financial stability that you will not have to worry about income when it is time to retire.
- Calculate how much you will need to save
Basic tips in saving for retirement:
- Contribute to your employer’s defined contribution plan if you have one available.
- Put money into an individual retirement account (IRA). Determine whether a Roth or Traditional IRA is the best investment for your financial situation. You can set up funding for this type of investment to be automatically and conveniently transferred from your existing accounts.
- Consult a financial advisor such as our financial professional. There is never a bad time to ask questions AND there are no questions that are bad to ask. Any of our staff will be able to get answers for your questions about retirement.
TIPS FOR EFFECTIVE FINANCIAL MANAGEMENT:
- Regularly evaluate your budget and assess “needs” as opposed to “wants.” Base your purchasing decisions on needs. This will make for a strong foundation in budgeting for the rest of your stages and help keep you on track with your goals.
- Avoid impulse spending. Be as financially fit as possible and try not to spend a lot on frivolous purchases such as costly jewelry, wardrobe, furniture, etc.
- Try to set aside a miscellaneous category within your budget. This would be for anything that doesn’t fall into the basic needs categories such as unforeseen small medical bills, vet bills, school supplies, etc. This will allow for unplanned expenses while staying within the constraints of your budget. Make this category only a small part of your budget and be sure to continue contributing to your savings and investments.
- Review the cost of all of your insurance (health, dental, vision, automotive, life, etc.) and make certain you are getting the most insurance for the money that you are spending.