Your financial health directly impacts the quality of life your family experiences. If you’ve ever been in a position where you didn’t have enough, you understand how terrible it can feel. Thankfully, this doesn’t have to be the experience for you and your family when you implement certain wise decisions. Consider the best tips and tricks that will financially benefit your family.
1. Invest in the Right Insurance Plans
Even though it’s extremely uncomfortable to think about death, you have to prepare for it. This is especially true when you have a family. If you experience an untimely death, the last thing you want to do is leave the financial burden of unpaid bills and debt to your family. By investing in the right insurance plans, you can protect yourself and your family. Insurance plans for medical coverage, car insurance and emergency situations are important as well. Read the fine print of your insurance plans to make sure you’re making the right decisions. Don’t be afraid to find a professional who can help you comb through your insurance plans to see what you can do to maximize or widen your coverage while decreasing your monthly costs.
2. Develop an Emergency Fund
You never know when an emergency is going to happen. This is why it’s wise to be aggressive with saving money. Save money in an emergency fund. Try your best to have at least a year’s worth of expenses saved in that fund. If something were to happen, you could always have liquid assets to pull from. For many, this one act can alleviate a lot of stress. Though it might seem impossible at first, create a timeline to make it happen. Make sure the emergency money is not easy to access so that you don’t try to use it in a moment of weakness when you’re ready to go on a vacation on a whim
3. Protect the Assets
One of the most common ways to build wealth in America is through real estate. If you decide to build a rental portfolio as a real estate investor and landlord, you’re going to have to deal with a lot of people like contractors, workers and tenants. If you ever have a business deal that goes sour, you want to have a structure in place to protect your assets. If a person sues you and wins without your assets being protected, you could lose everything. However, if you have your assets protected in a Delaware statutory trust, it’ll be much easier and safer to protect your assets and keep them in the family.
4. Diversify Your Income Streams
The time that you have with your family is precious. If you spend so much of that time working, you’re going to miss out on some important helmet. This is why it’s wise to diversify your income streams and make many of them passive. This allows you to avoid trading your time for money. While you can have your traditional 9-5 job, real estate investing will allow you to make money in a relatively passive way. Yes, real estate investing takes a lot of work upfront. However, most of the day-to-day work can be outsourced to a property manager. Find a ghostwriter who can write and publish a few books for you. Run ads and sell them on major platforms to make extra money every single month. Never solely rely on one income stream to survive.
5. Use Credit for Leverage
While there are plenty of financial gurus who will encourage people to cut up their credit cards and get rid of debt, that’s not the wisest way to move. In fact, credit is one of the best tools for leveraging that you can have. The key is to learn how to use credit wisely. When you have an excellent credit score, it opens so many doors as it relates to getting good interest rates, points for different perks and more.
Some of these steps will feel foreign to you if you’re not used to them. However, resist the urge to procrastinate on any of these tips. The sooner you put things in place, the better off your family will be in the long run. Don’t wait until an emergency to get everything together. Plus, once you get over the hurdles and challenges that might be associated with some of these tips, you’ll be so much more empowered to keep going.