If you have a young family; it can be easy to continue through life worrying about the day-to-day issues. Long term plans might get lost in the busyness of household chores and the tasks of the near future. However, if you start thinking about investments and things to put in place now; your children, yourself, and your partner will benefit in the long run. Therefore, it’s worth taking some time out to plan your finances, so that you know that you’re all set for the years ahead and can afford to do everything you’d hoped to. The following are some helpful tips on various areas that are best planned and prepared for now, for a brighter family future.
Nest Eggs For Your Little One’s Future
Even though the last thing you’ll want to do is imagine your little ones growing up and flying the nest; there’s no getting away from the fact that it will happen one day. Therefore, you might need to start thinking about their future prospects and getting together a savings plan to help them out. Your child may want to go to university in the future and fees will not be cheap. To avoid your kids coming out of uni or college with thousands of pounds worth of debts to pay off; you’ll need to give them a head start and a chunk of money, that they can draw from monthly, is a great way to help them out. For more ideas on funding your child’s university education, take a look here: https://www.theguardian.com/money/2010/oct/12/how-to-fund-university-education and start planning.
Maybe your children won’t end up going on to higher education and will begin their working life a little sooner. A savings plan is still the perfect way to get them off on the right foot. Your kids may need a deposit for a rental property or for when they buy their first home; they could always pay you back interest-free, but you’ll have given them a boost they’ll appreciate for the rest of their lives.
Perhaps you’ve got an adventurous child, who wants to travel and explore the world. Having some cash set aside for any potential gap years or expeditions will make a great gift after they’ve completed their school life and got their qualifications. Or, it’ll be a contingency fund should you need to book any flights back home for them; but, if it’s there, you can utilise the money however you see fit for your family’s future.
College courses and apprenticeships can also cost more than your kids will be able to earn in their part-time jobs. So, having an income for them, to pay their way through a course that will help to secure their job or career, will be a welcome gesture. Remember; you can always ensure that your kids learn the value money or a loan, and help them to build a better future, by making them pay you back, fully or partially, in regular installments. You don’t want your kids to get into any debt with credit cards and overdrafts with high-interest rates; so you’re the safest option when it comes to lending, but you’ll need the cash there in the bank in the first place.
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Retiring Comfortably: What to Consider
Nobody likes thinking about getting older; however, it’s the one certainty in life, so it’s worth planning for it. You don’t want to get into your golden years and be scrimping your cash together so that you canafford everyday items. Therefore, you’ll need to work out a retirement plan as soon as possible, to figure out when you’ll be able to retire and how the income to your family home can be utilised to help fund your future.
If you’re not feeling confident enough to work out percentages and interest (few people are), there are tools available online like the 72t and 72q calculator, that help to show people what they can expect from their money. If you’re still at a loss as to what you need to do; it’s worth visiting an accounting professional or your bank. Those with the right qualifications will be able to tell you if you need to boost your income now, or not, for a comfortable retirement.
With the right advice; you’ll be able to work out how much you’ll be able to spend on basic items during your retirement, and how much you’ll have leftover for holidays and leisure activities. You might feel that your annual expenses drop during retirement; however, it’s worth remembering that you’ll be free each day and will want to fill your time up with things. You’ll have more time to go on holiday and day trips out and about, so you’ll need enough cash in the bank to keep you busy and living an enjoyable life. You’ll appreciate the effort that put in now when you get older and fancy an afternoon tea at The Ritz every now and again.
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Your Assets And Investing Wisely
Aside from trying to save as much as possible for your family’s future; it’s worth trying to pay off as much of your loans sooner rather than later. If you have a mortgage; it’s worth reconsidering your monthly outgoings so that you can pay a little more off than is regularly required (remember; every little helps).
The more you pay off, the lower your interest will be, and you can enjoy the household’s monthly income. The more you have invested in your home and assets, the more it will look after you in the future; you can borrow against your house, to make home improvements, and you’ll be able to increase the value of it for when it comes to reselling.
Remember to make smart choices when it comes to large investments, like cars and holidays; these things are an important part of family life, but they won’t appreciate in value. Therefore, it’s crucial that you’re not living beyond your means each month, and you’re putting your cash into all the right places so that your family will lead a secure and happy life.
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