A family’s overall financial situation matters more than anything else. It’s possible to raise a happy family without much money. However, succeeding on that front becomes much more difficult. No family should experience the stress and headaches of monetary shortcomings. If you want or have a family, then setting certain financial goals is necessary. To avoid problems, you must plan for certain situations and expenses.
Consider the following financial goals for your family:
Goal #1: Daily Expenses
Thousands of families struggle to cover day-to-day expenses. Grocery and utility bills can overwhelm families, depending upon their situation. For that reason, your number one priority should be covering these expenses. Living from paycheck to paycheck isn’t the answer for most households.
Goal #2: An Emergency Expenses Fund
Accidents happen, emergency expenses arise, and you need to cover these unexpected costs. A single hospital visit or broken vehicle could wipe out your family’s money. By creating a specific emergency fund, you’ll weather financial emergencies with fewer headaches and better peace of mind.
Goal #3: Health Care Costs Covered
At this point, health insurance is required for all Americans. Your family might not qualify for subsidies, but you need to plan ahead for health care expenses. This might require a separate bank account or comprehensive planning. Either way, regular visits to health care providers are recommended.
How Can Your Family Achieve Results With These Goals?
Without a doubt, this is a difficult question for most families. It’s not as simple as trying to both earn and save more money. Everyone in the family needs to embrace a change in mindset here. For instance, your family could change its idea of entertainment and spend more quality time together without spending much money.
You probably can’t find a new, better paying position immediately. Then again, you and your spouse could work towards finding better employment opportunities over time. Cutting expenses helps, if you go about the process properly. You should put money away whenever possible into the previously mentioned goals and endeavors.
In the end, each family takes a separate path to financial independence and control. You should focus upon eliminating daily worries about money, though. Tackling daily expenses releases a mountain of stress on a long-term basis. From there, emergency expenses and annual health care should be targeted. Other financial goals then become achievable.
The process of setting family-related financial goals requires time. Likewise, your road to achieving these goals will require time and effort. Nothing happens overnight, especially when it comes to beefing up your finances. A happy and financially sound family is the perfect motivation for making the necessary changes, though!
David Milberg is an investment banker who hails from NYC.