It’s only natural to think about securing your financial future, especially if you are newly married or have children, but just the thought of trying to save enough money for expenses down the road can be overwhelming. For the millions of Americans who live paycheck to paycheck, making a plan for higher education, home expenses, and emergencies can be daunting.
Fortunately, it doesn’t have to be. With a little research and preparation, you can create a plan for the future that won’t leave you stressed. Read on to find out the best ways to do just that.
Pre-pay your child’s college tuition
Many colleges offer prepaid tuition plans, so you could effectively lock in an amount now no matter what tuition rates will be when your child is ready for college. The major kicker is that your child has to attend college and need the tuition; if he or she receives a scholarship the money may not be available to you.
Prepare your estate
In the unfortunate event of your death, your estate may take a long time to be settled, throwing your loved ones into the middle of a lengthy legal battle. Depending on what state you live in, you may be able to plan ahead with a Life Estate Deed or a Lady Bird Deed, which would enable you to keep control over your estate for the remainder of your life but keep it open–and out of probate–after your death.
Enlist the help of family members
When it comes time for your child to receive gifts for a birthday or holiday, enlist the help of your loved ones and ask for a check to go towards their college education rather than more toys or games. You can make it easier by setting up an account with Ugift, which would allow your loved ones to contribute directly to a 529 account for your child.
Invest in life insurance
It’s difficult to think about, but there may come a time when you or your family members need life insurance to help pay for a funeral and other expenses. It’s a good idea to plan ahead and invest in a good life insurance plan for each family member. Many excellent plans are available for any age group at affordable rates, some for as low as $10/per month.
Create a budget…and stick to it
Working out a budget is fairly easy and one of the most critical parts of securing your financial future; the hard part is sticking to it. Enlist your partner or spouse to help write down your monthly expenses, figure out a way to cut back on spending, and consolidate debt as much as possible. Make it a priority to be one another’s cheerleader and support each other when it comes to saving money.
Say no to those cards
It might be tempting to say yes when confronted with a line of credit, but paying off your existing cards and refusing new ones won’t just boost your credit score; it will also save you a monthly payment. Cutting down on your bills as much as possible will ensure you can sock a little away with each payday.
Securing your financial future can seem like an intimidating process to take on, but with these tips, it doesn’t have to be as daunting as you may expect it to be.