It can be hard to look past the blur that is day to day life sometimes. Dragging yourself out of bed, getting dressed, feeding the kids, taking them to school, work, picking the kids up, feeding them, feeding them some more, washing up and sleeping.
It is easy to become consumed with your immediate needs and this can happen with your finances too. We plan for the food shopping and the mortgage, maybe we think a few months ahead for a holiday, but rarely do we look beyond that.
The thing is though, we can do great things with our money if we put some plans in place now. And not just for ourselves but for our families too.
Here are a few places you might want to think about:
Let’s start with an obvious one. Having savings creates a sense of security. It means that if any surprises like a broken washing machine or a bad MOT (mode of transportation) come your way you have the money to pay for them.
You can also use your savings to work towards some of your other goals too. This could be a new car, a new home, that extension that you’ve been talking about for 6 years but never did anything about.
Most people think of old people when they think of pensions. It is not unreasonable since they are the people that get to spend them. But they are an area of our finances that needs to be thought about in our younger years.
When most of us think of retirement, we picture cruises and cocktails, but these need to be funded somehow. That is where your pension comes in. The younger you are when you start paying into a pension, the more money you will have when you come to spend it.
Now what if you don’t want to wait until you are old (although now I’m in my 30s, 57 doesn’t seem as old as it did) to retire. Technically, retirement is a bank balance rather than an age, as long as you make some wise decisions.
Investing outside of your pension means that you give yourself the option to retire early. Say at 50, or even earlier 40?! Or you can just use the money for something else. I dunno – how about that luxury villa in Florida? You can use all the good bits about investing to potentially grow your money faster than it does in a bank account. The only downside is that you normally need a good 5-10 years minimum to get the good returns.
Investments for kids
So, what about your kids then? Well, there are all sorts of reasons that you might want to save or invest for your kids. There are university costs, driving lessons, that first house deposit, or even THEIR retirement. As little as £50 a month from birth to 65 years old could be worth £1.5million if the stock market behaves the way it has done in the past. It could make a huge difference to your children or other loved ones over the course of their lifetimes.
Naturally, when thinking about building a strong financial future for your family, you have to consider the not so good times too. Thankfully, this is why insurance exists.
Life insurance is there to financially provide for those left behind when you are no longer able to do so. Your loved ones get to enjoy their current standard of life because you helped make it happen. If you are no longer around, then life insurance can help fill some of that gap.
What action can you take today?
If you can, grab a few minutes between your children’s demands for food and make a financial plan. A simple tick list will do.
Find that one task that you can start today to create a better financial future for your family. Check out bequest.com and take 15 minutes to get a quote and get covered today!
Charlotte Jessop - Looking After Your Pennies