Disclosure – #ad this is a collaborative post.
Are you trying to fix your finances for the good of the whole family? Then you’re in the right place. Personal finances are important, but they’re even more important if you’ve got other people relying on you. That’s a lot of responsibility.
If you want to find a few tips to help get your overall financial wellbeing in order, then keep reading…
Some of these tips might take a while to implement, while others are quick fixes. Either way, it’s important you take your time to build the best financial foundation possible – for you and your family.
A number of financial pressures have affected average household debt and stability in recent years, so it’s important you get on top of things if you want to start providing a better future.
Wondering what sort of financial position you and your family are in?
Here are the main factors that determine how well you’re doing:
Do You Own Your Home?
The biggest factor that could determine how well your finances are and what your financial future looks like is if you own your own home. Homeowners might have to lay down a deposit in the short-term, but they’re putting themselves in a great financial position that should give them a much better freedom further down the line.
Firstly, owning a home needn’t be expensive. As long as you can afford a deposit and qualify for a mortgage, you should end up paying less per month than renting. That means your finances will be in better shape and you’ll also eventually own a home. When you combine this with generally rising housing prices, owning a home is important.
Are You Insured?
Insurance is a good way to provide extra stability and peace of mind. You should make sure all your major assets are insured, especially your home. You might also want to consider life insurance to provide even more stability to your family. Remember to compare life insurance plans on offer , life insurance is a long standing commitment so you want to get the best deal.
How Many Other Assets Do You Have?
Aside from a main home, do you have any other major assets? Things like cars, boats and even second properties. These assets all make a difference and should be evaluated when working out your financial stability. Don’t overestimate the value of depreciating assets like vehicles, but make sure everything is accounted for.
Do You Have Any Major Debts?
One thing that can negatively affect your financial stability in a big way is any debt you might have. Household debt continues to rise in the uk, and it places additional stresses and pressures on a family’s finances. While a mortgage does count as debt, this is generally seen as a good one. Debts you need to be more careful with are bank loans and especially payday loans. Don’t get stuck in a spiral of debt that leaves you owing more and more as the months go by.
What Investments Do You Have?
Aside from main assets like houses, do you have any other major investments or financial assets? You might have a savings account, cash ISAs, bonds, stocks and shares or more. All of these can make a difference to how wealthy you feel, especially if you can access the money quickly.
Do You Have Any Savings?
We already touched on savings when looking at investments, but cash accounts and other regular savings are also important. Oftentimes, these can be the savings that are most useful as you can access the money quickly, so make sure you’ve got enough to cover you and your family in emergencies.
Hopefully, you’ve seen a few ways to analyse how well you and your family are doing financially. How have you managed to adapt your family finances in recent years? We’d like to know.