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3 Financial Planning Tips for Starting a Family

One day, a young man fell in love. He tried to save money to go out on a date with his sweetheart. They had fun together, and they both shared the expenses until the guy decided to take the relationship to the next level one day. This time, he had to save more money to buy a piece of jewelry: an engagement ring. He also needed to plan the proposal to save money for a formal dinner date in a fancy restaurant. That special day came. He might have spent $6,000 on the engagement ring and $250 on dinner. But it was all worth it because, after a good dinner, he bent down on one knee and popped the question. And she said, “Yes!”
They fell deeper in love with each other. This made wedding planning easier. It would be expensive, but at least both of them were saving money for it. Anyway, a happy wedding is every girl’s dream, so they don’t mind spending money. The answer to all the possible expenses is financial stability. This is beyond having a job, as you might lose that job. It is also beyond having savings. Savings are not supposed to be spent.

Here are basic suggestions and tips on starting a plan towards financial stability, especially when you are building a family.

1. Stick to Your Budget

Know how much to spend and how much to save. There are many ways to go about this. If both you and your spouse are working, you can choose to live on both salaries. You can also have one spouse to pay the bills while the other goes to savings.You can also start by using the “envelope system.” This is where you use different envelopes to allot budgets based on your spending. For example, one envelope can have cash for groceries. The next envelope will have money for utilities. Another envelope will have money for personal care.   It is also good to allot a certain percent of your salary for emergency funds. This can be useful in the event of losing a job. A financial expert said it is good to have six months worth of salary saved for this. That way, your family can still have money to use for six months. A good breathing space while you find a new job.
Being newlyweds, you still have that elbow room to move. So it is also good to consider moving to other locations or places where you and your spouse’s lifestyle fits. You may also want to consider the education of your future kids. And New Jersey and Florida are the top states for education. New Jersey ranks first in preschool education, while Florida ranks first in higher education. That way, you can also consider other factors while living in those places. Consider the city where you want to live—and then buy your dream home there. For example, you choose to stay in Florida because you love the beach. Then, Naples is the city for you. Naples is surrounded by miles and miles of powdery white sand beach. With the help of an excellent mortgage company, buying your own house can be a dream come true.

2. Organize Your Estate Planning Documents

Topics on death, sickness, and disability are uncomfortable to discuss. But these are actual events. They sometimes happen when we least expect them. And when they happen, you know you will need money—a lot of it. So as early as the start of your marriage, it is good to plan and invest in life or disability insurance. Designate a healthcare proxy. Even create a Will. That way, you and your spouse will be ready for the “suddenness” of life.

3. Invest for Your Retirement

Financial stability is not only good when you are younger. It is all the more important when you grow old. You want to enjoy the fruits of your years of working and take care of yourself when you get to that point. Having financial stability, from marriage and parenting all the way to retirement, can be meaningful. And it is always good to start early. That way, it naturally becomes a part of your lifestyle. When a financial need arises, you do not have to panic. You can enjoy life without worries. It is possible.

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