Who doesn’t want a secure and healthy financial world for their family? If you’re reading this chances are you’ll do anything to keep your family safe and ensure you provide them with a life unlike anything else.
Some of our biggest dreams aren’t for ourselves, but for our family. We dream of providing them with the best experiences life has to offer. Here are 5 amazing tips to secure your family financially.
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#1. Build a hefty emergency fund
Super important.
The number one way you can secure your family financially is by building a hefty emergency fund that can protect them during a rainy season.
Note I said rainy season and not rainy day.
Sometimes life simply happens and before you know it we’re going through a pandemic and lockdown out of nowhere.
Have your emergency fund money work for you
The best thing you can do with your emergency fund is to put it in a high yield savings account so it can earn interest every month. Don’t let your emergency fund collect dust in a traditional checking account.
Banks like Citibank, BMO Harris, and Capital One all offer these services and are also FDIC insured meaning your money is protected.
Have cash at hand
This can be in the form of actual cold cash or liquid money that’s available to you instantly, such as a personal savings account.
What I find works best is to allocate money in a money market account and in a personal savings account. This allows me to protect my family should I need to access money right away.
Meanwhile, the hefty emergency fund is earning interest every month. Sounds pretty great right? It is.
#2. Lower your overhead
It does not matter how much money you make. Lowering your overhead simply implies to live below your means.
The most renowned millionaire’s will tell you this is a big part to building long term and generational wealth.
Lowing your overhead allows you to secure your family financially because it keeps your overall costs down.
What are some benefits to a smaller overhead?
- Family necessities become abundantly affordable
- No more living paycheck to paycheck
- Sense of self control and achievement
- Resources become available to save and invest
Don’t mistake a small overhead for living frugally. That’s completely up to you. A smaller overhead simply provides you with more access to your monetary means.
So, when should I raise my standard of living?
You should raise your standard of living in small increments.
You’re most likely in a place where you can technically afford higher rent or a new car. However, when we’re striving to secure our family financially we should avoid instant gratification and instead delay it.
Before you begin to make bigger financial moves make sure you and your partner are:
- Debt free
- On the same page about finances
- Have a heft emergency fund built
- Setting financial goals together
Read: How to Successfully Manage Money As A Couple
What are some ways I can lower my overhead?
You can lower your overhead by:
- Renting oppose to taking a loan on a mortgage
- Paying off debt to eliminate monthly payments
- Lowering your utility bills
- Cutting off unnecessary streaming services or subscriptions
- Investing in your health and changing your grocery spending habits
Which leads to my third strategy on how to secure your family financially. Yup, by setting healthy budgets.
#3. Budget healthy
Now, I say budget healthy because I do believe in splurging on your family once in a while. I mean what’s the point of sustaining a growing family if you can’t spoil them from time to time right?
All in moderation.
Setting budgets will secure your family financially and allow you to gain self control over your spending habits.
Budgets also help us communicate better with our partners and instills trust within the relationship.
When we’re in sync with our partners we tend to grow at a faster rate financially.
Not only is budgeting great for your wallet but it creates a bond between you and your significant other.
What are some simple budgeting ideas?
- Conserving electricity (also good for the environment)
- Meal prepping / home cooked meals
- Keep an eye out for deals or specials
- Wash your own vehicle
- Pull out the gift cards from your drawer
Read: 10 Successful Ways To Save Money During A Recession
#4. Develop multiple streams of income
Ladies and gentlemen, the single most effective way to secure your family financially is to make sure there is always cashflow.
Start a side hustle, create your online business, do MORE.
These things won’t be easy. I’m not talking about make money fast ‘opportunities’. Developing multiple streams of income takes time and anyone who says otherwise is a scam.
Get creative with it and enjoy the process.
People are making money with:
- Fiverr as freelance writers, graphic designers, translators, instructors, and so much more!
- DistroKid – which allows musicians and artists to distribute their music on all major platforms earning them money PER STREAM.
- Bluehost – WordPress’s number 1 webhosting service for bloggers and online business startups.
- Turo, by renting out their vehicles.
There are a lot of ways from which you can earn additional income to help feed your financial goals.
Our ‘Side Hustles‘ tab has a variety of posts to help you manifest these goals.
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#5. Talk about money in your household
This one is very important.
Maintain an open atmosphere at home when it comes to finances and money management.
Filter private conversations around the kids but increase their awareness. Talk about your goals to them. Make them money conscious.
By openly talking about money in the household, you instill a confidence in your environment that isn’t taught in school.
Become that source for your kids so that one day they become just as money conscious and goal oriented as you are.
Talking about money is a great way to secure your family financially
Kids brains are like sponges. If they hear the content you’re listening to online they subconsciously process this information.
When I put YouTube on my television and my son asks me what it is I’m watching, I advise it’s educational videos for adults. He’ll then carry on and play with his toys or draw beside me.
His daddy isn’t binge watching the new Netflix series that just premiered, he’s learning and making things happen. Manifest this activity for productivity.
Kids notice these things. We are the biggest influences in their lives.
Keep winning, keep persevering, and stay humble.
Read: How To Set Financial Goals: 10 Simple Steps!
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