3 Smart Financial Moves for Parents
As the stock market continues a serious decline and the economy officially enters recession territory, are you looking for some wise financial strategies? Parents are in an especially difficult situation because they need to provide not only for themselves but for their family as well. The good news is that there’s plenty you can do to minimize the sting of the financial crisis of 2022. What are the most effective tactics for hard working moms and dads who want to leverage the power of careful planning, disciplined savings, and frugal living?
Step one is the simplest of all, and it entails making your savings habit automatic. Next, take the time to craft a detailed retirement plan that includes possibly selling an unneeded life insurance policy. Then, start planning for gifts you might want to give to future grandchildren. Other smart approaches to personal financial planning include a realistic downsizing plan for pre-retirement years. Many working adults move to smaller living quarters after the kids move away. Finally, always maintain an emergency fund that is the equivalent of about three months of total household income. Here’s how to get started.
Automate Savings
Sign up for a work-based payroll savings plan or create one of your own through a bank. This is one of many practical ways to save money and the whole point of this strikingly easy technique is to remove emotion and temptation from the equation. When paycheck day arrives, an auto-save system will seamlessly and invisibly put a fixed amount of money into a designated account. Those who set it and forget it this way are often surprised to discover how quickly their accounts grow. The hands-off approach to saving money is one of the oldest and most reliable ways to develop a habit of putting something aside from every paycheck.
Do Careful Retirement Planning
If you’re over 50, you probably search online for the best blogs on retirement to find tips and tricks for building excellent plans. Remember that if you don’t want to make your own detailed retirement plan, it’s best to get help online from a reliable source. The goal is to develop a specific plan that covers all the financial bases for your later years. The best way to begin is to review an informative blog and learn about your options for using a life settlement to sell an unneeded life insurance policy. This single action can help fund a significant portion of your retirement plan. Diligent retirement planning includes accounting for inflation, reviewing investments, understanding how taxes might impact your financial situation, and more.
Make a Downsizing Schedule
Most people past middle age begin the downsizing process several years before they stop working. It’s a method that makes sense, particularly if your grown children move out and leave you with more living space than needed. Selling a home takes time, and a downsizing program can last anywhere from one to five years. That’s why it’s critical to stay ahead of the curve and make a written plan. Include several potential locations where you might want to move and whether you prefer to rent or buy. Some older adults discover that it’s financially and logistically convenient to live in a small apartment or condo.
Thank you,
Glenda, Charlie and David Cates
