You should know how to prioritize your financial goals so that you'll stay happy and financially stable as you get older in life. This doesn't mean that you no longer think about the future of your kids but you're just setting your financial priorities in order.
- Moderately Challenging
things you'll need:
Take advantage of the free training opportunities that will be offered by your employer. Attending free seminars and trainings to upgrade your knowledge with the work that you currently do is a very good investment for your own future. Setting career goals in life is very important because the job market is highly competitive.
The constant seminars and trainings would greatly help in the way you work with your colleagues too. You'll become an asset in your current place of employment as your knowledge adds up. You may also in enroll yourself in a school where you can get a higher education if you think that this can greatly help you for a better job or promotion.
Avoid prepaying your mortgage. It would probably be better if you put off your extra money into your 403(b) plan or 401(k), that would matched what your company is presently offering. If you're near to your golden years, or you already saved enough for retirement, then you may consider prepaying your mortgage.
Revise or update your will to make sure that your wishes are protected and carried out safely. You need to have an estate planning no matter how small your property is. Some people will just conclude and assume that their assets and possessions will automatically pass to their loved ones but without a legal will, the State may step-in and allocate your property or estate. The State will do this in accordance with the law and the distribution may not be done the way you had expected it to be.
In order to make your final wishes to be carried out perfectly, you need to make a legalized will that is updated on a regular basis. You also need to have a health care legal document with a power of attorney to authorize someone to make medical decisions in case if you get very ill and you can no longer make those important health decisions by yourself.
Check to see if your brokerage and retirement accounts are updated. You should designate a beneficiary for your other important financial assets, because planning in advance could make you feel more secure in case something happens. This will also save time and money for your loved ones. You could also avail of tax benefits when you make a legal will.
Evaluate your insurance coverage. Check whether your car and homeowner policies are updated and their deductibles are reasonable. You may look for life insurance especially if you're the head of the family working full-time. You might also consider buying a long-term-care insurance, to aid you in paying for a nursing care or assisted-living when you get old.
Think of creative ways where you can relax and enjoy a vacation that is not expensive at all. Especially if you're going to a vacation with the whole family, think of another way to get the same outcome that won't cost you as much.
Look for a solution in order to please and brighten up yourself or everyone in your family. Think and go back to the primary reason of why you need to spend this certain amount of money. Is it really worth it or reasonable? Do you have enough savings to pay for this trip?
For example, the reason you'd like to take the whole family in Turkey is to meet their relatives. This tour will not only make them meet the relatives but also give your family members a chance to relax as well as bond together due to the busy lives that all of you are currently in. So if it's reasonable and you had saved for it after paying already your debts then you can happily book a trip to Turkey.
Tips & Warnings:
Avoid co-signing for a loan if your close friends and members of the family can't qualify for one. Even if they promise that they can keep up with the monthly payments, just say no to avoid financial trouble in the future.
As much as possible, pay in cash and don't use credit cards but if you already have a few, maintain a good credit by paying your credit card debt so that you can keep that account in good standing.
If you're married, always try to talk to your partner what is the family's current financial standing especially if you're the only one who is presently working. Your partner has the right to know.
You can talk about on what to prepare for the unexpected. For example, about your parents. You can't be sure life will intervene like the health condition of old family members.
You may include as one of your financial priorities in life is to provide parental aid. This can be one of your long-term objectives.
There will be a moment in your life when your old folks will absolutely need help from you. You may not only financially support your children but also your aging parents as well.
You need to consider and respect the suggestions given by your spouse. If your partner is the one who's staying at home, taking care of a child or the children and among other things including the household is a very challenging job too.
Add more funds to your 401(k) or a 403(b) retirement account once you start working. Take action of your retirement goal by setting up regular monthly transfers directly into your IRA.
Cut back on spending as much as you can especially if you currently have no job. Start selling some of your possessions and assets. Take some drastic changes in times of difficulties but always try to stay positive.