Last weekend, on June 19, 2022, we celebrated fathers. I hope you reached out to and appreciated a father figure in your life.
Fathers have traditionally carried the burden of providing for the family, and this is still true for many families today, but it is often done without knowledge, resulting in mistakes and, in some cases, ruining the family.
As a father myself, I can imagine the effect and impact this can have in the home and on your immediate and extended family.
Even though this is titled financial tips for fathers anyone can benefit from this financial advice.
Happy father’s day to all the men out there, thank you for all the hard work you do for your families and futures.
Your financial objectives should be aligned with your why and your dreams. For example, Jane’s dream life includes spending at least two months each year in another country, and in order to make that a reality, she will need to pay for the adventure and maybe also get a job or start a business that allows her to work from anywhere in the world.
Setting financial goals is more than just retirement planning and financial independence number; you can have other goals and they should be planned for but of course not at the expense of your retirement;
Examples of these savings goals are
One system and tool that can help you reach your goals, especially if it is in the short or medium term, is a sinking fund.
A sinking fund allows you to save for a one-time or recurring bulk expense, which many of our short and medium-term goals fall under
Learn everything there is to know about sinking funds
Debt can be classified into two types.
Good debt has a low interest rate and is used to purchase assets for example a mortgage, whereas bad debt is used to purchase liabilities and has a high interest rate examples are credit cards, auto loans, and payday loans.
Bad debt is like driving on the highway and only looking in the rear view; it’s a disaster waiting to happen. If nothing is done to address bad debt as a father, you can kiss your long-term goals goodbye.
By eliminating these commitments, you will be able to use the extra cash to reach your goals faster – Furthermore, because you won’t have any payments hanging over your head every month, you’ll have more control and flexibility in your budget and also see an instant improvement in your financial situation.
Naturally, men have the responsibility of protection, which is plainly visible in the body makeup of most men (men are generally bigger and stronger), but in today’s society, protection is more than being a macho man, and this applies to your financial life and future even if you don’t have a family now. So, what exactly does protection imply?
An emergency fund is money saved in an accessible savings account for emergencies or rainy days. The rule of thumb is to keep 3-6 months’ worth of expenses.
Setting up an emergency fund is an important step and is easily the best financial advice you can follow because it does not appear required until you need it, which is a typical characteristic of putting systems in place to safeguard your family.
Examples of emergencies include losing a job or income, having something break down that was not planned for, losing a family, being unable to work due to illness, and so on.
It is critical for fathers, especially if you have children or other dependents, to have an emergency fund set away in case something unexpected happens in the future.
To be specific, term life insurance rather than whole life insurance. Term policies are less expensive, but they only pay out if you die within the policy’s term.
Whole life insurance pays out regardless of when you die, but it is more expensive than term insurance.
Term life insurance covers final expenses and allows your family to pay off any debts or mortgages you may have accumulated prior to death. For example, if your home has a £300,000 mortgage, the correct term life plan will pay off the mortgage if you die during the period.
Life insurance is an important aspect of safeguarding your family’s future. There are numerous types of life insurance policies available, so it’s critical to search around for the one that best meets your needs.
Some policies include limitations, such as paying out only in the case of death caused by disease rather than accident. Before signing up for a policy, make sure you understand what it covers.
You can also use it as an estate-planning tool, transferring assets or providing income to heirs after death, or even as a gift to others during your lifetime.
Other types of protection include all other types of insurance, such as health insurance, vehicle insurance, home insurance, and so on.
Would you care and nurture the goose that lays the golden egg or the golden egg itself?
I am sure you chose to nurture the goose, you are the goose that lays golden eggs, you are your most valuable asset. Consistently investing in yourself and being proactive about your personal and professional development is a smart idea.
We live in a world that is always changing; You should constantly be learning and growing. Be aware of this and be deliberate when it comes to bringing your family, career, or business to the next level.
A budget is essential for the financial stability of your household.
A budget is simply a smart financial plan for your money and a system that allows you to carry out your essential responsibilities.
A budget helps you take control of your finances
Budgeting allows you to achieve your long-term goals while also having a good time and fulfilling all of your financial obligations in the present.
You can’t claim to be in control of your personal finance unless you have a budget, therefore it’s critical to establish and implement a budget system that you will stick to.
How to Create a Budget in 6 Easy Steps
Why you are failing about budgeting and what you can do about it
One of the most common sources of conflict in relationships is money. When it comes to money, both partners in a marriage or living together must be on the same page.
The first step is to take the time to share your financial goals, dreams, and values, and then involve them in the day-to-day family finances, with both of you working as a team and making financial decisions together.
Retirement planning begins with saving and investing while you are still working. Setting up your family for retirement begins now when you pay yourself first.
It is critical that you do not ignore your retirement plans, which can be executed in many ways, ranging from your pension contribution to individual retirement accounts to other creative ways of saving for retirement.
9 creative ways to boost your retirement fund
When it comes to retirement planning, the most common option is to invest in the stock market, either through your pension scheme or individual retirement accounts such as the ISA in the UK, Roth IRA in the US, or TFSA in Canada, and you don’t need a financial advisor to do so.
I had a conversation with a successful retired business owner last Sunday whose only wish after starting and selling many successful businesses is that he spent more time with his children when they were younger.
He recognizes the importance of working hard and building a career or business, but he also wished he spent more time with his children, and that got me thinking.
We need to set boundaries and find ways to spend quality time with our families
Another piece of advice I heard on a podcast was that we only get 18 summers with our children, so make the most of them.
The best way to do this is to make memories, which don’t have to be an expensive family vacation.
In the past, financial literacy began at home, with fathers involving their children in the family business as early as possible and passing on the knowledge their father had passed on to them, and so the flow of knowledge went from father to son.
However, we no longer live in that world, and many fathers are unwilling, overwhelmed, or unequipped to teach their children good financial habits and the foundation of financial education.
The reality is that if you do not teach your children about money, someone else will. According to a study conducted by the University of Cambridge, children’s money habits are determined by the age of seven.
Examples of ways to teach your children about money at various stages:
We only get 18 summers with our children, so make the most of them
It will take time for you to teach your children about money at any age. It will not always be simple. However, if you want your children to be able to manage their money efficiently as they are older, investing the time now will be worthwhile.
It is critical to have an estate plan in place so that your children are cared for when you die.
This includes
Wills and their discussions tend to make people uncomfortable, but don’t avoid them because If the unimaginable happens, your kids will go to the people you think can best care for them (without a will, the state will decide who gets custody.) A will also help your family’s finances.
Review and amend your will, trust, and other estate planning documents periodically to ensure accuracy with your current intentions
Parenting and life may be stressful, especially if you’re balancing many responsibilities. Signing up for automated bill payments is a good idea.
Automated payments allow you to control your expenses and never miss a payment deadline. It is not the best option for every expense though, because it only applies to fixed spending and not variable expenses.
