You’ve found the perfect partner, bought or rented that first home and maybe started a family, but never take planning family finances for granted. Things can change – quickly!
Interest rates have been low for some time, inflation is well under wraps and wages have been edging up in recent years. However, making sure that your family’s financial position is healthy should always be a priority.
The Brexit debate
With ongoing Brexit negotiations likely to create uncertainty for some time, many things can change within a few months. Yes, even after the recent General Election we’ll be hearing about Brexit for months – if not years.
Companies cut costs and people lose jobs. Market conditions change and borrowing rates fluctuate. Also, unexpected bills crop up that can knock any family budget off course.
That sounds dramatic and pessimistic. It’s not. It’s about being prepared to tackle anything that’s thrown at you. That means planning.
We help people think about all aspects of their lives. When they know what they want, we can help them plot a financial route to achieving that.
How do families budget?
Setting a budget should be a priority. It can be daunting, but sit down as a family and identify all of the monthly outgoings.
That means everything. Add up those utility bills, subscriptions and insurance policies. Some payments could be quarterly or even annual. Don’t forget these.
Knowing exactly what’s being paid out each month lets you plan ahead. It helps you to see if you can cope with income changes or unexpected bills.
It also allows you to consider savings.
Contingency funds and insurance cover
Part of any monthly budget should involve being prepared. Putting a set percentage of earnings aside each month gets you into the savings habit and helps to build a contingency fund.
A savings pot is important in many ways.
There could be a household emergency, an unexpected family event or someone losing income or a job. Families need to be able to cover these things, sometimes for several months.
Whether it’s cash at the bank or an instant access savings product, being able to access funds you have put aside help you and your family ride out uncertain times.
The same is true of a well-chosen insurance plan. Many people consider life insurance but overlook income cover. If you can’t work or lose your job the family lifestyle will be put under immense pressure.
Help with mortgages and planning
The mortgage is often the largest outgoing of any family budget. There is a huge variety of products and lenders out there, and finding the right one for your situation is a major decision.
Logic Wealth Planning is a respected team of independent financial advisers. We help people find the right mortgages to suit their circumstances. We consider risk and what people can genuinely afford.
You should always be aware that your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.
Crucially, we work closely with our clients to review their situations each year.
If things change, we help them plan to cope with changes in income, fluctuating interest rates or unexpected costs.
Call us on 0808 1234 321 or email firstname.lastname@example.org to arrange a no-obligation chat about wealth planning, protecting your family and your future financial plans.