One moment, you’re picturing the interior of your dream home, and then suddenly your first-born is heading off to college. As moms, we know that life moves quickly (even though there are times we think they’ll never get out of diapers or sleep through the night).
The speed of life sometimes makes it challenging to find time to balance your day to day finances against future goals. That’s why now is the perfect time to look ahead to your financial future and determine which goals matter to you and your family, whether it is improving cash flow, managing savings, protecting your family or paying down debt.
Control Your Cash Flow Effectively
There are ways to manage your finances without sacrificing the flexibility you want. Draw up a budget and track your expenses so you know exactly where your money is going, and how to make the most of it. People are often surprised at how much is spent on discretionary items.
Plan for Savings
Today’s high cost of living can make it hard to set money aside for yourself. Give yourself a realistic goal to work towards and make it a priority to set a bit away every pay towards savings. If something goes wrong, you’ll have the confidence of knowing you are financially prepared for anything.
Prepare for the Unexpected
It may be difficult to think about, but making sure your family will be taken care of financially in case the unexpected happens will ease your heart and your mind. Writing and keeping your will up-to-date, together with the right life insurance policy, will help ensure you and your family are protected.
Understand Your Debt
Debt can be part of a sound financial plan, when used wisely. Taking on any debt that increases your financial net worth or gives you equity can benefit you in the long run. Also, consolidating high interest credit card debts with a line of credit or personal loan is a great way of reducing your payments.
As moms we know that family time is fleeting, so don’t spend these precious years worrying about the future.
For more information about creating the financial future you want, visit rbc.com/couplesandfamilies. Get the advice you need and download your own personalized Guide to Everyday Finance.