Family Financial Plan: Protecting Your Family’s Future is Important
Many westernized, well-developed, first-world countries are bustling with one-way, only-in visits from foreigners. The American Dream is one example – immigrants there are twice as likely to start businesses than their native counterparts.
Statistics from the United Kingdom indicate that immigrants to the U.K. are nearly three times as likely to warm up to entrepreneurship than those actually born in Britain.
Even though both westernized countries are both fertile grounds for business-minded immigrants, most full-time workers in both nations live from paycheck, to paycheck, to paycheck, ad nauseam, with minuscule savings account balances.
015 statistics from the United Kingdom found that roughly 30 percent of all full-time laborers in the nation were living as such,
Occupational statistics gathering, processing, and hosting site CareerBuilder indicated that up to three-quarters of such workers in America were just barely scraping by, from paycheck, to paycheck, to…. You get the (dreary) point.
So, how can a household with two – or even worse, just one – workers manage to save enough money for emergencies, let alone retirement?
Take notes on the following ideas to have a better shot at protecting your family from financial difficulties.
Awareness If The Average Household’s Best Shot At Financial Success
People that understand personal finance often find it difficult to believe that most people aren’t financially literate. According to official government statistics from the United Kingdom, roughly one-third of Brits don’t understand personal finance,
In America, pollers found that roughly 40 percent of United States citizens didn’t understand the following personal finance problem:
Assume a $1,000 loan has a 20% interest rate. How much interest is owed after one year? The answer’s $200, but I’m guessing 40 percent of Americans had no idea.
An American-born citizen is writing this, but the lack of financial literacy in both the U.S. and the U.K. is alarming. Seeing as money effectively runs the world, it only makes sense that people should understand basic personal finance.
Ignorance is often a powerful tool that can be used by lenders against the favor or borrowers. Even if illiterate borrowers claim to thoroughly understand personal finance, and lenders didn’t have any personal interests, everyone should be required to understand personal finance before passing high school. Right?
Seek Out Employment Compensation Based On Total Value
Most everyone works to earn the reward of financial compensation. However, when families are concerned, people should be shooting for total compensation, including both financial and all benefits.
Don’t seek out paid time off as a benefit, or working from home – these ultimately won’t increase utility for your family. Rather, many employees’ most valuable benefit, strictly speaking in a financial sense, is their health, dental, and vision insurance bundles.
Most competitive employers cover workers themselves, spouses, and children, as well.
Be Prepared For Financial Emergency
Financial advisers recommend hoarding enough money in a savings account or in cash to cover at least three months’ worth of expenses, and up to six, if not even more.
Sometimes, households face emergency expenses that must be covered by short-term loans. Families, particularly both parents or guardians, should thoroughly study all details of short-term loans prior to pulling the proverbial trigger. Choosing reputable companies like MoneyBoat is always a good idea, per their positive reviews and government commerce bureau ratings.
In Conclusion
Personal finance isn’t an easy mountain to conquer. However, the three aforementioned tips can help you navigate through saving money, authorizing expenditures, and otherwise making sound financial decisions in the name of their family members.
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