How to Build a Strong Financial Foundation for Your Family

You feed your family, clothe them, protect them, educate them, and put a roof over their heads. All of this requires a substantial amount of money! Building a strong financial foundation, therefore, is arguably the most important thing you can do for your family’s health, safety, and comfort. Here are a few things you can do to make sure you have a secure hold on your finances.

Cash Savings

As convenient as credit is, there is also danger and difficulty in the “out of sight, out of mind” money management. Cash, on the other hand, requires more conscientious control over your decisions. The physical presence of cash makes every transaction more apparent and real! Consider developing a cash savings fund in a safe place. Establish specific goals regarding this fund! How much will you add to this fund, and on what regular interval? Are you trying to save for something specific? For what reasons will you allow access to these funds? Keep this a separate, safe collection so that you are less likely to take from these savings, giving you a protected backup for whatever occasion you decide.

Source: https://www.clevergirlfinance.com/blog/what-to-do-with-savings/  

Insurance Coverage

Insurance may feel unhelpful or unnecessary if you have gone long periods of time without accident or need. However, even the most cautious of people are likely to find themselves in some sort of unsolicited accident or problem in some aspect of their lives. Those occasions are when insurance coverage provides much-needed relief! Consult with a financial advisor or insurance agent that can show you what policies and plans will best fit your needs—current and potential. Insurance Center Associates are a great resource for creating a long-term idea of what insurance coverages will allow you to access, or the protection and peace of mind you can have.

Source: https://www.inscenter.com/blog/2021/02/do-i-need-life-insurance 

Home Equity

Your home’s equity is one of the largest financial resources you have access to. Interest rates on housing payments are almost always lower than those of car payments, student loans or medical debts. One popular way to save money and take control of your financial payments is to utilize your home equity through home equity loans. Use the value of your home, the part you have full ownership of, to pay off other important payments! This will reduce the money spent on higher interest rates, leaving the lowest interest rates leftover for you to worry about. Less money spent, more money saved!

Source: https://www.bankrate.com/home-equity/reasons-to-use-home-equity/ 

Feel confident that you have set yourself up well for your financial wellness when you have established a solid cash fund, have reliable insurance, and use your home equity to get yourself ahead of the game.

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