There are a lot of obstacles and roadblocks along a financial journey for one person. Imagine trying to manage this for an entire family unit. That said, managing family finances just got a little easier thanks to your friends here at FitnessBank.
Knowing where to start is half the battle. This prioritization list is everything you need to point you in the right direction. Read on to learn more.
The number one focus along a financial journey is income. Knowing what’s coming in versus what’s going out sounds elementary enough. But this rudimentary metric is actually the main determining factor of how finances should be distributed. If you’re working with your partner on this, it’s good for both of you to establish transparency here.
And if you have children, it’s never too early to begin establishing this understanding. The benefit of having these conversations sooner than later goes far beyond helping the family unit at press time. That’s because it also gives your children a head start on understanding something most adults still struggle with.
If you’ve managed to keep your credit in good shape, then you’ll have access to greater lines of credit. But, opening a line of credit also comes with its own set of considerations. Factors like interest rates, payment due dates, and more take center stage here.
It’s best to educate yourself and your family on these matters as soon as possible. Failing to do so can lead to so many missed opportunities. Also, the less you know about managing your debt, the more likely one is to abuse this “borrowed money.”
Life is about balance. Trust us when we say we understand the temptation to divert funds to experiences that bring us immediate joy and excitement. But, if your aren’t careful when allocating these funds, it’ll likely be no time at all before you find yourself upside on finances.
That’s why it’s always good to exercise discipline with your finances. It’s imperative that you establish a good schema for dividing monies based on priorities. The 50-30-20 rule is perfect if you want a quick baseline to follow. 50% of your money should go to all necessities (bills, food, etc.). 30% should go directly into your savings, and the last 20% can go towards your “fun” expenses.
The final recommendation invokes the age-old approach of leading by example. Especially when you have children, you’ll want to demonstrate these behaviors so that it’s importance is clear. Don’t use the “do as I say, not as I do” gag. Instead, be the shining example for your family unit, communicating these principles through your own strict habits.
FitnessBank cares about its customers. That’s why we’ve dedicated so much towards creating a comprehensive library for money-focused literature. In addition to our blog archive, we also incentivize our customers’ good health habits with rewards on their accounts. Contact us today to learn more.