Leaving a Legacy of Financial Fitness

Leaving a Legacy of Financial Fitness

If youíre a parent, youíve probably dreamed about passing many things on to your children. Whether itís your core value and belief system, your strong work ethic, or your passion for 19th century impressionist artwork, you want to leave them...

Published Thursday, October 16, 2014

If you’re a parent, you’ve probably dreamed about passing many things on to your children. Whether it’s your core value and belief system, your strong work ethic, or your passion for 19th century impressionist artwork, you want to leave them with at least a small part of you. Here’s something else you’ll want to pass down to your children—a legacy of financial fitness.

There are many ways to set a positive example for your children when it comes to maintaining financial fitness. The most important one is committing to a way of life that enhances your ability to protect and preserve your family financially. Here are some steps you can take to ensure that legacy:

  1. Live simply. Do you really need a television in every room? Are the latest electronic gadgets all that necessary? No. Find joy in real, live face-to-face time with your family. Turn your living room into the latest chat room and enjoy the art of talking with each other instead of texting to each other.
  2. Save, save, and save some more. You really can’t save too much. Sticking to a budget and putting money away on a regular basis will prepare you and your family for college expenses, retirement, and unexpected emergencies. Remember to reward yourself and your family for sticking to your savings plan. Without being foolish and extravagant, you can achieve a balance between building your wealth and also enjoying things like family vacations, hobbies and other extras every now and then.
  3. Get out of debt. In a world of instant gratification and impulse buying, it’s easy to accumulate a lot of debt, especially on credit cards. And paying interest every month instead of paying off the balance is a good way to cut into your budget, making it harder to save.
  4. Buy the right insurance. Cheap policies aren’t always the best policies. You’ll want to do your homework when it comes to insurance. Make sure you have enough coverage to protect your family, home, automobiles, and health. A policy that provides for short or long-term disability should also be included.
  5. Get your estate in order. Just in case something happens to you, make sure you have an estate plan established. This will ensure your family is provided for in the event of your death. It also allows you to decide how your assets are divided, minimizes taxes on your property, and protects the financial legacy you’ve worked hard to create.
  6. Teach your children to be financially independent. If they don’t learn financial fitness from you, they are most likely destined to repeat the bad habits they did learn. Start when they are young so they understand the importance of budgeting, saving, and spending.

Passing down a legacy of financial fitness is not only good for you and your children but also for future generations. Your grandchildren and great grandchildren will learn to live by the same examples you’re setting for your children today. And hopefully they will follow in your footsteps and enjoy a life of abundance that isn’t dependent upon a life of extravagant expenses.

For more information on passing down a strong financial legacy, click on the following links:

http://www.modern-senior.com/preparing-legacy/

http://www.wisebread.com/7-steps-you-must-take-to-protect-your-family-financially

http://www.cuefinancial.com/wp-content/uploads/2013/08/50ways.pdf

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