Does your family enjoys the real financial freedom? Here are few points to compare. These are the points mandatory for those who wish to have financial freedom in all times.
1. Do you have a family budget and living in budget?
Need to create a family budget and live in it. Such budget should be created by adding all the required elements. Check this article to know how to create a good family budget that really works.
2. Emergency Fund
Are you ready to face any unseen events that happening to you or any family member? i.e. unexpected illness, accidents, job lose etc.. Check whether you have an emergency fund in place and that equal too your 6 months expenses, at least, to face such unexpected events.
3. Are your family members safe in case of the death of the bread winner?
Ask whether you have a term insurance with sufficient amount in place for the family to safeguard from unfortunate death of the bread winner.
4. Do you want to run for money when there are any short or long period hospitalization?
If so, you need to think about the medical insurance coverage for the family with sufficient sum assured. An emergency fund also required to created to protect from such events.
5. Does your kid has a piggy bank?
If not, educate them the requirement of saving money and making transactions and purchases. This would help the kids to grow with necessary financial knowledge and wisdom.
6. Is your family members involved when making major financial decisions?
If not, it is required to engage everyone in the family to take suggestions. Some time a 10 year old kid can provide better suggestions. A talk on family matters in the evening would be a viable option to everyone to know what is financially going on in their family.
7. Do you have a list of investments and other money related activities and shared with your family members?
If not, it is mandatory a second person know about your accounts, investments and other money related activity. You also need to ensure each investment and accounts have a nominee and KYC registered.
8. If you have taken loan, do you have enough coverage in case of your death?
If not, term insurance for bank loans should be applied and that would help the family members from huge loan burden in case of the death of primary loan holder.
9. Are you able to re-pay your credit card spending in each month?
If not, you are using your credit card without control. You need to control the credit card spending only for emergency services or purchases that would add point to you each time the card use. Credit card debts should be pay-off each month to avoid money lose through penalties and interests.
10. Do you have a disciplined investment plan?
If not, start investing at the earliest regularly. Starting SIP (Systematic Investment Plan) with mutual fund or even stocks would help to meed your goals such as child education, marriage, buying a home, retirement etc. You can visit to a personal financial planned to identify the best investment that suit to meet all your goals time to time.
11. Do you have a retirement plan?
If not, a plan needs to be made and act to achieve the goal. Investments for retirements should start from the day your first pay check receives.
12. Have you co-signed with anyone?
If you have co-signed with anyone as a guarantor for loans etc., try to move out at the earliest. Never be a guarantor for anyone and never give a blank signed cheque to anyone. Both will not only hit back but also may land in jail.
13. Do you have a money losing habits?
If you have habits such as smoking, drinking etc and regularly, it is a black hole in your personal finance to lose money little by little and regularly. Stopping such habits would give you an opportunity invest that money regularly in somewhere.
14. Finally, do not have pile of cash in your hand.
This would tempt you to spend money for unnecessary wants.
Compare the above points and make necessary decisions to confirm you and your family enjoying financial freedom.
Compare the above points and make necessary decisions to confirm you and your family enjoying financial freedom.
