Few -- if any -- young couples set out to fail in their financial lives. But it can all too easily happen if you're not paying attention. And failures with money sometimes snowball to become larger issues and bigger stresses. To avoid this, here are 4 ways to avoid the biggest financial mistakes you can make as a young family.
Not Planning. Planning ahead with money might not be the easiest thing for a young person or couple to do. There are a lot of conflicting needs for your money, and many of them are immediate. But earning and spending without a plan is like setting sail on the ocean without a map. You're more likely to drift around and end up either lost or back where you started. To avoid this problem, work together to draft an outline of where you want to be in 1 year, 5 years, 10 years and more. Make sure those goals and needs are shared between the two of you. Prioritize your goals in order of importance and determine what changes are needed to reach them.
Not Acting. Planning for the future and for emergencies is just the start of the road. Once you've drafted a plan for anything -- from savings to managing debt to setting goals -- you need to act on those plans. Make a little progress each week toward your shared goals. This can mean simple things like changing your retirement contributions at work or calling to lower a credit card interest rate or other bill. Or it can mean larger acts, such as writing out a monthly budget. No matter if the acts are small or large, they keep you moving forward.
Not Talking. Tackling financial challenges when single is hard enough; but when you're part of a family, you will need to work together to reach shared goals. For most couples, the hardest part of working together toward goals is making sure you're on the same page. A monthly and semi-annual family meeting and written goals are both good ways to ensure that you keep open and honest communication, understand your progress and work out compromise.
Not Asking For Help. You're probably not a financial professional, so why not work with one? Financial advisors come in all shapes and sizes. Some specialize in things like long-term planning, portfolio management, debt counseling or tax counseling. And for many couples, the ability to have an objective third party involved when hashing out competing goals. Pick the area you're having the most trouble resolving and find a financial advisor who can help you work through it.
By focusing on how to avoid the biggest failures many young couples make with their financial lives, you can help ensure a more successful and secure future.
Share8 June 2016
My name is Eva, and I have been a personal investment adviser for the past 15 years. I have helped many clients wisely invest their money, and I want to give you some tips I have picked up along the way. Many people discount the use of CDs in investments, and I believe that this is a mistake. Financial professionals agree that CD rates are going to rise, and you can take advantage of that now. This blog will tell you how to find CDs with the best rates, how to build a CD ladder for investment purposes, and why CDs can be better than a savings account.
