By Gordon Chavez, Financial Advisor
Managing your family’s money doesn’t have to be overwhelming. These six strategies, honed through years of my family and professional experience, can guide you toward financial stability and peace of mind.
My good friend and mentor Karlo Salgado, Co-Founder of Innergy Financial, tells us, “Empowering families with financial education increases the stability of a home environment, which ultimately leads to prosperity.”
6 Steps
1. Protect Your Income: Safeguard your family’s future by ensuring the breadwinner(s) have adequate life insurance. It can provide crucial financial support if the unexpected happens. Grieving doesn’t have to include struggling to pay the bills.
2. Boost Your Cash Flow: Prioritize paying yourself first—even before bills. Aim to save 10% of your income or start smaller and gradually increase. Building this habit can help you identify areas where you can cut back and free up more cash.
3. Build Strong Credit: A solid credit history opens doors to better financial opportunities. Develop a debt reduction plan and consider professional credit repair if needed. Remember, your credit score is a tool, not a personal judgment.
4. Create a Financial Safety Net: Aim to save 3–6 months’ worth of expenses in a high-yield savings account. This emergency fund can cover unexpected costs and help minimize stress.
5. Invest in Education: If college is in your family’s future, consider a savings plan to minimize student loan debt. A college education can lead to greater earning potential and a brighter future.
6. Secure Your Retirement: Plan for the long term by investing wisely and protecting your earnings from unnecessary taxes. Explore options for guaranteed retirement income and establish an estate plan to protect your loved ones.
Remember, taking control of your finances is an act of love for your family.
I think of my father, who bravely embraced migrating to the United States, where he didn’t speak the language or know the customs yet created a generational interruption for our family. You too can create a legacy of financial well-being for future generations.
