As you start earning money, your goals might change to include having a family. You might take a mortgage to afford a bigger house in which to raise your family and as your children grow, you will need tuition fees and a college fund.
These increased responsibilities mean you need to start managing your finances better, invest and save.
I. Investing your money
The first thing you need to do with your extra money is to invest. No matter what your earning ability is, there is always an opportunity that might be the right fit for you to invest in. Here are a few:
- You can invest in stocks, bonds or precious metals
- Invest in real estate to get regular monthly income
- Become an entrepreneur
- You can take out a life insurance cover
Besides these modes of investment, you can raise a lot of money over a prolonged period of time if you do the below:
- Put some monthly income into a savings account
- Contribute to a college fund every month
You might be spending a lot of your monthly income on things you do not need. Look for areas you can cut back and put that money into good investment options.
II. Secure your family’s future with a will
Making a will is important for the following reasons:
- To pay for burial expenses
If you don’t want your spouse and children to be overwhelmed by the high cost of funeral expenses, you should deal with this eventuality by stipulating in your will how your burial expenses should be paid.
- For your children’s education and other expenses
If you do not plan well, your children’s lives will be greatly destabilized.
Plan for their schooling and other expenses in your will-also appoint a caregiver of your choice to avoid their being shuttled around homes.
- To maintain level of lifestyle
You can specify in your will that in the event of your death, your income should go to paying certain expenses on a monthly basis.
This is necessary in order to maintain the same level of lifestyle that your family is used to.
- To settle debts
If you have not provided clear instructions about your debts, your family will be greatly inconvenienced. Your will should indicate the payment of your debts such as mortgages and others.
- To take care of your business interests
Families can cause a lot of disruption to a business in the absence of a will.
If you have invested in a business, you will need to indicate how your property should be divided among your dependents.
If you have business partners, make sure their interests are catered for as they might dispute the will. To learn more about disputing a will.
- For tax payment planning
Estate taxes can be high so you should account for them in your will to avoid risking your family’s inheritance.
In the absence of a will, your family might incur more legacy taxes than is necessary.
- Your property goes to its intended inheritors
If you have no spouse or offspring and you die without an existing will, any existing relatives you have may inherit your property even if this is not what you intended.
By investing your finances wisely and writing a good will to handle execution of your estate, you will leave your family very comfortable.
About the author
Emmanuel Cruzoe is an accomplished family attorney with over 16 years’ experience in his profession. He has handled many cases and settlements over the years and has a lot of insight to offer on divorce, pre-nuptial agreements and wills. Visit his site http://www.disputingwills.co.uk/ to read more.