Tweet

7 keys to taking control of your finances for the first time

Guest post by: Rhonda Sherwood

Article Overview: Are you a passenger when it comes to the family finances? With busy lives, household chores are often divided up to help families muddle through the chaos of daily life. That is why it is not uncommon for one partner in a relationship to manage the day to day household spending, savings and other financial affairs.

7 keys to taking control of your finances for the first time

Are you a passenger when it comes to the family finances? With busy lives, household chores are often divided up to help families muddle through the chaos of daily life. That is why it is not uncommon for one partner in a relationship to manage the day to day household spending, savings and other financial affairs. If we knew for certain that no hardships lay ahead (divorce, death, physical/mental disabilities) then leaving our financial well-being in the hands of our trusted spouse might be ok. Unfortunately, life is rarely that 'crisis free.' None of us know what lies ahead or when we may have to take the reins of the family affairs. It is best to be reasonably knowledgeable and up to date on the family finances.

So do you know the state of your family's financial health? If your spouse were no longer in the picture would your financial situation deteriorate? If a sudden change in your health made working implausible would you have enough disability insurance and savings to get by? What if you die, would your family be able to financially continue on intact?

Understanding the family's financial affairs doesn't mean you need to be an economic expert or a stock market guru, it just means you need to have a good understanding of the big picture of your financial house. These seven keys will help.

• Wills & powers of attorney- You need to understand what they are and ensure they are always up to date and relevant.

• Insurance - It is vital that you have regular insurance ‘check-ups' to ensure that at all times you are more than adequately covered for any of life's misfortunes.

• Emergency funds- Do you have any and if you do, do you have access to them? If you don't have enough savings to cover at least six months of your monthly overhead costs then, at the very least, make sure you have access to a line of credit.

• What's coming in and what's going out- You need to have a general understanding of what income the household is bringing in and how much is going out each month. If you are constantly in the red then it's time for a family meeting to discuss necessary cutbacks or ways to make more money.

• What is the family's networth? What do you own minus what you owe? - Your house, savings, RRSPs minus your mortgage, line of credit and credit card debt = your net worth. If you're in the negative big time then a good financial goal could be to reverse this position so one day you own far more than you owe.

• What are your family's financial goals and do you have any savings strategies in place to achieve these goals? - As time consuming or uninteresting the annual visits to your financial advisor may be it's really important to show up and participate. You don't want to find yourself all of a sudden divorced at 55 or widowed at 60 and in a state of panic because retirement at any age is no longer plausible. Plan as a couple while ensuring your financial health will remain intact should something happen to the union (death/divorce).

• Finally, know where all the above documents are kept- Will, Powers of Attorney, Insurance papers & documents of all your assets and of your debt. You never know when you will need to access them and quickly. It is best to have a safety deposit box for such papers. If you are really organized, scan the documents and store on a USB in a safe location outside the home. Again, a safety deposit box is the best place.

Related Articles
  Nicolas Cage loses Control
  Money Stress: Five Financial Mistakes to Avoid to Reduce Your Money Worries
  Five Financial Mistakes to Avoid to Reduce Your Money Worries
  Five Ways to Have Fun with Finances this Fall
  Financial Fitness: It's Really Not About the Money!
  Growing Your Business: Why Separating Business and Personal Finances is Good
  7 Keys to B2B Social Media Success
  Opportunities in Retirement
  Reminders Put Your Keys in Your Fridge
  How to Find the Best Financial Education Program
  Spontaneity
  How To Organise Your Financial Future
  Find New Customers releases “7 Keys to B2B Marketing Success” - a new free "cheat sheet"
  Money Plan: 6 Rules for Harnessing Your Money Power
  The Art of Manifestation: When It Is Loving to Be Controlling
  Personal vs. Business Finances
  These Keys Will Allow Anyone To Create Income At Home Online
  8 Keys To Right Thoughts And Right Results
  Get your finances in order for 2009
  Financial Freedom Can Be Yours To Claim

Article Tags: financial planning, investing, money, women



Related Forum Posts
Re: Has anyone a good idea to sort this problem? - I have a habit of cleaning my bag every friday. For some reason I throw everything in my bag all week, and forget about it. I write article ideas, things to do, sometimes I use the work printer to print long ebooks, and throw them in. I have pockets to all small things: phone, keys, car keys, work keys, pens, etc.
Cokes and keyboards - Here's another question, which I'm almost, but not quite, too embarrased to ask. Last night I spilled a bit of coke on the keyboard of my laptop. Not very much, and I thought I'd wiped it up enough so that only a teeny tiny bit had seeped into the section where the keys were. But today the keyboard is acting all funny. So, how much does it cost, anyone, to take a laptop in to a professional and get the under-the-keys part of the laptop cleaned up of all sticky stuff? Anyone know?
Re: What would you do if you knew you could not fail? - That is such an awesome question. When I stopped to think about it the thing that came to mind was something that is probably a little different from what you might expect in this forum post but here it is... I would home school my son. If I knew that I could do it without failing to also give him the social and life lessons that come from attending a traditional school. If I knew that I could do it without failing to teach him every subject to its highest standards and in a way that would foster a lifelong excitement to learn instead of boredom and burnout. If I knew that I could do it so that I could teach him to be an entrepreneur and a rich man in control of his finances instead of an employee at the mercy of the job market. That is what I would do if I knew I could not fail! He is only 18 months old so I have some time....!!! Thank you so much Evan, for the great question. I am a firm believer that if you ask yourself questions in a positive light, your mind will find the answers.
Re: Has anyone a good idea to sort this problem? - David, I love that idea....and I love purses. I usually buy one that has a large cell phone pocket just inside and that's where I put my keys and my cell phone. But I've been thinking that the keys may be bad for the cell phone though, so I'm open to trying a few of the suggestions as well. I may just have to get several new bags/purses and just see which one is the most efficient. LOL
Re: Article: How to Improve Your Cold-Calling Skills - Another thing that can help is to separate yourself from the outcome. Even the best call in the world won't work every time -- so after you craft a great approach and make a great call, that's it. Then you walk away satisfied with the job you did, regardless of the outcome. The action of calling (and doing your absolute best every time) is what matters, the outcome is not something you can control. That mindset will help since the rejection rate is high for cold calls. Also, taking an attitude of finding out information about your client's needs instead of pushing something onto them they might not want/need can help you feel less like a pushy salesman jerk. It's nicer when they react to you more like a helpful friend putting them in touch w/ info they really might need.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

B2B PR – Planning for Success

SEO – Link Building Secrets

Attracting Passionate Employees

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.