How many of you have argued with with your partner over money? No matter what the current state of the American Dream is in your family, we’ve arrived at a point in time that is defined by this one, incontestable truth: how your family spends and saves money, and how that money flows needs to be talked about. Protecting and planning for your family’s future should be a top priority in your life.
Money Lesson: You must have an emergency fund of 8 months of expenses in savings at all times.
NEVER USE MONEY AS AN EXCUSE
Take control of your life by taking control of your finances. Money is not an excuse to stay in an unhappy situation. You can never move forward in your life if you allow yourself to stay stuck. The only way to move forward is to take control of what isn’t working in your life and change it.
Money Lesson: You are never to use money as an excuse for anything.
BABY-PROOF YOUR FINANCES
Most of us know that few decisions in life carry more responsibility than the the decision to become a parent. Raising one child for the first twenty years can cost approximately $200,000 and their college education alone can cost over $100,000. Before you baby-proof your house you have to baby-proof your finances.
Money Lesson: You Should Be Financially Solid Before Having Children.
SAVING FOR COLLEGE
Every parent wants to save for their child’s future college costs, but can every parent legitimately afford to save for their child’s education? How do you begin? Should your children take out student loans or should you save for them versus your retirement? Your financial priorities need to be in place first.
Money Lesson: Before you start to save for a child's college cost, you must have the following financial priorities taken care of: ' 'no credit card debt, an 8 month emergency fund, a term life insurance policy and be able to set aside 15% of your gross salary for retirement.
KNOW YOUR INVESTMENTS
How is your money invested? It‘s great to know that you have a ROTH IRA and a 401k Plan, but what are your investments? Do you know? What’s happening with your money? It’s not enough to just invest!
Mini Action Plan:
1. Do the homework and learn what your money is invested in.
2. Learn the lesson: No one is going to care about your money more than you do!
3. Get control of your money to get control of your life.
Money Lesson: No one is going to care about your money more than you do!
TERM LIFE INSURANCE
Making sure your loved ones will be financially secure if you, or your spouse, were to die prematurely is the ultimate act of love. Term life insurance is how you show your love.
Tools: How to Buy Term Insurance:
1. Research to Buy Term Insurance.
2. Shop Around Online for Term Insurance Rates
3. Buy a Generous Policy – Look to be one that has a death benefit that equals 20 times your loved one’s annual needs.
4. Never Make a Minor Your Beneficiary
This information is for discussion purposes only. It is speculative and based on assumptions that may not be correct or complete. OWN: Oprah Winfrey Network and its affiliated entities and Suze Orman and her affiliated entities do not represent or warrant its accuracy. This is not a legally binding commitment and OWN: Oprah Winfrey Network and its affiliated entities and Suze Orman and her affiliated entities shall have no liability, and disclaim all direct, indirect, consequential, punitive or other damages, for the use of, or reliance on, this information.