Look let’s be honest, most of us have a few family members who we could probably do without. In my case it varies, depending on which child is annoying or costing me the most. Surely I’ll get brownie points for not including my wife!
Nonetheless we love most of them dearly and even if we don’t, we can be stuck with them for quite a while anyway. So from a financial planning point of view that means we need to give serious consideration to the impact, if something goes wrong within our family tree.
Yes I know half of you have stopped reading already, but if you haven’t, please stick with me for a minute or so. I understand that none of us really like giving this due consideration, but it only gets worse if something happens and you aren’t prepared.
It doesn’t really matter where you sit on the family tree (and these days they can be a lot more complicated than the one shown), once you are old enough to be financially responsible then it’s time to consider what impact you may have on others or they may have on you.
So grab your favourite beverage and consider some of the below points and then where applicable, please follow through with a discussion with your nearest and dearest……….blame the financial planner!
Those who are more mature
Have you got your legal documents in place; Wills, Powers of Attorney, Enduring Guardians and do those people who you have left in charge know where the originals are?
Have you discussed the need for your adult children to look after their own family and be financially responsible? You might love the grandkids, but do you really want your retirement derailed because you have to fork out for their financial requirements because something has happened to your son or daughter.
If you haven’t cut the umbilical cord with your 25+ darling child……….then do so. There is a difference between a hand up and a hand out!
Remember when “little Johnny” is complaining about the price of housing……….”god helps those who help themselves”. How many fancy holidays had you had before you were 30?
The Mid-lifers
Have you got your legal documents in place; Wills, Powers of Attorney, Enduring Guardians, Guardians for your minor children and do those people who you have left in charge know where the originals are?
Have you asked “mum and dad” if they have their affairs in order?
There are plenty of financial pressures when you’re raising kids, paying the mortgage and trying to get ahead, but have you secured your family’s lifestyle if something goes wrong?
Despite what they say “mum and dad” don’t want the financial burden of raising your children or having you move back in with them.
Make sure you’re teaching your children about the “value” of money. Funny thing is to do this; you have to understand it yourself.
Those just starting out
Have you got your legal documents in place; Wills, Powers of Attorney, Enduring Guardians and do those people who you have left in charge know where the originals are? Yep it could happen to you also, have a chat to “mum and dad”.
Educate yourself about all things “financial”, what investment options are there, set some achievable goals.
Start a savings plan as soon as you can, to develop good habits……….it’s not that hard. Once you’ve got a nest egg saved invest it wisely. This will start you on your way to financial independence.
“Mum and dad” really can’t afford to keep paying for your lifestyle, a small amount of board is substantially cheaper than moving out……….so be fair and pay up.
Save up and pay for things like a car, holidays, the latest IT gadgets, etc, rather than borrow. It will take you years to appreciate this, but when you do you’ll be soooo grateful.
If you have a fulltime job, take financial responsibility for your lifestyle and consider insurance while you are young and fit………..it’s cheaper and no exclusions. You don’t want to have to move back in with “mum and dad” and put up with their rules!
Conclusion
If you’ve got this far, then good on you, you’re the one most likely to have your affairs in order, or get them in order. The above points are far from exhaustive (yes, maybe they are exhausting), but they will provide some good starting points.
Remember it’s your family tree and if it is to be “then it’s up to me”.
Take care.
Robert.