The effects on the financial stability of many people and businesses because of the shutdowns caused by Covid-19 were discussed in the previous two articles. We also talked about the importance of having an Emergency Fund of at least 3 – 6 months for when unexpected circumstances occur getting out of debt. Additionally, the need to have the correct type and amount of life insurance for anyone who has someone depending on their income. We also discussed other forms of insurances that one should have based on their individual and family needs.

The next thing to look into is getting a Will or updating the one you currently have. A Will is one of the most important things you will ever do for your family. Depending on where you live when you die, it may be a relatively simple process to settle your estate or incredibly complicated. The welfare of your children is something you don’t want to leave to the State to decide. Should both parents die while a child is a minor, their god-parent won’t get custody of the child. However, most states do not honor the god-parent pledge without it being in the parent’s Will. Families who select different people to be the god-parent for each one would mean splitting the children up. It would be even more devastating for the children if it became a reality.

Dying without a Will adds to the burden of your survivors. They are already dealing with the grief from your loss. Again, I experienced this myself upon my father’s death. In addition to only having enough insurance for his burial, he also did not have a Will when he died. To complicate the matter, his mother predeceased him by ten months, and she also did not have a Will. It wouldn’t have been so bad, but she owned the house where we lived, and my father rented it from her so she’d have an income on top of Social Security.

We had to settle my grandmother’s estate and then my father’s estate, and not knowing how it would all turn out left my sister and I concerned about where we would end up living. The uncertainty and relying on SS Survivor’s Benefits weighed heavily on our young minds.

Were you not to have any debt, a Fully Funded Emergency Fund, the proper insurance, a Will, and your retirement savings funded correctly invested, you still have other considerations. One of those is that your retirement savings are invested correctly. Diversification is the keyword for that. The last thing you want to do is have your entire nest egg in one or two investments, like the company stock for where you work. Not being diversified puts you at severe risk of losing your nest egg. That would be one of the worse things you could experience, right before you’re ready to retire.

Deciding what investments to use and how much to put into each one is best done after getting enough information on those investments to make a sound decision yourself. Relying on an investment advisor to make those investments without your explicit knowledge and direction is a recipe for losing your shirt. No one should invest in anything that they aren’t knowledgeable enough to explain the investment to someone else outside of the investment world.

We’ve been only talking about taking care of those financial things that directly affect you and your family. Now we need to discuss making financial decisions that will benefit others. Money is good for three things. One is to give, the second is to save, and the third is to spend. Each one of these should be done proportionately to your income and based on your beliefs and values. However, all 3 of them need to be done with the money your earn. An imbalance in any area will create an imbalance in your life and the life of your family.

Many people would say spending money is the best way to enjoy it. I disagree with that mentality. I believe giving money to others is far better than buying things for the sake of buying them. Eventually, you run out of places to put the stuff, and you either end up giving it away or throwing it away. While giving it away may be good. Throwing it away is wasteful. Also, while there’s always going to be some new gadget to buy, eventually their attraction wains and buying stuff becomes boring.

On the other hand, giving cannot become boring especially, if you are directly involved in the giving process. To see the faces of those who receive your gift will bring joy beyond anything you can buy. Some people would say you’re buying that joy, but you’re not buying it like you do an inanimate object. Knowing that you helped feed a family without enough food, paying someone’s utility bills to help them get back on their own feet, helping to rebuild someone’s home that was destroyed through a natural event, providing clean water or medical supplies for a village experiencing disease and famine far outweigh any material item you can purchase. If you don’t believe me, give it a try for a year and let me know which one feels better.

So, what are you changes are you going to make in 2021 to have the possibilities you want for your future?

I hope today’s blog was encouraging to you and provided information to help you and others better handle their financial matters. My purpose through these blogs is to inform the reader about money and financial issues so we all can become better managers of the assets we’ve been given. If you like what you read, make sure to sign up so you can receive my weekly posts. The goal of Take Two Financial Coaching is to provide the necessary information to help families and individuals break the chains of debt, build lasting wealth, and become outrageously generous by changing their perspective around money and finances.

For those who are tired of being in the rat race or want to manage what they earn better, I am available to have a Free 60 Minute Conversation to discuss your situation and how I can help you change it. Go to my calendar at https://ramseycoach.com/taketwofinancialcoaching to arrange a time that works for you. You can also email me at taketwofinancialcoaching@gmail.