Future-proof your family's finances

We wish we had a crystal ball. You know the type.

One that, if you gaze into it, you can see the future, allowing you to take action to prepare for whatever challenges - or blessings - might be coming your way.

Even though we don't have an all-seeing crystal ball, we DO have a passionate team of highly skilled financial experts and consultants to help you do everything you need to prepare for your financial future, whatever that might hold.

While no one knows what the future holds, you can make certain good financial decisions today that will help to future-proof your family's finances. So, in this blog, we will talk about the 3 steps you need to take to prepare for your financial future and what you need to consider to future-proof your family's financial future.

But first.

Want to jump straight to the good part? You're in luck! Schedule a free consultation with our money experts. They're standing by to assist you with developing a future-proof financial plan personalised to your specific needs and circumstances.

Now, on to the steps you can take from today to future-proof your family's finances.

Step 1: Invest wisely for tomorrow

Investing wisely today is essential to securing your family's prosperity tomorrow. Indeed, it's one of the most powerful tools at your disposal. But investing isn't just about growing your wealth; it's about creating long-term stability for your family. The right investment strategy will help you build wealth and ensure that you're prepared for whatever life throws your way, from your kids' education to your retirement.

Diversification is key when building your investment portfolio. You're not putting all your eggs in one basket by spreading your investments across different types of assets - like equities (local and offshore), bonds and cash, and property. This helps to reduce risk and increase your chances of steady growth of your investments over time. And don't forget to regularly review and adjust your investment plan as your life circumstances and the market change.

Step 2: Get insurance

While investing is all about growth, insurance is about protection. As South Africans, we know better than anybody else about the need to protect ourselves and our loved ones from the risks of everyday life. Unexpected events like a car accident, an unforeseen medical bill, a severe illness, losing your monthly income due to an illness or disability, or storm damage to your house can throw your family's finances into chaos.

There are 4 main insurance categories:

Life insurance is a must-have, providing a financial cushion for your loved ones if something happens to you. Medical aid is also crucial because medical emergencies can drain your savings fast and leave you or your family without necessary emergency care.

Then there's disability insurance, also known as income protection, which can protect your income if you cannot work. And finally, property and car insurance to safeguard your car, your home, and your belongings.

By taking out the right insurance policies, you're focusing on growing wealth and protecting what you've built, giving your family a more secure future.

Step 3: Plan for your children's education

One of the best investments you can make is in your children's education. Quality education is the foundation of future success, and planning ahead ensures that your kids have the opportunities they need to reach their full potential. But with education costs are constantly rising; this requires careful thought and calculations.

Start by estimating how much your children's education might cost down the road, factoring in things like inflation and the type of education you want them to have - whether that's private schooling, university, or even international studies. Then, look into education savings plans or special investment accounts that help you save systematically over time. Education protection is insurance that allows you to safeguard your children's education if something happens to you.

Bonus tip: Draw up a Will

With National Wills Week taking place from 16 to 20 September 2024, now is a great time to discuss why having a Will is so important. A Will might not be something you think about daily, but it's crucial to protecting your family's financial future.

What is a Will?

A Will is a legal document that spells out how you want your money and possessions to be managed after you die.

Read more about the importance of having a Will. In summary, a Will is important because if you die without having a Will in place, the courts will decide on your behalf how your estate - your assets, both financial and physical - should be divided up. That means you and your children will have no control over who should – and should not! - get the money you have worked so hard to grow for your family.

A Will is important for other reasons, too, such as financial reasons. For example, it can provide funeral instructions and specify who should care for your children and pet/s if you pass away. All things considered, a Will is not only in your family's best financial interests but also substantially reduces the stress and conflict that inevitably emerges if you die intestate - without a Will.

Bringing it all together: A holistic approach to financial security

To truly future-proof your family, you need a holistic approach to financial planning. This means combining wise investments, comprehensive insurance coverage, education planning, and a thoughtful, well-prepared Will into one cohesive strategy.

The money experts at Velocity Club specialise in helping people like you develop strategies like this. Remember: Your family's future is too important to leave to chance. Let's work together to create a comprehensive financial plan covering all the bases, so you can relax knowing your family's financial future is bright and secure.