Transform your family into a financial dynasty

Transform your family into a financial dynasty

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Businesses and entrepreneurs often write down what they hope to achieve in the future. It’s a reminder of why they work so hard towards their goals, and it’s seen as perfectly normal. But when family members try to do the same thing for their kin, all of a sudden it seems weird. Families are supposed to be informal, so adding a layer of official paperwork goes against the grain.

It turns out, however, that families that adopt a business mindset tend to do better. They are more explicit on what they want to have in the future, and how they want to get there. And they have a sense, financially, about how they are going to achieve it.

When Robert Kiyosaki wrote Rich Dad, Poor Dad, he intended to educate the leaders of families on wealth acquisition. When whole families work together toward the same monetary goals, they often end up getting there more quickly.

So what can you do to improve your family’s prosperity and turn yourselves into a financial dynasty?

Allocate Time And Workload

Have you ever wondered why people today are so much wealthier than people who lived in the past? Although technology played a role, most of it comes down to specialization: people doing the same tasks over and over again at high efficiency.

You can apply the same principles to your family. Think about where you should focus your family’s resources for maximum return. Could you, for instance, benefit most from putting money into your children’s education? Would you be better served giving capital to your offspring so that they can start their own profitable businesses? How about paying a bit more money to live nearer to an industry in which you have significant skill?

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Don’t forget to treat the process as you would any project in business. You’ll need to keep track of important milestones to make sure that you’re achieving your goals in good time. And you’ll want to track your financial return over time to figure out whether you made a good investment decision.

Many families want to stick with their old routines. But doing so can be counterproductive, especially when an opportunity comes knocking. Only families who are prepared to break out of the mold make genuine progress in their quest for wealth. Just doing the same thing over and over again is unlikely to lead to a breakthrough.

Set Goals Together

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For financial transformations to work at the family level, each person needs to feel as if they have a say in the direction. That should include children as well as parents.

When businesses discuss their plans, all of the owners discuss them together. They work out what they want to produce, who to sell to, and how many people they need to employ. Families also need to go through a rigorous process to discover what each person wants.

Remember, it’s not always about just acquiring wealth. As any wealthy person will tell you, money doesn’t make you happy, and nobody gets rich by just focusing solely on their bank accounts. Moreover, it’s about the process: having a passion for what you’re doing and doing it well.

Families, therefore, need to concentrate first on what is important to them and then money afterward. Often money is the result of serving others, and so if your family become useful in the world, then it will generate piles of cash as a byproduct.

Make Timely Investments

One of the reasons that services like OnlineCash4Payday® are so popular is because they give families the flexibility to use capital as they please. Many families are financially conservative with their resources and miss out on opportunities to magnify their wealth.

Let’s go into a little more depth. The average family tends to save money by depositing it in a savings account with the bank. Because interest rates are so low and banking fees are high, the actual interest returned is often in the region of 1 to 2 percent, and sometimes less. But savings account, although easy and secure, are by no means the best way to generate significant capital for the entire family.

Take corporate bonds for instance. These are widely considered to be relatively safe because even if a company fails, it’s the bondholders who get paid off first, not people who hold shares. In most cases, companies repay the loan and interest, but even when the company fails, many bondholders get their money back. What’s more, interest rates are in the 5 to 7 percent, meaning that there is genuine scope for compound growth, year after year.

Shares are the highest risk, but families could do even better here. A family that invested $1,000 in Netflix ten years ago would have more than $60,000 in their brokerage account today. Finding these opportunities can be difficult, but it’s well worth it. What are your children and their friends interested in right now? There’s a good chance that the company behind it is one to buy for the future.

Put Values Front And Center

Top businesses often talk about the value of “company culture.” Company culture, however, is just a euphemism for values: things that the company won’t do in pursuit of profit. Families need to apply the same concept: what are they prepared to sacrifice in pursuit of wealth, and what are they not?

Most families, for instance, are unwilling to sacrifice time together purely to get more money. What is the point of money if you have no time to enjoy it together? Some families will also avoid taking opportunities that involve moral compromise.

The key here is to make sure that there is an open dialogue between all family members. Ensure that values do not conflict and find out how each person wants to share the wealth when it comes. Often discussing values leads to new inspiration and understanding of one another.

Create A Mission Statement

The vast majority of companies have mission statements. Most are uninspiring. They merely describe what the company hopes to achieve. The most interesting, however, are those that invoke values or describe a vision.

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Take Alibaba, the Asian rival to Amazon. Their mission statement is “to make it easy to do business anywhere.” Forbes, the online news site, says that they want to challenge people with exciting and new ideas every day. Finally, Sony doesn’t want to sell you new electronics; they want to fulfill your curiosity.

Mission statements can be powerful when done correctly. So which mission statement should your family choose?

Perhaps the best mission statements are those that contain an element of gratitude. Yes, you want your family to be financially successful, but you also want to bring them closer and be happy together. Gratitude is an excellent way to do this. You could be grateful for your good fortune, and the opportunities you now have that you didn’t get in the past.

Writing down your mission statement and displaying it prominently can also make a big psychological difference. It doesn’t have to be overbearing, just something in the background that reminds all members of your family what you’re striving to achieve every day.

One Final Point …

Becoming a financial dynasty is a challenge. It’s not something that every family is cut out to do. But with persistence and determination, your family can work together to achieve its financial goals. Being wealthy is about more than budgeting properly or getting a promotion: it’s about having the right vision and working together with other people to achieve it.

Improving your family finances FAST

Improving your family finances FAST

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Money is a big concern for almost every family in the world, and it’s something that you want to try and master if you are going to be as happy as possible with your partner and with your life in general. It can often be hard to make sure that you are working together as a team when it comes to money, but you will need to do that if you ar to ensure that you are doing the best you can with your money. Of course, there are many other methods to keeping on top of your money besides, and you will want to make sure that you are approaching them from all angles possible if you want to make that happen. In this article, we are going to take a look at how you might be able to improve your family finances fast, including some of these ideas which we have looked into already.

Work Together

Firstly, make sure that you are actually and actively working together when you are trying to keep your head above water financially. If you find that you often argue, or that one person does not quite fully disclose the situation to the other, then you will need to think about what you can do to make it better. It might be that full honey needs to be worked upon and developed, or even that you just need to start working from a joint bank account. If you work together, things are much easier no matter what kind of a position you might be in, so it is definitely worth making sure that you are going to work together as best as you can in the future, even if it takes a lot to be able to get there.

Try Out New Streams

If you want to bring more money into the household, then it is always a good idea to make sure that you are trying out new streams at all times, so that you can be sure of bringing more money into the house no matter what, even if old ones die out. These income streams can be pretty much anything, whether that is taking a second job or trading forex at CMC Markets, so long as you know that it is going to bring you mr money at some point. Again, working on it together will ensure that you get as much as possible, and it is something which you will be able to make sure you can increase together by doing so as well.

Be Calm

It can be easy to let it get the better of you, especially when you are concerned about the whole family. If you find that happening, you might want to consider that it is much more important to simply remain calm and try not to panic. The calmer you can be, the more likely it is that you can make the most of it, so it is definitely worth thinking about mastering this particular skill.

 

Teaching your teen about finances

Teaching your teen about finances

Before your teen leaves the nest, you simply must teach them about finances. You need to do this because if you don’t, who will? If you don’t, how can you be sure that they will learn this very important life lesson before it is too late and they get themselves into a spot of financial trouble?

Yes, you need to teach your teen about finances now, before it’s too late. And, if you’re wondering just how that is done, then wonder no more as advice on the matter can be found below.

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Teaching them how to spend and manage their money

As you can probably attest, an important part of adulthood is being able to manage money properly. So, make sure your teen knows how to do it! First of all, make sure they know how to manage and spend the money they actually carry on their person (both in the form of physical banknotes and the money on their cards). Make sure they know where to spend their money and when to spend it. Make sure they know all about moderation. Make sure they know the importance of prioritization. And make sure they know that once money is spent on one thing, it cannot be spent on another.

And, once you’ve ingrained all of these good spending habits into your teen’s head, you need to teach them how their money is actually managed. This means, most importantly, that you need to teach them the importance of their bank accounts and savings accounts and the safest ways for them to be accessed. Also, you need to teach them of the importance of protecting their bank and card details at all costs.

Let them know of the financial obstacle they are likely to face

Life is full of financial obstacles, and it is better to teach your teens about them early in their life so that they will be able to successfully circumvent them as their life progresses and later in it.

One such obstacle that you should teach them about is debt. Simply, you should be as open and as frank as you possibly can about how debt forms and how it is then managed. First of all, you should make sure they know about all the ways in which debt is formed, and that even means telling them that it will form upon them taking out a student loan. You should then teach them as best as you can about the ways in which debt is fought, such as through the taking of debt relief programs for student loans. Basically, how debt is formed and then fought should be some of the first points you cover in the financial lessons you give your teen.

Your teen is soon to be a fully-fledged adult, and you will save them a lot of stress during this transition by getting them ready, as best as you can, for the financial world they are about to enter.

 

Things to teach your teen before they leave the nest

Things to teach your teen before they leave the nest

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Every parent out there wants to give their children the very best start in life. You work very hard to make sure they have a good education, while also spending loads of time with them to keep them happy. When it comes to leaving home, though, a lot of young adults are woefully unprepared. There are loads of little areas which need to be learned before they can safely live on their own. So, to help you out, this post will be exploring some of the less-obvious of them.

Budgeting: Being able to balance spending and saving is a skill which a lot of people simply don’t have. When bad habits are adopted early, they will be hard to drop, and the same can be said for good ones. Even if it means drawing up a plan for them, your child should have a solid understanding of their finances before they set off. This is especially useful for students or those on very low wages.

Borrowing: Getting loans and borrowing money are perfectly natural parts of life. A lot of people see this sort of action as negative, but, in the life of a youngster, it can be essential to have a way to get access to emergency funds. Credit cards for poor credit and new account holders are a great way to handle this. Limiting the amount which can be spent while giving a good safety net, these sorts of options are perfect for young people.

Moderation: Drinking, taking drugs, and experimenting with relationships are all a part of growing up. Of course, though, when too much of these things are had, they can start to become a problem. Being able to moderate themselves properly will start with childhood. Simple things, like limiting time spent watching TV or on the computer, will shape your child into someone with heaps of willpower.

Social Skills: Being shipped off to university or into a job without the ability to communicate with others will be very hard. Social skills, like moderation, have to be taught over many years, and this will start when your kid is very young. Taking them to playgroups before they are old enough to go to school is a great way to start. From there, though, you should try to give them as much exposure to others as possible.

Driving: Independence often starts with the ability to drive. Enabling them to work far away, while also giving them the chance to roam free, this sort of benefit is something a lot of modern kids have to live without. By helping your child to learn this skill; you can make their life a lot easier. Of course, though, you have to think about their budget, as a car will be expensive to run.

Hopefully, this post will inspire you to start working harder on the time you put into your child’s future. When they leave home, they will be exposed to lots of things they’ve never experienced before. While being scary, this will also be exciting, and you will be there at every step of the journey.