Now that you know no matter the size of your bank account you will leave your children a legacy, ask yourself, “How can I begin to make different financial choices that will positively impact the lives of generations to follow?”
These are four areas you might want to examine and strongly consider making adjustments in concerning the financial legacy you will inevitably leave behind.
Area #1 Saving:
There is no such thing as playing “catch up,” one of the biggest money mistakes you can make is not paying yourself first.
No matter your income, you can and must put away a small amount of money each month. These small amounts grow to big accounts over time.
Starting small might not seem like you’re making progress but you are because every dollar saved today counts toward a better tomorrow.
Area #2 Expense Management:
Over the years I’ve noticed that when the word budget is mentioned most people just tune out because it has a very restrictive connection.
I felt the same way about it, so I had to redefine the word budget as telling my money where to go, rather than wondering where it went.
When I made that subtle but necessary shift I gained a new sense of freedom that allowed me to create a spending plan which empowered me to be more comfortable with what I had coming in instead of worrying if I’d forgotten one of the bills that should have been going out.
It’s important to remain consistent and committed to the spending plan you’ve created, you can always make adjustments when necessary, but if you skip this step now, you will pay a hefty price later.
Area #3 Debt: One of the greatest financial burdens of the last 25 years has been fueled by our “buy now, pay later” attitude.
And guess who pays later?
Not only do you pay more for everything that you buy on credit due to high interest rates and other fees but if you’re not careful then your children and grandchildren could have to cover the debt that you incur now and that society owes overall well into the future.
I’ll be the first to acknowledge that credit is not evil, I believe it is a good, valuable and even necessary tool for wealth building, what often causes financial problems is debt that is unnecessary accumulated and not strategically used.
When credit is treated like cash or access to it isn’t used for the purpose of goods, products and services that will help you be more, do more and have more in ways that are consistent with your desired lifestyle then it can quickly become the very thing that hampers your chances to live the life that was attempted to be manufactured through credit card use.
Debt free living is not necessarily the lack of interest bearing debt, for example your mortgage, car payments, etc.
Rather it is living with the awareness that what you have committed to paying for over time is a lifestyle choice that frees you up to have cash flow in other areas.
Area #4 Financial Planning: There is a big difference between secrecy and privacy but often when it comes to money more people choose to keep the things that should be private, a secret from their family. This should not be so.
There is no reason that your spouse and children should not know where to locate important papers - for example your will, life insurance documents, the deed to the house, medical records and any other documents that they would need access to in an emergency.
Make it a point to discuss important financial matters with your family because if you truly want your family to “learn the value of a dollar” then you must include them in the family household spending plan process.
You’ll be pleasantly surprised how your children support what’s best for the family when they are aware of just how much is required to maintain your current lifestyle or what’s needed to ensure the family gets to go to Disney World for vacation by just making a few adjustments in everyone’s spending habits.
Whether it’s through a lack of saving, living above your means, spoiling your children (or yourself) with expensive “luxuries” or by constant complaining about your past or current financial situation; make no mistake you are planting seeds for a legacy that will take root and continue to produce similar fruit for generations to follow.
The Biblical verse, “So as a Man thinketh, so is he” manifests itself universally in every area of our lives, especially in the area of money.
Your attitude about money will surely leave a legacy that reflects your beliefs to your children.
They are wired to model what they see, so be sure the image you’re portraying is one that you would want to be mirrored back.
