Change your Families Financial Future

Posted:Abigail Andrews – Thursday, July 26th, 2007

Are your parents "rich"? Are your grand parents financially independent? Do your parents work like dogs to keep the family afloat? Does you family acquire assets or run their own businesses? Is your family,working, middle or upper class? What class do you want your family to be in the future? Are they going down the right path to achieve that? Did your sister spend thousands or getting "married", have you ever wondered why? Do you think your aunt and uncle invest their money wisely? Does your brother spend, spend, spend? Do all your family members seem to have the same money habits? Are you learning the same habits? Are they good habits to learn? If you have children are you passing on good habits or bad habits? Do you want to change the financial habits your family have taught throughout generations? If so, read on....

Most parents want to teach their children responsibility, particularly when it comes to their financial future, however, very few actually accomplish this task. The reason, because, as parents, we are limited to the experiences our parents passed on to us. Most of us hear the same things from our parents; the common messages passed down through generation after generation are:

• Stay in school, go to university, get the best grades and education.
• Get yourself a good job.... a teacher, a lawyer, join the police force..... most importantly make sure its a "secure" job. We often hear the words, "we will always need doctors and teachers!"
• Get your foot on the property ladder.
• Make sure you have a savings account and save at least £100 a month.
• Make sure you set up a pension at work and pay into the state pension!

However, just because the majority of people are doing these things, does not make them right and that's why so many of us ever get rich! If you look at the worlds wealthy you will find most of them broke the majority, if not all, of these rules. Hopefully this article will open your eyes and help you teach your children (and yourself) to avoid the traps that have stolen financial success from so many people.

To Marry or not to Marry?

One of the most important financial decisions you will ever make is marriage (more specifically who you marry and when). Too many people get married too quickly these days, oh, and get divorced even quicker. People get married even when deep down they know they have no real future. By putting off the walk down the aisle for a few years, you can save a decade worth of frustration. Your first goal as a couple should be to become financially independent, with little or no debt, and have your investments in place. Don't do marriage on credit, its the worst possible start you can have to any relationship. Once you have these three things, your odds of success are drastically improved by beginning your journey on a level playing field. After all the number one reason for divorce is financial trouble!.

The second most important decision is how much you actually spend on that BIG DAY! Your biggest obstacle to attaining wealth is YOU. Too often, people live their lives in a manner that is not conducive to creating riches and then get frustrated at "the system" when they only really have themselves to blame. Think about this, the average cost of a wedding in 2007 was just under £20,000, doubling in the last 10 years. What's more there is now a new phenomenon occurring, its called, 'Competitive Wedding Syndrome' and furthermore, apparently, its pushing up the average bash to £60 per minute!!!! Oh my god, how ridiculous is that! What ever happened to good old romance, getting married on a budget just because you actually love each other? Modern couples care more about beating their peers to the perfect wedding, than showing their love on the big day! Brides-to-be are more anxious about impressing their guests than anything else!

According to the survey carried out by wedding planners TK Weddings, 59 per cent wanted guests to think their wedding was the best they had ever gone to. This, compared to a romantic minority of just 26 per cent, or just one in four, who wanted people to see how in love they were.

It seems getting married is basically the fastest way to start hemorrhaging money! So choose teach your children not to hurry into marriage, and that it does not have to cost the earth, teach them the real value of marriage, what marriage is actually about, LOVE, not money!

Debt is a Disease

Everyone lives on credit these days and if your children see you doing it then the "credit card craziness" is only going to perpetuate and what's more that never creates a rich family. With a few notable exceptions such as a mortgage or an investment debt, debt is a form of bondage; a disease that enslaves the borrower. I am talking about debt for luxuries! Imagine your life without owing anyone anything; your car, your education, the HD TV, the new kitchen, the credit card, even your house, all paid for in full. Like what you see? Then begin to extinguish the "debt is Ok" attitude in your family! Teach your children that the "buy now, pay later" attitude is not the best way forward in most cases! Teach them the value of saving for what they want.

There is another phenomenon that is occurring today.....in my opinion credit is a millennium disease...... easy availability of credit has created a monster that one day will bite, not just the people who have amassed it, yes it will bite them the worst but, it will affect us all. Many people these days are so up to their eye balls in debt they will never be able to pay it off in their life time. People borrow to from lender to pay another lender and each time the amount borrowed gets higher. If banks do not stop lending irresponsibly and the government don't legislate lending polices the credit card phenomenon could be the cause of the next recession!

When I was little, if I asked for something for Christmas i was lucky if i got it. My parents would save and save to buy it for me. I got one BIG present and that was it. Even if there where 3 big presents that I really wanted, no matter how much I hinted I would only get the one. These days children get all 3 presents and more. When they go shopping with there parents at the weekend they get all the things they ask for. Children these days do not know the meaning of "no we cant afford it" or "you can get it for your birthday but not now". Children these days get what they want, when they want, and much of the reason is parents are competing with each other to get their kids the best of everything, they don't want to appear the "poor ones", they want to appear rich even if it is all on credit and costing them everything. I have news for o.............keeping up with the Joneses never made anyone RICH!! Break the habits now, start to careless what everyone else is doing and what's more teach your children the value of "NO"! Its a valuable lesson for them to learn.

Be richer than your Parents

If you don't like where your parents were at your age - Do things differently. The old cliché that "insanity is doing the same thing over and over expecting different results," holds just as true today as it did when it was originally written. If you don't like where your parents were at your age, stop what you are doing. During your childhood, they taught you all they knew about money. For many people, these early years established how they feel about their finances today. In order to become financially successful, you must do something different than they did. Otherwise, you will end up exactly as they are. Furthermore, if you believe you have bad habits then those bad habits will be passed down to your children, and their children. Stop the cycle now! Develop financial habits that your are happy for your children to observe and your are already a step closer to changing your families financial future.

Encourage Careers for love not Money

"Go to University, choose a vocation, like a doctor or a lawyer"! Many of us have heard those words from our parents. Many of us follow the advice of our parents, after all surely they know best? I remember going into college and being surrounded with people who wanted to be singers, dancers, scientists and entrepreneurs, but instead they did what their parents or grandparents told them to do. There is no honor in being a doctor or a lawyer if you wake up every morning and hate your job. Pick a profession you love and you'll never have to work a day in your life. Most importantly stop the "career snobbery" that seems to be getting worse in modern society. If your child says i want to be a plumber, encourage him to be the best plumber he can be, encourage him to learn everything he can, encourage him to think of his future owning a plumbing business. just because he has the brains to be a doctor does not mean he has to be. If he has the natural brains and ability he will naturally excel in any career he chooses!

What's more, the most successful people in the world today create money doing something they love. Your never going to excel if you get up everyday dreading going to work. You will never climb the ladder of success if at the end of the working day you leave the office "like a dog out of the traps!" If you enjoy what your doing you will excel. You will put in more hours to learn more skills. You will start your own venture and perhaps learn skills which will allow you to be financially independent in the future. Choose a career because you want to do it, not because it is safe,or pays fantastic wages, look outside the box. A builders apprentice may only earn £10,000 a year, but, if he loves the job, he will learn all he can, then perhaps branch out on his own, perhaps learn other skills like electrics, he may then start his own business, he may earn as much as any doctor eventually and because he loves what he does he may even eventually earn more, but most importantly he will whistle on the way to work! :-)

Popularity: 7% [?]