Preparing your financial security for your family

Author: David @ Gravytrain.co.uk
Published: Jan 30 2009

Securing your family development

Every father seeks to protect his family and to provide the essentials for basic living. For a new father, the newly adopted role of 'man of the house', more responsibilities are acquired with the new role. One of the main concerns that a man faces with his new role is 'how will he protect and raise his family?'

The new man of the house will be seeking ways to protect his family against some of the potential threats that could threaten his family lifestyle. Of these threats, the following three pose the most intimidating.

- Financial security - Home Security - Transportation

Financial security

Robert Kiwosaki once defined income finance security in a cashflow quadrant. This quadrant defined the sources of income that one can receive by working in one of the following structures.

1. Employment - whereby you are employed by a business to carry out a required task. 2. Self-Employment - whereby you work for yourself carrying out tasks for revenue. 3. Business - Owning a business which generates income. 4. Investment - investing in other businesses to generate dividend or equity gains.

One of the most popular revenue streams for security is employment. However in saying this, it will be long term employment that will be secure for the long term. Although, in saying this, greater financial security can be reached via the other revenue streams in Robert Kiyosaki's quadrant, although the risk associated is increased with the different revenue streams.

An ideal target term for financial stability and security will be over a 5 year period.

Transportation

The considerations with transportation for your family will be whether to decide on public or private transportation for your family.

The importance of choosing the correct transportation will impact your family's lifestyle. It is best to consider the following factors when deciding on your future transportation method.

Location - Are you based in the city or in the countryside? Transportation network - Is there a good transportation network in the area that you are living and commuting in? Costs - What added costs are involved in private transportation compared to public transportation and how do they fare?

(Note: When checking costs, noting the insurance associations with public transport will be a factor that could drive up expenditures. It is ideal to compare car insurance to find the estimated costs of different insurance policies and how they may impact your private transportation costs.)

The family home

Finding and developing the family home will be a key aspect to your family's development, as well as your family's lifestyle.

Key decisions such as whether to buy or rent a home will impact your financial costs or rewards in the long term.

There are some larger upfront costs associated with buying a house. Although in renting, the upfront costs even though they aren't as large, can still have a significant impact on your finances.

Essentially, if you own the home instead of renting it, you will have more expenditure to pay, including council taxes, insurances, repayments, however in the long term, you can enjoy some financial returns from equity growth and your family can enjoy the satisfaction of owning a family home.

Note: Home insurance will be one of the major impacts on your yearly finances. It is ideal to compare the different policies to find a good package which is financially friendly.

These are some of the considerations to help with your decision making to enhance your family's security and lifestyle.

This article has been provided by the Bedford Group's Home Quote Direct, leaders in Home insurance.

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