Money is a tricky thing. It seems like when it's in your family, it just disappears. Everybody knows someone who seems terrible with money – they always have a new car payment or are struggling to pay their rent. But you don't want to be that person either! So to ensure that your money stays within the family, here are some tips for you.
Create a family trust
An excellent way to keep your money in the family is to create a trust, which will give you more control over how your assets are distributed after you die. You can decide who gets what and when they get it, which can be a great way to ensure that your money goes where you want it to go – and not into the hands of someone who will spend it all. In this case, an SLP Family Trust is an excellent option if you live in the UK. SLP stands for "Settlor Limited Partnership." This type of trust is designed specifically for families and can be a great way to keep your money within the family.
Make a will
Making a will is another excellent way to ensure your money stays within the family. You can specify who should inherit your assets and what they should do with them. For instance, if you are the family's breadwinner, you can leave your house to your spouse and children. This way, they will have a place to live when you are no longer around. In creating a will, you have a lot of control over what happens to your money after you die. However, one of the factors you need to consider is that your will may be contested. If someone doesn't like what you write in your will, they may try to change it. This is why it's essential to ensure your will is watertight. You should consult with a solicitor to ensure everything is in order.
Keep good records
Keeping good records of your finances is vital to help you monitor where your money is going. To do this, many families employ the use of very detailed spreadsheets, savings apps, and tax tools such as Taxcaster. This ensures you are not spending the money you don't have. Good record keeping can also help keep your money in the family instead of selling your assets to pay off debts. This is because it is effortless to overspend if you don't know what you are spending your money on. You could spend thousands of pounds more than you need yearly without realizing it.
Talk to your family about money.
Many families have a taboo subject when it comes to money. But if you want to keep your money within the family, it's essential to talk about it. Talk to your family about their financial goals, and see if there's anything you can do to help them. For instance, if your son is going to university, you may be able to help him with his tuition fees. If your daughter is getting married, you may be able to help her with her wedding costs. Talking about money can be a great way to ensure that your family is on the same page regarding financial goals.
Set up a family bank account
If you have young children, setting up a family bank account can be a great way to teach them about money. It can also help to keep your money within the family. A family bank account is an account that is in the name of the family rather than an individual. This means that your family owns all the money in the account and can be used for anything the family needs. This can be a great way to ensure that your children have access to cash without worrying about them spending it all since the trail of where the money came from will be easily accessible.
Be prudent with credit.
Finally, one of the biggest traps people fall into is using credit. Credit can help you get what you want, but it can also be a way to lose all your money. If you don't use credit wisely, you can pay hundreds or even thousands of pounds in interest. This money could have been used to keep your family afloat, but instead, it goes to the credit card company. So, be prudent with credit. Only use it when you need to, and always pay off your balance in full. This way, you will avoid paying interest and keep your money within the family.
Using the tips above, you can ensure that your money stays within the family. These include making a will, keeping good records, talking to your family about money, and setting up a family bank account. Taking these steps ensures that your money goes where you want it to go and that your family is taken care of.
