Case Study on Floyd & Debbie, early 30’s, married with one child. Annual Household Income: $75,000 Mortgage $170,000 Car Loans: $25,000 If you find yourself in the same financial situation as Floyd & Debbie, you should consider:
The sooner you start saving for your child’s education, the better. Many parents start saving for their child’s education at the child’s birth.
Build this account up to at least 12 months of your annual income. And be true to yourself – use the funds only in an “emergency”.
In the long run this will help the child in the event something happens to either or both parents. The will can give guardianship and wealth distribution instructions.
Start contributing to a retirement account at work or on an individual basis. If either of your employer’s offer a 401k plan with a match, invest as much as possible because that employer match equals free money for you. If your employers do not offer a 401k plan, open an individual retirement account.