Growing Your Family Without Compromising Wealth
As your family grows, so does the complexity of your financial landscape. Milestones like the start of private school or upgrading your home often come with new financial considerations that can influence your long-term strategy. Even high earners can find it challenging to balance immediate needs with long-term aspirations without a clear plan.
Here are five tips to help you protect and enhance a stable financial foundation that evolves with your family:
- Revisit your budget annually. Your financial picture — including short-term expenses and long-term goals — will change dramatically with the birth of each child and with other life events like career advancement or relocation. Use any increase in income to offset new expenses and reinforce your long-term objectives, rather than letting “lifestyle creep” dilute your wealth-building potential.
- Invest in protection. One of the first steps for any new parent is securing adequate life insurance. This ensures that in the event of an unexpected loss, your family can maintain their lifestyle, home and future plans. Make insurance reviews part of your annual routine, including health, disability, home, umbrella and auto coverage, to keep pace with your family’s evolving needs.
- Update estate plans. Make sure your children would be well cared for and your assets managed according to your wishes. As your family evolves, work with an attorney to update your will and/or trusts, designate guardians for minor children, and ensure beneficiary designations are accurate on all accounts.
- Keep a financial cushion. Life is unpredictable. Unforeseen events — such as a health crisis, a sudden dip in income or a legal issue — can arise without warning. Aim to set aside liquid assets to cover at least six months of living expenses, allowing you to navigate unexpected events without compromising long-term investments or wealth-building strategies.
- Put savings on autopilot. When you’re busy paying for private school, summer camps and travel sports, it’s easy to let retirement and college savings slide. It’s best to set up automatic contributions to retirement accounts, tax-advantaged education funds and other investment vehicles to ensure consistent growth.
Growing a family is one of life’s most rewarding chapters — but it’s also one of the most complex financially. The trusted wealth advisors and bankers at Frost can help you align your priorities and live your best life today, without sacrificing long-term financial security. Reach out to Brad Clark at 214.515.4870 or Brad.Clark@frostbank.com to learn more.
Investment management and trust services are offered through Frost Wealth Advisors of Frost Bank. Investment and Insurance Products: Not FDIC Insured. Not Bank Guaranteed. May Lose Value.