Issue link: http://www.epageflip.net/i/884394
24 | | Fall 2017 "Healthy fi nances can lead to happiness because covering your expenses and directing the rest with purpose, strategy and responsibility will achieve satisfaction and align your values to your actions," she says. King urges families to identify their goals and fi nd motivation for mastering their money by using these four steps: 1. Plan. Establish clear, long-term fi nancial goals. Examine your net worth and current cash fl ow. Then you can establish a realistic fi nancial to-do list and monthly spending plan. She suggests using the templates on Mint.com or downloading the Budget Evaluator form from her site: familyandmoneymatters.com. If you need help, turn to a pro. 2. Save. "Save before you spend," King says. "Otherwise, it will not happen." Options abound, from interest-bearing savings accounts to Certifi cates of Deposits (CDs) and Individual Retirement Accounts (IRAs). Before allocating money to savings, however, create a plan for paying down any consumer debt. 3. Invest. "When we invest we should ask ourselves, what is the purpose, the risk and the time horizon?" says King. She advocates for using your company's 401(k) and any matching funds it off ers. Next consider an IRA, then college savings, such as a 529 College Savings Plan. "Don't stop saving for your fi nancial independence," she says, noting that there are loans for kids' college tuition, but no loans for retirement. 4. Share. King talks with families about giving back – not just with a percentage of money but with time, expertise or belongings. "The act of sharing includes so many things," King says. To help kids understand the joy of giving their treasure, however, let them help choose a family cause, from the environment to feeding the hungry, and show them how to allocate a portion of their allowance. Once you're practicing a sound fi nancial strategy, protect assets with legal documents such as a will, durable power of attorney, guardianships, a living will and health-care directive. "They're all as important to have as life insurance to secure your loved ones," King says. Financial well-being — now and after you're gone — instills a sense of security and peace your family may not even realize they have. This is the best legacy you can leave them.