In the wake of COVID-19 and the pandemic, inflation has made the cost of living skyrocket, and now more than ever, families need to take steps to invest in their future and prepare as much as possible, especially if they have little ones to provide for.
Speaking to a financial representative can go a long way toward answering any money questions you may have, including: “Do I have a 401K and if so, how much should go in it?” or “What is a Roth IRA, and do I need one?” or “How much should I be putting in savings every month if I feel like I have nothing left over to save?” or “I need to make a budget? That means spending less money, right? Doesn’t sound fun.”
Tammy Scott is a regional vice president who owns Scott Associates and works under the umbrella of Primerica Financial Services out of Saint Joseph, Missouri. She is a financial representative who answers questions like these every day, as she has been serving families in her area for the past 25 years. There are representatives just like her all over the country who are doing their part to help individuals and families set themselves and their loved ones up for a profitable future.
My family of five has been working with her recently, and she has really opened my eyes to the ins and outs of putting what she calls a “financial road map” into place. It turns out it is much more doable than I thought, even if I didn’t understand it all at first. Tammy says that getting back to the basics is the best way to start your financial journey on the right foot.
“Education is key. There isn’t an instruction manual that comes with your paychecks. Knowing where your money is going is crucial, not just for big expenses but for all the little stuff too,” she says.
Setting up a down-to-the-dollar monthly expense report is step one. Knowing how much money is going to karate classes, Target runs, and fast food stops between the chaos every month can really paint your financial picture and current lifestyle. For me, this picture wasn’t pretty at first, but I am learning along the way to set boundaries for myself and my family in order to make our money work for us, instead of the other way around.
Beyond the day-to-day expenses, young families have to begin to face their debt head-on. This part isn’t fun, but it’s the most valuable piece of the puzzle, in my opinion, because it sets you up for financial freedom over time. With Tammy’s help, my family is using a strategy called debt stacking, where you list each of your debts, including car payments, mortgage, and credit cards.
Then you decide what extra dollar amount to pay down one of them per month while paying the minimum payment on all the rest. Once that one is paid off, you use the money you would have put toward that debt and add it onto the monthly payment of the next one until, little by little, they are all paid off.
“Debt is a big stressor. It’s never too late to take control of your situation. You didn’t get there overnight, so there are no quick fixes,” Tammy says. “It takes time and commitment to make the changes necessary to eliminate debt.”
Behind all the calculations and the paperwork and the financial jargon you think you can’t understand (but actually can) is genuine, practical advice you can put to use immediately, and it’s much easier than you think to get going.
If you’re piled under more than just your laundry and you’re ready to get out from under your financial situation, it can be done. Raising a family is hard enough. Adding the stress of money management can push you over the edge. Take the first step to get help, even if your situation feels beyond resolve.
“A coach can alleviate the fear, helping you know that you can take control,” Tammy says. “They don’t teach this stuff enough in school. You are inundated with credit card applications and ‘buy now, pay later’ deals. Young adults need to know that the first step to adulting is getting a plan for their finances.”
By learning to live within your means, coming up with a financial road map, and being ready for a financial emergency if and when it pops up, you set out on a path that becomes less daunting by the day. Beyond that, you show your kids what it looks like to save, to know where your money is going, and to set a budget and stick to it. As parents, we know that our kids learn best by example.
