Financial Advice for Young Families

Many young families are torn with the balance of digging out of student loan and other debt while feeling the pressure of living it up or keeping up with the Joneses. The thought of building generational wealth is so far-fetched that it’s hard to know where to even begin

How do we balance it all?

Living with intentionality is key. But let’s also be honest, so is having a good income. Often personal finance bloggers suggest cutting on the expense side instead of increasing on the income side. It’s easier to suggest eliminating cable or cutting out $5 coffee than finding a new job or building a side hustle. 

Regardless of your income level the guide below can help you set up a pathway to building generational wealth. It’s in some ways very over-simplistic as each step has additional layers. With that being said, the concepts around personal finance are simple. It’s the doing that is hard.

How Do You Build Generational Wealth?

Below are three of the things we did right that helped us dig out of debt and continue building our investments in our 30s. Some may seem like common sense, but I believe they are critical to build a foundation to eventually build your family’s generational wealth. 

Minimize Lifestyle Inflation

Becoming financially literate early will allow you to minimize the temptation of lifestyle inflation until you can afford the life you want without financing it.

Realize the Benefits of Investing Early

If you have a young family, knowing that you have started investing early will provide more flexibility later in life if you lose a job, take a pay cut, or something worse.

Set Your Financial Foundation

Having a strong foundation will provide more flexibility as you grow your young family. Your financial foundation can be made of retirement savings, low expenses, a livable wage, passive income, or debt-free assets.

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