The world is filled with a lot of mess and uncertainty. The whole notion of safe commutes, safe jobs, safe schools, safe life is under pressure. The media spouts all manners of horrific things about this world. However, despite the science saying that the world has gotten better, uncertainty is very real and not trivial.
How do you build a family’s future when uncertainty about everything is the norm? First, faith is a huge component and second, life was never promised to be a certainty. Change is the only constant that we have. That said, there are things to keep in mind when planning long term for your home.
The blog post is hoping to shed some light and raise questions. It is not to be seen as a complete guide or replace the advice of professionals who can give you custom tailored advice. With the proper legal, health, and financial advice, you can better build security in your home during these times of uncertainty.
Basic Three Story Building.
For simplicity, let’s look at the financial security of a home in three basic stages. These should cover the vast majority of situations a family typically will encounter. The many steps within these stages are not going to be covered in this post.
Each family needs to have an understanding of their foundation economically. That means they need to know how much money is coming in and how much money is coming out. Without that fundamental basic foundation, a family is essentially flying blind. This is even more basic than a budget actually. Sadly, most people have no idea how much is either coming in or leaving a home.
Sure, you can look at your paycheck and see a rough estimate of how much you make, but this is not reflective of how much the family as a unit makes. Sure, you can check your tax returns and hope for a large refund, but that too is not indicative of much. There is more details to see.
Once a family has a handle on their foundation, the next stage is to build a platform. Now, that’s a word that is applied to a lot of industries and things. For the sake of simplicity, a platform is an economic plan that will carry the family forward. Some families like to vacation and their platform is geared to support that preference. Other families prefer to give money to their church or invest in real estate or education. Whatever the priority, it will help shape the many economic models and decisions the family will make going forward.
The final stage is about passing on a legacy. Most people barely plan for their own personal retirement, forget thinking about the retirement of the household. There are many things that go into that legacy planning. Sure, the children have to go to college, the parents have to be taken care of, eventually the heads of household will retire. But then, once you’ve run the course of your life, what do you pass on to the next generation?
The idea of a three story building is easy to understand. This model however is not limited to just three stories. Some people have build entire empires while some never got past the single bedroom apartment of their finance. Let’s dive a bit deeper into the stages.