It is very important to develop responsible fiscal habits as early as you can. These good habits will pay dividends down the road for you in addition to those close to you. However, much of what you will be able to achieve will be enjoyed by your children and hopefully your children's, children. This is what is known as a legacy. The goal should be to your improve your finances for the here and now but to be mindful of establishing a foundation for the coming generations.
Here are three ways to establish and leave a legacy for your loved ones...
Purchase a life insurance policy: Life insurance is the first step to having solid fiscal footing. It’s simple; it is a guarantee that our time here is finite and as result we will one day have to pass on. Life insurance is one of the easiest ways to transfer wealth today, along with it being tax free cash once received. Besides, not having life insurance can cripple a family with funeral costs ranging anywhere from $10,000 to $20,000. If you have this money set aside for this inevitable expense, kudos to you. If not, consider getting a policy as soon as possible.
Buy real estate: Buying a home is arguably the most important and difficult purchase of your lifetime. Homeownership is the staple to wealth in America today due to much of that wealth being tied to the value of our homes. If bought correctly a home should provide a safety net in tough times since the equity in a home can be converted into cash. Real estate also leaves options. It can be passed down, sold for a hefty profit or left to rent out to make steady passive income. Every family should have a home of their home at one point or another.
Create a Last will and Testament: Regardless if you have one dollar or one million dollars you should have a will. There are different types of wills that can be tailored to your specific needs. The purpose of a will is to give final instruction on how your assets are to be distributed upon your passing. Many times people pass away with no will in place (intestate), leaving the state to decide the course of action for all accumulated assets. The state can and will not put a better plan in place for your family than you can. There are inexpensive ways to set up a will. Visit www.legalzoom.com for more info.