A financially sustainable lifestyle: Part II

In our earlier article on this topic, we defined a financially sustainable lifestyle as one that means living in a way that does not deplete essential financial resources necessary for a comfortable and secure future. We also discussed how many families underestimate what it takes to transition into retirement and maintain their current lifestyle. Plus, the challenges faced by the “sandwiched” generation with aging parents and adult children struggling to achieve their independence.

A good starting point is having an integrated financial plan that takes into account the full picture–well-defined family goals with assets, resources and everything else that impacts the outcome you are trying achieve. Beyond this, we have identified a few strategies to consider that can help protect you and your family for the future.

Strategies that can make a difference

  1. Prepare for your own future. Where do you stand financially, and what are the boundaries necessary for you to meet your own financial goals while acknowledging that parents/children may need help? If you are not financially secure, then you are not in the position to help others.
  2. Build contingency plans for the unexpected. Your plan should incorporate provisions and strategies to deal with potential contingencies. Life’s unexpected challenges will occur; being prepared will dramatically reduce the impact on your situation. If parents need help, planning ahead provides many more options.
  3. Protect your future. You need to do what is best for all family members, including yourself, to assure financial security. This means being an example to your children and not risking your financial security without limits.
  4. Teach financial responsibility. Teaching children fiscal responsibility is empowering. If you provide your children with money at every turn, you will not teach them financial responsibility. By educating your children on how to budget, as well as how to make sound financial decisions, you help them build skills for the long run.

Attaining a financially sustainable lifestyle

While life may bring unanticipated situations, you and your family can be prepared. By living a financially sustainable lifestyle, you are able to gain control and balance your family’s needs with your own future goals. Having a detailed financial plan and making decisions in line with it lessens the financial and emotional stress. You gain a peace of mind that comes from knowing you have built a secure financial future.

To learn more about living a sustainable financial lifestyle, contact us to discuss your specific situation.