10 Things You Can Do Now To Protect Your Financial Future
How to protect your financial future:
You should protect your financial future as early on as possible. This will mean eventually thanking your past self for being so thoughtful. There’s a difference between scrimping and saving every penny (which can be a huge struggle for many people and not realistic), and making smart changes to how you live so you can enjoy a better future later on.
Below, we’ll give you 10 things you can do to protect your financial future.
1. Invest in yourself
Protect your financial future by investing in yourself. This doesn’t mean going out and buying a ton of clothes or beautiful jewelry (if you want to plan for this in your financial plan, then it can come later). It means investing in yourself in terms of financial knowledge. We simply are not taught enough at school, and this is likely one of the reasons so many people are in debt, or incapable of saving any money. By investing in your own education (there are many free resources, such as courses, tutorials, and even Instagram pages online), you can learn about managing money and get into the right mindset. Working on changing your mindset from a lack mindset to an abundance mindset will work wonders.
Many people have proven time and time again that if you believe you’ll never have enough, it will be a
2. Find other great things to invest in
As well as investing in yourself, of
3. Start building an emergency fund
Having an emergency fund will stop you from getting into debt when things get tough. Many people are forced to turn to a credit card or payday loan to help them when their finances are tight and they are met with an emergency repair, or something similar. With an emergency fund (usually 3-6 months living expenses) you will be able to have peace of mind for many challenges that arise.
4. Find a way of tracking your finances
Tracking your finances is important. Only then can you know how much you have coming in, and how much you are really spending. You might use an app that links with your banking, you might use the notes app
5. Create a long term financial plan
Having a long term financial plan, rather than just short term goals, can help you to achieve whatever it is you want to achieve. It can also help you to avoid bankruptcy, especially if you’re thinking about starting your own business. Click the link for more information.
6. Get comfortable with sticking to a budget
It isn’t enough to simply know your numbers. You should be comfortable with sticking to a budget, too. You should have a number you spend on food shopping, a number for your bills, and a number for any miscellaneous expenses (such as entertainment), with money left over to put into your savings. By carefully doing the math and coming up with a budget that suits you, you can make sure you’re slowing saving enough to put towards your goals. Spending frivolously might feel good for a short time, but it won’t help you in the long run. Remember this.
7. Avoid those spending impulses
We all get the impulse to buy from time to time, but it’s important to stay mindful of them so you’re not always buying things that you don’t really need or use. Next time you get a spending impulse, wait. Ask yourself, do you really need this item? Will you get enough use out of it? If you think so, then see if you can wait a couple of weeks before you actually purchase it. If the urge to buy is still there, then you can buy it without guilt. If it isn’t, then chances are, the novelty would have quickly worn off anyway.
8. Have regular money meetings
Have regular money meetings with your family to discuss any upcoming events that will cost money and make sure everybody is on the same page. It can be a great way to teach your kids the value of money from a young age, too. If you don’t have a family, it’s still important to have
9. Know how you can free up more cash
Figure out ways you can free up more cash, and do this constantly. For example, you may be able to get a better deal on your utility bills if you can check when it’s time to renew. Negotiating is great, as it can help you to get a better deal (especially if you’re brave enough to say you’re going to leave). Making swaps is simple but effective – a lot of supermarket
10. Start paying off debts now
Don’t wait before paying off your debts or the interest will quickly accrue. Keep up the momentum by paying them off now. Some like to pay off smaller debts, others like to get rid of larger debts first. Do it the way that will keep you motivated.
[a contributed post]