10 Steps To Prepare For Your Financial Future

Dec 13, 2019Lifestyle2 comments

10 Steps To Prepare For Your Financial Future The idea of worrying about retirement when you’re not yet 30 is a laughable one. There is so much to do, and retirement is YEARS away, so why worry about a problem that doesn’t affect you yet? Well, here’s the thing about that: it does affect you, from the moment you start working for yourself, your retirement and your future of finances is going to affect you. If you’re busy buying your house, making your family and figuring out the best car to buy, you can be forgiven for forgetting to set up your life after all of those firsts.  However, you need to work towards financial security and you must do it as early as possible if you want to reap the rewards later. You should think about consulting a lawyer about getting a Will set up early, so that your financial future is secure for your family. More than that, you need to think now about your finances in 20 years time, so that you can live comfortably without having to worry. So, what steps should you take to prepare your financial future?
1.  Enjoy yourself
You are young, you are solvent and you are going to need to save up. However, you should have as much fun as possible while trying to find a balance between living a happy life and living one that gets you where you want in your career. You can’t live as if today is your last when it comes to your money, though, so you need to find a balance between having fun and securing your future.
2.  You are the best asset you have
The only thing standing between you and lifelong financial security is you. You are the one with the power to improve and do better, and when you know better, you do better. The money you earn in the future is a direct result of your own knowledge and skills. Improve both of those things and you’re going to have more opportunities to earn and save cash for your later years.
3.  Plan, don’t save
Planning for your future is your best option than saving for it. Sure, save as much as you like and set up pension plans to cover you when you get to retirement. However, don’t save anything without a goal. Planners are goal-oriented, and if you plan your finances properly, you’ll achieve your goals. Write down your goals so that you’ll achieve them better; you’ll see a difference quite quickly!
4.  Go short to go long
Goals are so important when it comes to your finances, but you need to set the short term goals now to benefit from them as long-term goals in the future. Life is going to change many times over the next three decades before retirement, so set measurable short term goals so that you can achieve those long-term ones with ease. As you hit your goals, set new ones to aim for!
5.  Set up retirement accounts
It may be a good idea to forget about retirement when you’ve just graduated, but you also need to consider that you DO still have to get something set up – even something small. An automatic contribution to a savings account every month will help you to get where you want your finances to be by the time you retire. It’s a smart way to build wealth without noticing it disappearing, too.
6.  Stay modest
As a student, you’ve lived on Ramen and water, so the continuous frugality once you have your new job out of college will be easy to maintain. Don’t pump the “extra” cash into the new luxurious lifestyle straight away, though. Think about moving all your newfound wealth into a savings account until you start to buy the big stuff in life. You can also use it to pay down student debt and get rid of that as quickly as possible.
7.  Learn some stuff
Well, more than stuff. Making money is one thing but making it grow is quite another. Managing your finances is something that you need to do your whole life, not just for a little bit of it. You need to make excellent investment decisions if you want your goals to be hit. You need to remain financially literate if you want to end up with more wealth, and it’s important to take time to learn about your finances and all there is to it, so that you will benefit later on.
8.  Take a few risks
It doesn’t feel like a good idea at first, but taking risks is better when you are young. You can make your mistakes early and learn things along the way. You recover more from the risks you take as a new adult than you do as someone on the cusp of retirement. So, move to that new city, take the job you didn’t think was a good idea at first if it’s going to help you to achieve your long-term goals. Get yourself on the property ladder and take a risk on a fixer-upper. All of these risks are going to help you to do better financially.
9.  Only borrow to invest
Using credit is important, sure, but if you’re using credit to have a more lavish lifestyle, don’t be stupid. Put it down and don’t borrow for that. The best way to borrow is for investments, not for a life to which you feel entitled. Borrowing money is important, but investment in yourself and your future means money well spent, not money frittered away on “things”.
10.  Enjoy freebies
There are very few things in life that are free, but the company pension plans are free when you think you’re not paying a fee for them. You should take the free money your employer is offering to match and run with it. Take advantage of the added boost the company pension will give you and don’t be afraid to enjoy the matched bonus your employer will pay as you go through life in your business. 10 Steps To Prepare For Your Financial Future
[a contributed post]
10 Steps To Prepare For Your Financial Future
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