When you are young, life seems to last forever and every bit of money that finds its way into your pocket is for spending. Money quite often flows through our lives without stopping for much of our youths. But we live in times of such big financial changes, it...read more
When you are young, life seems to last forever and every bit of money that finds its way into your pocket is for spending. Money quite often flows through our lives without stopping for much of our youths.
But we live in times of such big financial changes, it is hard to know what our own future may hold, nevermind that of our children. A decade or so ago saw many of the world’s leading banks collapsing causing a global credit crisis. Political shifts often see changes that have a massive knock-on on the economic prosperity of the individual, and these things cause rapid increases in the cost of living. You may not be able to bank on being able to earn money in the future, and you may find that big technological changes may impact your job and future earning potential.
With all of this uncertainty in mind, it is a good idea for you to get hold of your finances early on and start to plan for the future.
1. Keeping your estate in order
You may want to start off by thinking about the extremities of your life. Worrying about what will happen to your money after you die is important. If you do not make plans for this now, then someone else will have to do this in the future. This will more than likely be a close family member who will be grieving at the time too. Helping out the executor of your will by getting your estate in order is a good idea. They will be responsible for going through your finances and dealing with your debts and assets. You may want to look at getting Family Funeral Cover so that you are not leaving a cumbersome undertakers bill for someone else to deal with.
While you may not know when you are going to die, many people get these things in place decades beforehand so that there is not a rush to do it if they ever got suddenly ill or had an accident.
2. Invest in your future
There are many ways that you can invest in your financial future, but to create security in your investment it may be worthwhile spreading your investments across a range of different products.
A major buzzword in the financial sector these days is cryptocurrency. There are currently over 2000 different cryptos out there and the number is set to grow. These are digital currencies that get passed around using a system called the blockchain. Bitcoin, the most popular has risen from just a few cents per unit to tens of thousands of dollars. While it is unlikely you will see that kind of rise in value if you did invest in bitcoin, they are certainly something that shout be watched for their potential over the next few years.
4. Stocks & Shares
A medium-term investment may be stocks and shares. Buying up parts of businesses and then selling them when the value has risen has always been a popular form of investment. There are obvious risks when it comes to shares. Companies that you are invested in could go out of business and you will be left high and dry. Keep an eye on where your money is invested and move it quickly if needed.
Bricks and mortar is something that people will always need, so buying property can be a very savvy investment and one that is worthwhile considering. If you are in a position to buy a cheap house for cash at an auction, you could restore it and sell it again after, making tens of thousands in profit.
The other option that you have when it comes to investing in property is to have a house that they rent out. This will provide you with a regular passive income throughout the time when you own the home and have tenants living there, This monthly income could be very handy right now, but if you ever needed a lump sum later on in life, then you could get this by selling the home.
Of course, to get to a stage where you are able to invest fully in the future, you need to be putting away money right now. If you are currently in any debt, get this cleared as early as possible and then cut up your credit cards. Then, to make the most of your income, spend some time creating your own spreadsheets to manage and track your personal finances.