Securing Financial Future – 9 Ways To Safeguard Your Finances
How To Secure Financial Future
One of the stepping stone to safeguard your financial future is planning at an early age OR when you start earning and have no burden of debts, loans etc. Listed below are the 7 things to accomplish your financial goals:
- Plan your long term (greater than five years) and short term goals (less than 5 years): This should include – what you want to buy or do in the near future. This can be anything – buying a house, higher education for your children, money needed after your retirement. Set time frame for all these necessities i.e. when you want all these things. Accordingly, strategize on achieving your goals which help you to understand why financial planning is important.
- Diversify Your Income And Save For Emergencies: Imagine you’d put all your money in shares and the market crashes unexpectedly and at the same time sudden money need arises. You’re left nowhere in such a situation then to sell the shares in losses. So best advice is to spread your investment portfolio.
- Get Insured: Having insurance assets like house, auto, business etc. will compensate your losses when any damage affects these things and is must to secure your future. Amongst the many benefits of having an insurance is that your insurance company will either pay for the losses or compensate. Of course, you need to know terms and conditions mentioned while taking any policy.
- Pay First: You should pay first even before the last of any of your bill. Start saving on smaller things in life, be it – home loans, mobile bills, groceries, hotel etc. Overdue payments will burn your wallet badly. So cost cutting, is what you should teach your family members and is important step in securing your financial future.
- Lower your credit card debts: Pay your bills before the interest haunts you. Never owe money on credit card. Negotiating for lowered rates with your credit card company reduces carrying your balances. Remedy the unexpected money requirement by opting for a personal loan. Make use of card which gives you very low rates and terms.
- Make a Will: Secure your family in the event of untimely death. Not having a will creates a burden on your family because division of your assets in such a situation involves further legal involvement. And either the government body or a lawyer becomes decision maker.
- Save for children before they’re born: Child birth brings in joyous moments for their parents but what comes along with the child is increased cost of loving and responsibilities. You can think on investing even before he/she is born, so that money received after a certain interval can be effectively used for their education, marriage etc.
- Safeguard your job in recession time: Remember the great depression of 1948, 1953, 1960, 1973 to list a few and the ongoing one which started in 2008 where millions of people went jobless and had to utilize their savings to run their families. One of the best solutions to stay ahead during such a time is safeguard your job in such a way that, continue excelling in your job and prove your mettle in every task in hand, keep on educating yourself.
- Portfolio review: Your goals in life can change and accordingly you need to adjust the investment portfolio. Always take out time (may be, quarterly / every six months) and re-plan your portfolio so that changing economic policies and personal goals are aligned with your goals.