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Ten Financial Steps To Take To Secure Your Future

It’s always a bright idea to plan for the way that you want your life to go. We actually do this from a very young age, from the moment that we get asked what we want to be when we grow up. We consider our options from that second that we are asked, and everything that we do in school and college is designed around those dreams. When we are planning out our lives, we think about the places that we want to travel, the careers that we want to do and how we plan to get there. If there is one thing that we should be considering, though, it’s the financials behind those plans. Every dream you have is only a dream until you start acting on getting there, and once you do decide to act on those dreams, they become goals.

Being financially secure isn’t just about retirement, although this is a pretty important consideration to make seeing as retirement doesn’t have the same level of a salary as your career did. The thing is, you want retirement to be a time to actually take a break from the hard work that you have put into your life. It’s your turn to stop and smell the roses, see the sights and do whatever it is that you want to do while you’ve got the time to do it. To be able to do any of that without stress, you have to ensure that you take the right financial steps early on so that you can be secure later. Those that are under 35 don’t often think too hard about the future – well, not forty years ahead. This is because we live in the here and now and not in the mind of a retiree. There are a lot of things that the under-35 group have to buy for the first time; mortgages, cars, education, etc. These expenses are hefty ones, and while those things are being paid for, there are also considerations to think about starting a family and expanding a relationship. It’s all very stressful, which leaves very little room for thinking about the twilight years.

The good news is that working toward a future that is financially secure doesn’t have to be a huge change to what you’re working for right now. You don’t have to deprive yourself of the things that you want now and stuck in a perpetual state of waiting around for things to happen. Finances are a source of stress for a lot of young people, but with some simple planning and a lot of forward thinking, you could be enjoying the life you lead right now while you’re setting yourself up for a secure future later on. Still struggling to believe it? Well, here are ten steps that you could take to secure that financial future.

Find A Balance

Living a successful life, one that brings in the money that you need to run your life the way that you want, requires you to find a balance between work and family. You do not need to wait to be happy; make yourself happy and secure in any way that you can with your job, and you’ll be able find financial security. Balance is important here, because you can’t work yourself to the bone for your finances if it means sacrificing anything you enjoy.

Your Best Asset Is You

Who is the person going out to work and earn the money for themselves? You. Who is the person who has the skills and knowledge to secure your future? You. Who is the person climbing the career ladder and expanding their salary? You. Your skills are the biggest asset you have and investing in those skills and in your education are going to get you where you want to be far faster than you expect.

Protecting Yourself Is Key

When you have a family, you need to ensure that not just your financial future is secure, but theirs, too. Getting life insurance quotes from a young age and setting up investments like savings bonds and stocks can mean that you are able to protect your family should anything happen to you. Setting up a Will alongside nominating a power of attorney and an executor of said Will early on, can mean that you are covered in every possible way when it comes to your health. Insurance is so important; you wouldn’t drive your car without it, so why would you live your life without it?

Plan, Don’t Save

Savings are great to have, don’t get me wrong, but if you plan to save all your money, you’ll forget to plan to spend it. Having a successful plan in place is what will bring you the wealth that you want to see. Write down your goals and how you plan to achieve them, and you’ll be able to watch your money grow as you age.

Live A Modest Lifestyle

Splurging all your money and living to the edge of your means every month won’t work when you want financial security. Of course, after spending so long as a frugal student, you’ll be itching to spend a little more than you’re used to. The key is to look at your lifestyle when you didn’t have much, then make small adjustments so that you have a little bit more but then are saving the rest. Excess income is nice to have but only if you use it the right way in the first place. If you simply adjust yourself to spend what you’ve got, then you’ll never have the surplus for retirement.

Learn About Money

You can make money in your job, which is the easy part; once you’re in a role, money is easier to come by. However, saving it, investing it and watching it grow takes a little more than that. It can seem like an overwhelming thing to consider, but you have to realise that – as with anything else – if you learn about it you can achieve it. Take financial planning courses and learn what investments mean. Once you understand smart money management and investment, it all becomes that little bit clearer for you.

Take Some Risks

It’s far more fun to take risks when you’re younger, than risk your finances when you’re older. You could choose the secure risks, though. For example, choosing to emigrate where you can earn the most money is a risk in the sense it’s somewhere completely new, but it is also a great adventure to take for yourself. You could also choose to go back to school and learning something new, which is always a risk as it interrupts your day to day living and paying bills. Always weigh the pros and cons of every risk that you choose to take, and you will make the right decisions for yourself and your finances.

Borrow Money

It’s a bit of advice that never seems to go down well, mainly because people assume that borrowing money is only done to enrich a lifestyle. The thing is, if you started a business, you’d borrow money. If you bought a house, you borrow money. This type of borrowing is an investment, and it should always be looked upon that way. Building wealth by investing is a smart choice to make for your money, and you should always do it if it means a financial gain for you in the long term.

Take The Freebies

If your employer offers you a company pension plan, take it. If you can contribute your savings to an IRA rather than a standard account, do it. Financial freebies are better for you in the long term and they serve to boost your finances, rather than lower them.

Right Now Plan

Planning for retirement is one of your long-term goals and things to do. What you shouldn’t do is panic about it. The way that you set up your finances in the meantime is what will serve to cement your future anyway, and if you have a plan for right now, rather than a plan for retirement, you’re going to be far better off than you were previously. Thinking about your life right now can be how you build the foundations for the future that is yet to come.

Your financial future should be as bright as possible if you want it to be successful. The only person who can put you in a good position financially, though, is you. If you can do things in a way that you can see that you are your best chance at a secure financial future, then you’re going to be able to feel like you’re achieving something. Staying balanced in your work and family life is how you can stay relaxed and in charge of your life.

Make the dreams into plans and you will be able to make your future as bright as your present.