Securing your financial future is important. Whether you’re 20 or 50, it’s never too late to begin taking care of your financial future. But the earlier you start to do it, the better. It’s especially important if you have a family to look out for.
Taking care of your financial future often means changing your behaviour, and even changing your mindset. You must unlearn the things you unconsciously picked up regarding money and spending habits when you were young, to get the best outcome. We learn the majority of our habits and behaviours from our parents, and if they weren’t very good with money, you likely won’t be either. You can’t help that, but it’s up to you to change something if you want a more secure future.
Here are 13 working tips that will help you to secure your financial future:
Commit To Making It Your Focus
First of all, commit to making this your focus. Where focus goes, energy flows. You can’t just give it a thought here and there and hope the numbers will take care of itself. You have to want this enough and be willing to take the steps required to get to where you want to be. It could mean changing how you live quite a bit.
Set Your Goals
You can’t expect to secure your future if you can’t set goals for yourself. Goals will help you to stay focused on what it is you truly want. Without a goal you’ll probably find yourself meandering, not really making any progress, and wondering what it’s all for. Do you want to have a large emergency fund? Enough to buy your own house or put down a deposit? Make sure you have both big and small goals. A small goal could be making sure you consistently live below your means. More on that later.
Come Up With A Series Of Steps To Help You Reach Your Goals
Now, try breaking down your goals into baby steps so you can reach them easily. It doesn’t matter how fast you move; what matters is that you’re constantly moving in the right direction. Just keep taking those baby steps, attempting to move forward, and you’ll get to where you want to be.
Remember that your progress might not be linear, either. It may be a case of taking a few steps forward, followed by a few steps back. That’s normal, and totally fine! Just keep ploughing on and going after what you want to achieve.
Invest Your Money
Investing your money is a key element to securing your financial future. Nobody ever became wealthy and free from money worries with a 9-5 job and a little bit of money in the bank. You need to make sure you’re investing your money in places that make sense to you, so you can secure your future properly. Those who don’t invest their money will eventually run into the issue of running out of time to make more money, and savings are limited too. When you make investments, you can usually trust that you’ll continue making money and building wealth in the long run. You can invest in gold, stocks, shares, and even property. You can take a look at this hundred palms residences review to get a feel for whether this is the sort of property you’d like to invest in, or whether you think something else will be best for you. Diversifying is a must if you want to get the most out of your investments. Get a professional to help you if you don’t understand what all of this means!
Commit To Living Below Your Means
To secure your financial future, living below your means needs to be the norm for you now. You need to be prepared to stop spending in the way you’re used to – to think before you make a purchase, and only purchase what you need. Most people live above their means, or spend all the money that they have the moment they get paid and end up never putting any of it towards investments or savings.
When you commit to living below your means and changing your lifestyle, you’ll have money consistently left over to put towards your future.
Spend More Time With People With Similar Goals
The people you spend the most time with are the people you become most like. Studies have proven this. If you’re spending time with people who don’t look after their money, or who have bad attitudes with money, say how broke they are, and do similar things, it’s likely you’re going to end up doing the same thing.
This doesn’t mean you have to cut out family members and closest friends; it just means you’re going to need to find people who are on your wavelength and spend more time with them. When it comes to people who aren’t doing what you’re doing and only seem to want to complain about it, try not to get involved in conversations with them about money, or anything that could change your attitude.
Save Money No Matter What
Make sure you get into the habit of saving money no matter what. The earlier you can get into this habit, the better. You should aim to save up an emergency fund that will cover you for 6-12 months of expenses should something change. When you’ve done that, it’s a good idea to look at investing instead, as outlined above – savings will only depreciate, while investments tend to appreciate. You will also be able to focus on your children’s savings, if you want to put money to one side for them for their education or when they come of age.
To make sure you don’t even have to think about it, consider setting up a different bank account and a direct debit alongside it. When the money just leaves your account without having to do anything, you’ll have to let it happen. If it’s up to you to make sure the money switches accounts, you might end up changing your mind or not saving as much as you wanted to.
Diversify Your Income Sources
Diversifying your income sources is one of the smartest things you can possibly do if you want to protect yourself in the long term. You may have a 9-5 job, but that doesn’t mean you can’t work on other ways of making money to really give you security. Many people want to work towards financial freedom, and the best way to do that is right now. Here are some pointers that could help you:
- Look at passive income streams, such as starting a vlog, a dropshipping business, or becoming an affiliate.
- Is there something you can do on the side that won’t take up much more of your time?
- Could you rent out your driveway, or a room in your home?
Do your research and consider all the ways in which you could begin making money, and just pick one to focus on.
Get Out And Stay Out Of Debt
Debt can feel like a weight on your shoulders, so make sure you get out of it and stay out of it. It’s a good idea to get out of debt before you put any money into savings, as you’ll be paying more interest the longer you’re in it, when you simply could have paid it off in the first place, and then put the saved interest into your savings on top of this!
It’s good to have a few small forms of credit to improve your score, providing you know you can pay them back on time and that you’re not going to spiral out of control. There are different methods to pay off debt, so take a look at them and see which of them suit you. If you’re still struggling, speak to a financial advisor!
Assess And Improve Your Relationship With Money
If you’ve struggled with money your whole life, don’t underestimate assessing your relationship with money. Write down everything you believe about it. Do you think it’s hard to come by? That it’s the root of all evil? These attitudes can stop you from making any money at all. Read books like ‘Think and Grow Rich’ to help you get into the right mindset.
Get Appropriate Insurance Cover
Insurance will protect you, so make sure you have the appropriate cover in various areas of your life. It is scary to think almost 50% of UK parents don’t have life insurance.
Wait Before Making A Purchase
We’ve all felt that burning desire to buy something right away, even when we don’t really need it. The key is to force yourself to wait a while. After a couple of weeks, if this is still something you’re thinking about, allow yourself to buy it (some people like to wait a month). If you’ve forgotten about it, it shows it was never a good purchase in the first place!
Always Find The Better Deal
Whether you’re utility bills or a gift for a special occasion, always go out of your way to find a better deal. Comparison sites are great, but look for voucher codes too!