Steps You Must Take To Protect Your Future Finances

| May 21, 2016 | 0 Comments

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Are you worried about the future of your finances? Maybe you should be. After all, there’s no guarantee that the situation is always going to be as rosy as it might be right now. You could hit financial hurdles in the future that you’ll find difficult to come. Redundancy is something that may want to consider. If you’re made redundant in an instant, you’ll lose everything. You won’t have a wage, and you will be immediately reliant on your savings. Depending on how effectively you look after your money, you might not even have any. That’s why it’s important you start taking these steps right now.

Save A Little A Lot

The first piece of advice we can offer is that you do start saving as much money as you can as soon as possible. The best way to do this is to plan a budget to live on. Once you’ve got a budget, you’ll be able to work out what you will be able to afford each month, based on the worst case scenario. Worst case scenario means that you have a lot of bills to pay you simply were not expecting. For instance, imagine if you crashed your car and needed to pay for repairs.

We imagine, you’ll probably be saving a small fraction of your monthly income. That might be as low as ten percent which could be just one hundred. That’s not going to get you very far but keep saving, and it will slowly grow. As well as this, we imagine your career prospects will improve. That will mean you’ll be making more money.

An extra tip is to set up your savings like a direct debit, similar to a bill. That way, you have no choice but to pay it each month. You may also want to lock your savings in a fixed account. Then, they can’t be accessed even if you wanted to.

Invest Wisely

You do need to think about investing your money as well. It’s not enough just to save it. You have to think about how you can grow the amount that you save. One possibility to consider here is a self directed ira account. With a self-directed account, you’ll be able to choose what investments you make. The money you make will face a reduced amount of tax and you won’t need to worry about losing it. Your money will be protected.

Another extra hint is not to invest in a source that you don’t understand. This is the easiest way to lose your money without understanding why.

Go Green

You might be surprised by just how much you’ll save if you make sure your home and lifestyle more green. What we mean is that you shouldn’t be wasting electricity and other sources of energy. Instead, you should be doing everything you can to cut back. Start with simple changes like switching all the bulbs in your home to LEDs. Then you can think about bigger things such as solar panels on the roof if you own your house. This will save you a fortune in electricity through the summer, and it’s a great investment.

Category: Personal Finance

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