Dealing with your finances gets more and more complicated as you get older. After all, you’ve got rapidly growing kids and the shopping world is getting more and more expensive – securely paying for everything can get a little tricky! And that’s why you’ve got to do a little bit of legwork in the here and now; you need to know your finances are going to be secure for the future, for the good of both yourself and your family.
However, getting to a point where you believe you’ll be just fine with no renewable income and just a pension payment in your pocket is hard. It might seem like a long way away right now, but the future hits us all much sooner than we think! So, in the interest of ensuring you’ve got everything you need for a good financial future, let’s go through some proactive points below.
When Your Savings Just Aren’t Cutting It
Sometimes, even with how diligent you are over your saving habits, your savings account just isn’t cutting it. You can worry for nights on end about how you’ll be ill prepared for an emergency, or how you won’t be able to get a retirement fund together any time soon, and you simply can’t afford to ever go on that cruise – coming to a realisation like this can be really difficult, for many reasons. Most of all, it’s something you don’t want to have to face during difficult times like a pandemic or a job loss.
However, when your savings aren’t quite cutting it, your plans don’t have to halt or end there. You can supplement your savings and your savings plans with quite a few things, such as pooling your money with another, trusted source, ‘supercharging’ your savings with a specialised investment account, or through an insurance policy.
The latter option alone is a great thing to think about for your future right now, and probably the most accessible of all the supplements mentioned above. Indeed, there are many different forms of insurance that could help you out here, including specialist policies for your home, your home’s contents, and life insurance – you can use this over 60s life insurance calculator, for example, to work out what you’ll need as you get older, based on what you have now.
Aim to Diversify Your Income
Diversifying your income is a good thing to do, in case your job goes under, or your circumstances change, and you’re not in a position to take care of yourself and/or your family for an indefinite period of time. Having a form of reliable and secure income is one thing, of course, but if you’re someone who freelances or runs their own business, this is definitely a good option to think about.
Most people will make about 80% of their income off of one source, and then 10% off of 2 or 3 other forms of their income – however, if you can bridge the gap here, and make yourself less reliable on the former line of work, you have the chance to work on making your other income sources much more lucrative. Indeed, you can find a guide to starting on a journey like this right here.
Don’t Leave Any Debt Behind
Finally, if you have debt to deal with, it’s imperative to not leave any of this behind as you get older, or as your children get older. If you do, they’ll be more than likely left to deal with it, and that’s not a good way to set them up for their financial future – it’s all intertwined like this!
Paying off your debt should be the first thing to do when you come into money, or have the chance to re budget and allocate your resources out accordingly. Tackling debt leads to a much better credit score, which leads to a much better chance of getting what you want out of life, such as a new house or a new job. It also ensures you’re not living with a debt headache, and that’s the kind of stress you don’t need in your life right now!
Your financial future can be secured right here and right now, as soon as you take the power into your hands to focus on your money, your debt, and the way you save and/or supplement your savings. Make sure you keep the above tips in mind if you’re in a tight spot with your finances as a family.