How secure is your future? Undoubtedly, in today’s world, we all want to be secured. Everyone wants to be secure financially. To achieve this goal we should follow tried and tested practices. Here comes a quick question- What do Mukesh Ambani and you have in common? Can you guess? “The zeal to earn more everyday,” is the answer. But why many of us fail to protect our future? There can be multiple reasons like self-deprecating, lack of financial knowledge, downplaying our abilities, feeling out of place, lack of mental satisfaction, no specified goals in life and so on. We suffer considerably but the major blow comes financially.
Here are some of the best tips you would love to know about protecting your future:
Start making compelling goals: Manage your money wisely, and you will see that you have started moving towards a secure future. Your goals should be specific. For instance, if you want to receive a retirement pension, you would have to plan from today like how much you need to spare every month to get the benefit of pension after 30 years. Similarly, decisions related to buying a property, car, going for some international trips, paying premiums for your insurance require a systematic managing of finance. Map out your goals in advance and start prioritizing them.
Identify between short-term and long-term goals: Debt comes with years of grief and regret. And therefore, it should be considered as a long-term goal. Similarly, purchasing a property or a luxury car and receiving a retirement pension should fall into long-term goal category. Short -term goals should include how to manage your daily budgets, keeping a check on the credit card use and making small fixed deposits every two months.
Spend less. Earn More: Unexpected emergencies come with no news. Does it mean that we have to take loans for meeting them? No. The answer is we should start saving from our fixed income, so, in times of emergencies, we can cope with them with confidence and without fear. Investing in small FDs, RDs, bonds, equities, and commodities can be fruitful, and we can multiply our limited funds.
What’s in the credit score? Let’s recall the famous quote by Tyler Gregory which says, “If you don’t take good care of your credit, then your credit won’t take good care of you.” Make sure that you have a good payment history record because these records are always checked and considered by the Financial Institutions whenever you require a loan. With a good payment history, you might get a new loan at a customized interest rate which is the clasp of peace for many.
Make sure you work for self-improvement and start investing small every month. Year by year, you will see the large pool of money in your account. Just think about the palm trees on the horizon of future which always strives upwards.
