It’s always important to think about the future when thinking about your finances. If you’re too focused on the present, you do not see the bigger picture, and that’s a problem. It might mean that you end up borrowing more than you can afford because you’re not worried about the ramifications of this choice. You may, for instance, think about taking out a loan on holiday. You’re not going to have the money to pay that holiday off, but that doesn’t matter. It’s a problem for the future, right? Wrong, because it’s going to start affecting your life right now. If you don’t do something about any issues in your financial situation today, it will soon be too late. So, what type of changes do you need to make to your finances this year?
Economic experts suggest that you save around a quarter of your monthly paycheck and put it into savings. It should be noted here that these savings aren’t for buying the sofa that you want at the end of the month. Or, to dip into when you need some cash for your holiday. Rather, the savings are for a time in the distant future when you might need money. Ideally, you won’t dip into your savings until you retire and start living a life without a permanent income. Shockingly, reports have revealed that a lot of people are dipping into their savings far earlier. In fact, many people are spending their pension pot as early as thirty and forty. Again, their mind is in the present which is a fun way to live life. But, it could leave you in a dire future condition. Think about what happens when you’re unable to work full time. If you’re struggling to save, there’s a simple solution. You need to start thinking about this money like a tax. It’s not really yours and as such, it needs to leave your account each month. If you do dip into savings, make sure you’re putting whatever money you use back as quickly as possible. Otherwise, you will rapidly end up with nothing.
You might have heard that buying property is just as bad as renting. Particularly, if you’re living on a limited income. Indeed, researchers have suggested that many people end up in debt because they were unable to afford expensive mortgage payments that grew out of control. But there is one advantage of buying property that can’t be overlooked. It’s a great investment. Once you have a piece of property, you’re always going to have something to fall back on. Hypothetically, you should never end up in unmanageable debt if you own a piece of property. If the worst happens, you can sell the home and use all the money to pay off the debt. It’s hypothetical because some people do end up with more debt than the cost of an average home. If you’re buying your first home, you might not know where to start. The best advice would be to look at online conveyancing. It’s a great place to begin because they can handle everything for you and make the whole process for you. They may even recommend some properties you should look at based on the amount of capital you have.
Build A Second Income
Next, there’s something that all accountants agree on. In this day and age, you should have at least two incomes, not the typical one. That’s how you get rich and make sure you’re living comfortably in your twilight years. Now before you start to panic, this doesn’t mean you should be looking for another full time job. If you do that, you’ll drive yourself mad with stress and exhaustion. Instead, you need to consider a side hustle and here’s an example. You might work as a journalist, delivering content to a Newspaper on a regular basis. But, you can also work to setup yourself up as an independent, copywriter or blogger. You can set this up as a side hustle without taking too much time out of your day. Eventually, you’ll find that something like a blog actually starts to run itself. You can buy content and all you have to worry about is maintaining the quality of your online brand. It’s just one example of course, and there are many more. You just need to find an extra job that suits you. Remember this is going to eat into your spare time so it should be something that you enjoy.
, by Stacey