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Your Money Needs More Than A Quick Fix, It Needs A Lifetime Plan

Your financial future is about more than tomorrow. Financial short-sightedness is one of the main reasons that a lot of people stuck in bad situations stay there. You need to think about more than the next opportunity to turn everything around at once. Instead, you need to have your eye on the little changes and the long-term plans they contribute to. You need to think far into the future, even beyond your own future to your kids. Here’s how you start building a legacy of financial excellence.



Be goal oriented

Budgets are about more than getting an idea of where your money is going right now. They are tools used to help you start putting some money aside. They make sure that you’re not funding a lifestyle too expensive for how much you have coming in. You need to organize your finances into essentials, lifestyle expenditures and leave some untouched. That untouched money should be going strictly towards financial goals. Goals like hitting a certain amount in your savings or getting rid of debts. Set yourself milestone rewards and see how long it takes you to hit them. When you use the milestone method, it’s a lot easier to get rid of negative thoughts like ‘I’ll never have enough’ or ‘I’ll never be out of debt’. Show yourself that your goals are achievable by building up on them slowly but surely.

Get the whole year organized

Finances require a lot of organization. As well as having those small goals, you need to have a whole plan laid out for the year. Set yourself up with a financial calendar and stick to it. For instance, in January alone, you start by resetting your budget. Then you organize your savings account, your retirement payments and map out a travel budget for the year’s vacations. In February, you start collecting the necessary documentation for the tax forms and apply for any eligible financial aid. Each month should set out these tasks as organizational milestones to go along with the financial one.

Diversifying your savings

We all use savings to make sure that we’re protecting our money from our own spending habits. What you shouldn’t do, however, is keep a ‘one-fits-all’ kind of savings account. Instead, you need to split your savings up to deal with different goals and plans. You need a long-term savings account, one that you don’t touch as much as possible to benefit from cumulative interest. This should be kept separate from high-interest savings accounts that help you reach goals in the next six months to a year. Then you should consider keeping an emergency fund that’s set aside for providing when you hit some financial turbulence. These savings should be roughly three-to-six month’s wages. This makes them particularly helpful if you fall out of employment.



Savings aren’t enough

If you really want to build up a lifetime’s worth of wealth, you can’t be putting all your money in your savings. It simply doesn’t offer fast enough growth. Instead, you need to look at ways of making your money work for you. We’re talking about investment, of course. Investing is intimidating to a lot of people who are afraid of venturing into markets they don’t understand. So you should consider saving towards investments you can understand. For example, you might seek to invest in someone’s business. Or you might look to get your foot in the property investment market. Whichever way you go about it, if you want to build real wealth, you need more than savings.

Use your credit when it matters

One of the tools you should be using to take your first steps in financial investment is your credit. A lot of people get into trouble using their credit because they use it wrong. Credit is not there to fund a lifestyle. It is there to help you get to the next level with your finances. You should be using it to fund investments only or to get out of financial trouble. It’s entirely possible to live without having to rely on your credit altogether. Don’t make the mistake of carrying around a wallet full of credit cards. This is a mistake that’s made more by younger people, so you need to drill that into your head early. Get too liberal with your credit and you’ll be facing down debt for years to come.

Know how to regain control of your finances

Of course, debt can rear its ugly head to just about anyone. It can plunge you into a panic, especially if you don’t know how to deal with it. So you need to have debt management plans prepared in advance for when that situation arises. First, you need to prioritize your debt. You need to tackle those that are smallest and the largest interest first. Getting rid of small debts helps you gain momentum, which is important for motivating you to continue fighting debt. You should also check out any methods of consolidation. It can be a way to lower the interest and make it easier to tackle.



Leverage your work

Your career is going to be a big factor in how much you’re able to save and grow your finances. If you can’t put together the money you need to start saving and investing, you’re living from day to day. So you need to know how to use leverage to get a better deal from your career. One idea is to do some independent research on salaries in your industry so you can make an informed appeal to your employer. You might even want to consider using that emergency fund to support you while you switch careers. Whatever your answer is, you need to realize that your job is a fundamental factor in planning your finances. If it’s not working for you, you have to take a risk on changing it.

Ensuring you’re protected

While you’re building on your finances, life goes on. It has its ups and downs and many of them can have a direct effect on your money. So, how do you ensure you prepare for those? The emergency fund is a start, but it should be saved for the direst of situations. Instead, you should consider what kind of insurance is going to help you protect all your finances from those sudden disasters in life. Most people will have health, home, and car insurance. But what about disability insurance or liability insurance? You need to take a closer look at the plans out there and see if they have any more protection to offer you.

Think about the end of your career

Then there’s looking at the future where your job should no longer be a concern because you should no longer be working. The earlier you start to save for retirement, the better. Freeing yourself up from debt should be your first step. The sooner you get rid of the restraints on your finances, the sooner you can contribute to your future. If you can, it’s a good idea to match the maximum your employer is able to offer towards your retirement plans. If you’re not sure how much to start contributing, you can even use a retirement savings calculator to help you figure it out.



Providing for your family

Naturally, if you’re thinking about further in the future then you need to think beyond yourself at some point. If you have a family, how are you going to ensure they’re provided for? How do you make sure that the wealth you build in life ends up in the hands it’s supposed to? Regardless of what age you are, you need to consider getting your affairs in order for when you might not be around. Especially if you have assets that you don’t want to see end up in the wrong hands. You might want to consider getting in touch with probate lawyers to find out what you need to know about what happens after you’re gone.

Make sure you’re teaching your kids

If you have children, you should be leaving them more than assets. You should be leaving them with the knowledge and means to stay in control of their own finances. The truth is that kids don’t get educated in school about money and too many parents assume they do. Meaning that they’re a lot more likely to make mistakes when young that will affect their lives for years. You should be the one teaching them some of the most important money lessons in life. You should be teaching them about compound interest, about taxes and about investing. Give them little amounts as they grow to experiment with, help them build the knowledge they’ll need to financially stable in the future.

Protect your money and build on it. Start getting financially literate so you never lose control of your cash flow. Think about what happens to your money even after you are gone. No matter what age you are, building a financial life plan is always a necessary step.


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One Response to “Your Money Needs More Than A Quick Fix, It Needs A Lifetime Plan”

  1. […] could always look for new ways to make money. Of course, if you have a broken leg, you won’t be able to move around much. This is something […]

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