Everyone at some point in life has experienced some financial distress. Although the actual definition of ‘going broke’ is fluid at best, it is a well-documented fact that even multimillionaires sometimes stumble into rough economic times, just like ordinary folks. It gets especially bad when that happens during old age when opportunities to redeem oneself are hard to come by.
With globalization and the cyclic nature of the economy nowadays, financial security has been elusive for the majority. You can have a well-paying job today and lose it tomorrow just because your employer decides outsourcing overseas is cool. It is, therefore, important to take steps early enough to cushion oneself from potential future financial upheavals. Below are some smart strategies you can use to secure your financial future.
Balance Your Life
A lot of people out there equate frugality and intensive saving culture to automatic financial security. It is however far from the truth. To realize the goal of life, which many describe as ‘the pursuit of happiness’ and financial freedom, you need to balance your life. That means taking the time to enjoy what today has to offer such as your family, friends and a career - while not compromising future possibilities. You, therefore, need to establish clear boundaries to limit yourself from over indulgence.
Invest in Yourself
The one asset that is almost impenetrable to external factors is the set of knowledge and skills that you learn during your lifetime. Investing in skills that will make you more marketable and increase your future earning power is crucial. It never gets too late to acquire a new skill and luckily, the digital world has provided us with numerous portals where we can learn income generating activities. Investing in oneself also means maintaining a healthy lifestyle by eating well and engaging in regular exercises. It is futile to have a lot of money and live a less than happy life because of poor health.
Have multiple revenue streams
The Baby Boomer generation had it going well in the past as most of them could fully count on their salaries to sustain their daily living expenses and have some funds left for retirement planning. Reality of the current generation is that jobs are not secure and the cost of living has skyrocketed. It is, therefore, important to establish a side hustle that can help you generate extra income to supplement your salary. There are numerous opportunities online, from forex trading to part-time online jobs. Sometimes these side jobs can end up being so successful, and you may want to abandon the regular job to focus on them.
Plan and take calculated risks
Ultimately, the most successful people in life are those who take a certain amount of calculated risk. Understand how to navigate the financial world and learn how to invest in the stock market or the many other avenues available. Your funds should always be out there working for you. In all these, it is prudent to involve professional financial advisors every step of your way. It is also vital to protect your family's future by ensuring that a good legal framework safeguards your investment.
Never spend beyond your means
This may sound like an ‘old folks saying,’ but its application is timeless. A lot of people today face temptation of maxing out their credit cards and other facilities ostensibly to spend on luxuries they don't need. The rule of the thumb is, if you can do without it and it does not add value to your net-worth, don't borrow to acquire it. Save - you will be able to afford the item in the future. Get in touch with us for more information.