When you’ve worked hard for something, you want to enjoy the fruits of your labor. And while you may be checking items off your bucket list… are you totally prepared financially for the future you envision for yourself? If your answer is no, we’re giving you a few simple tips to help you start looking at your finances differently.
establish a strong nest egg
Life may be rosy now. Everything may be going as planned – a nice job, a paid for car, and no credit card debt. But the funny thing about life is that you never know what may happen next. The best thing that you can do is to insulate yourself with strong savings.
While you may want to start saving for your next vacation, a home makeover or even a new car, the first line of financial security is an emergency fund. Setting aside money for the unexpected is important. It’s the difference between a new set of brakes wrecking your monthly budget, or just taking a little off your cash stash. Emergency funds should be separate from your general savings. This account is designated for the unplanned and the unexpected.
tip: start with an emergency fund of $1000. Then, add to it regularly until you have 3 full months of expenses saved.
don’t be afraid to invest
We all want our money to work on our behalf. But if you’re stashing cash in a savings account and you have a healthy emergency fund, it may be time to start researching ways to invest your money. The trick is finding an investment that matches up with your interests. When you have a genuine interest in what you’re investing in, you’ll be more involved, attentive and proactive in your efforts. For example, if you love architectural and interior design, you may want to consider investing in real estate. Or, if international travel interests you, look into international currency trading or investing in airline or hospitality companies.
protect your assets
None of us want to think about a time when we’re not here anymore. However, the reality is that nothing in life is certain, except death. You’re working hard to establish a legacy, make sure you protect it. It’s up to you to ensure that your assets are passed down to the people you love. No matter how uncomfortable the topic, it’s important that you seek advice about estate planning. And if you have dependents, it’s also beneficial to invest in life insurance. While you may not have been thinking this far ahead in your financial planning, preparing now will provide peace of mind and protect your wishes.