The future of your finances is so important. Are you thinking about it? Are you preparing for it?
Money is one of those things that we find to be essential in life but rarely do we look beneath the surface to really see where our money is going and how it’s going to be spent.
Our financial future is something that we should definitely look after. Unfortunately, it’s challenging to keep tabs on everything, especially once we start raising a family and getting involved with large mortgages, loans, and other financial responsibilities. Your financial situation is always in a state of flux, hence the importance of really looking into the future and deciding where you want to go with your finances.
This might sound vague right now, but we’re going to discuss a few considerations that you should always have in mind when it comes to your financial future.
Have you given a purpose to your finances?
Everyone should know that saving money is something that we have to do in order to secure our financial future. After all, if we have more money in the bank when an emergency occurs, it’s far less likely to have a negative impact on our wellbeing and life in general. By having a large pool of savings, we can essentially limit the harm that comes to us and maintain financial stability.
Unfortunately, that’s usually not the best use of your money.
When it comes to securing your finances, saving money is arguably one of the worst ways to achieve stability. This is because money inflates over time and the value of your savings is slowly going to drop if you don’t do anything with it. In other words; if you’re idle with your money then you’re going to slowly lose it until it reaches a point where your savings from 10 years ago are going to be worth a fraction of what it could’ve been.
So what do you do to prevent this? It’s all about giving purpose to your money.
Ideally, you should always have some kind of plan for your money in both the short and long term. For the long term, you could be saving money for your child’s college tuition. It could be to create an emergency fund. In the short term, it should be about taking that money and growing your wealth in different ways.
For instance, you could consider starting up a business with the funds that you’ve accumulated. Granted, this isn’t the easiest option but it is one of the most stable in terms of financial growth. It will create new opportunities not just for yourself, but also for your family. Not only does it help you secure more income, but it could be a job opportunity for your children in the future. It could even turn into a family business if you’re diligent.
But it’s not really that easy.
One of the problems with running a business is that it takes time, knowledge, and a lot of passion. You could do something related to your hobbies and skills. However at times it’s usually not going to get you as much money. As such, you’ll need to invest time into learning new things, developing new skills, and also following trends.
There are loads of roadblocks along the way too. For example, growing a business might require you to learn about industrial or commercial tools and equipment like water cooled chillers, heavy machinery, or even study a bit of business law. There are so many considerations to keep in mind that it can be overwhelming for people. However, there’s no doubt that starting up your own business is certainly a great way to secure your future.
But this is just one of many ways to do this. There are also other methods such as investing in property, buying stocks and shares (which can be risky if you’re not careful) or even considering low-risk investment options. While they might not give you a huge return, it’s far better than locking away your money in a bank account that accumulates a tiny amount of interest that is barely enough to cover inflation.
A secure financial future for your children
Even once you’ve established a steady level of income and are able to afford everything that your family needs, your work isn’t over. You’ll also need to start talking to your child about money. While you might hav the knowledge about running a business, investing, and being frugal with your finances, it doesn’t mean that your family knows.
This is where it helps to sit your family members down and talk to them about money. Showing your children the value of money, and helping them understand where it comes from is important. Also how to save it and how to grow it is incredibly important too. If you don’t prepare your children for their future finances they might struggle with finances later in life.
Of course, this only really applies to people that are planning to have children. There are still many people that don’t plan to start families. They are content living with just their partner or even living alone. Estate planning when you have no children or heirs can be a complicated subject. It’s best to speak with a financial advisor to give you an idea of what your options are.
However, most people don’t really want to talk about the far future. While it’s fine to play around with thoughts of the future and start loosely planning what you want to do, it’s hard to tell what the future holds. Regardless, we hope that this post has taught you a couple of important financial lessons–especially when it comes to the art of saving your money with purpose. Don’t just assume that your money is going to retain its value if you just leave it in a bank account. Do something with it and secure your financial future!