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What money hacks can you implement today for a better financial future?
Whether you are thinking in terms of next year, or 20 years something that you will want to be sure of is that you will want to be financially comfortable and live the life you want. Of course, that doesn’t just happen overnight.
In fact, it takes a lot of smart organization, discipline, and hard work to provide for your future financially. Luckily, you can read all about this, and even get some awesome money hacks, tips and tactics on how to make it easier if you read the post below.
Start saving straight away
Most people think that they have to win the lottery, or play the stock market and make investments to be comfortably well off in their future. Now I’m not saying that investment can’t play its part, as you will discover below, but the real key is what you can save right now.
Yes, it’s the money that you can put away now that can make all the difference further down the line, and there is a specific formula to it as well. The method that I’m talking about here is the one that suggests you have to save at least 50% of what your current income is to enable you to accrue enough wealth for a comfortable future.
Now, this may seem like a heck of a lot of money, and it is in relative terms. In fact, for most people, it will mean be a great deal more frugal that they currently have been. However, such a saving rate can guarantee that you can achieve financial independence after about 15 years, depending on what you earn. Imagine that, being financially independent 15 years from now, and all it takes is to cut down what you spend and redirect it into saving instead.
Of course, if you can afford to invest as well, you can make things even easier on yourself. After all the typical long-term investment in the stock market is set to make around a 7-9% return. An amount that is far higher than any interest rate you will get back on your money at the bank.
However, you will need to navigate the sometimes confusing waters of investments to be able to earn this much. This will entail learning the terminology, as well as the difference between the various markets, include cryptocurrency and Forex as well as stocks and bonds.
You will also have to look into the possible risks associated with the best option you chose because many do not have a guaranteed return at all. This that means you could end up losing you money. Something that will obviously have a massive impact on how comfortable your financial future is.
Decide what your future financial goals are
Next, when it comes to being comfortably well off in the future is essential to bear in mind that everyone’s need and expectations will differ. You may want to travel the world with your spouse, you may wish to pursue a long-standing dream or hobby, you may even want to help out other members of your family financially. Obviously, your financial needs will vary accordingly, and so there is no one size fits all option that is viable here.
With that in mind, it can be hugely helpful to consult with professional retirement advisors like those at Miramontes Capital for guidance. In fact, it can be vital to the success of financially preparing for the future because without having a clear idea of what you are aiming for it, it is almost impossible to make an effective plan.
Related: Jeff Gitterman on Setting Goals
Say bye bye to debt
Debt is another issue that could be endangering your chance of being well off in the future. In particular, be wary of debts that have the highest interest such as credit cards and same day loans, because it’s incredibly difficult to pay off the entire balance. In fact, most people only end up paying off the amount that the interest adds to the account each month, which means the debt just remain the same, never getting any smaller.
Of course, the thing to think about here is that any debt that you plan to be still paying off in your future will take away money from you available everyday budget. Something that if you want to be as comfortable as possible and do all the thing you have in mind, you won’t want.
To that end, it makes a lot of sense to pay off your debts as a matter of priority, even before you start saving and investing, as this can mean you are better off in the long term.
Keep a handle on your finances
Lastly, if you want to have a comfortable financial future, it is going to mean putting in the effort now. In particular, you will need to get a handle on your finances and your spending, something that we should all be doing anyway, but often don’t!
What this means is doing two main things. The first is to monitor your incoming and outgoings strictly and always ensure you know what is leaving your account. Then, after a while of doing this, you should have a much better understanding of your financial needs, and can, therefore, start cutting back on things that are unnecessary.
Secondly, it can be useful to examine the way in which you approach your spending. After all, many of us, especially in western society, are lucky enough to have most of our need met, most of the time. What that means is we are spending a great deal of our hard-won income on things that don’t actually make a massive difference to our overall well being.
Of course, this is the trap of consumerism, and it can create all sort of problems for those that buy into it lock stock and barrel. Happily, there is a growing movement away from purchasing products as a way to define your identify and manage your mood. Something you can read more about here, and that would very likely have a significant impact on whether you can achieve a comfortable financial position in the future or not.