We are all encouraged to live in the here and now and make the most of each day. We know that really no one knows just how long they have on this world and it is imperative to enjoy the moments you do have with your friends and family. We know money doesn’t necessarily make you happy, but it can make life that be easier. Being young means that you are strong and can handle tough situations whatever life throws at you such as losing your job or making a few financial mistakes here and there, but as you get old your life really becomes that bit more fragile, and you need some sort of security to ensure that you can carry on with the lifestyle you have grown accustomed to. Such as keeping your family home, paying out for holidays so you can really tick off those bucket list destinations and just generally enjoy the time you have in your retirement. So how can you ensure you are going to be okay financially? There are no guarantees, but there are things you can do now that can help you on your way to financial freedom in the future and here are some of the things that you can think about doing.
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Getting on the property ladder
One of the first things you need to think about is your home. Right now you may be happy renting somewhere cool and sophisticated in the city, or you may have already made plans to buy your own home. But it is important to take that step on the property ladder. Once you are on it, you can then continue to move up as your salary and savings allow. There may be reasons to move home such as a change in job or lifestyle. You may need a bigger place or you may want to enjoy a different part of town. Moving up helps you to increase the value and also equity you have in your home. When you hit retirement you can then decide to either stay where you are or downsize, enabling you to take out some of the profits made over the years from your property moves. If you do decide to stay you can still consider things like equity release.
You could also look at investing in other countries, either just as investment for long term rental income or even as a holiday let option. There are many different properties in areas of the world that are thriving in terms of tourism industry. So this could be something to think about for the new year. There is a lot to help when it comes to property. Some people even choose to keep property as one of their main nest eggs for the future, and buy more than one and rent out to others over the course of ownership.
Making some investments
Investing in the future can also be something you may want to take seriously right now and there are so many ways that you can invest that you should think about. It might be that you want to start investing in stocks and shares, although this can be a risky move, so it may be worth doing plenty of research or seeking advice before doing so. It could be that you invest in businesses or maybe even invest in long term savings options to maximise the rates that you can get. There are options to help your money work that bit harder for you.
Saving little and often
Would you believe that saving little and often is one of the best options that you can do. The best idea would be to work out something you can do without each week or day. It might be your take out coffee and choosing to make one at home instead. That weekly pizza or takeaway or even the odd night out here and there. Working out how much that would cost you and instead putting the money across to save is a great way to not miss the money but save often. You could also think about things like rounding off your bank account each day. Rounding to the nearest ten and then transferring the difference, whatever that might be to your savings account. It may just be small amounts each day, but it tends to be amounts you won’t miss and it will add up over time.
Sometimes just taking a few different actions and making decisions now can really help to impact your future financially in a positive way.
