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Everyone wants to be financially secure.
It’s a fact of life.
No one wants to have to worry about where their next paycheck is coming from. Or how they’re gonna put food on the table or keep the lights on.
That’s why it’s essential that you find ways to set yourself up for financial success as soon as possible.
No matter how old you are, you can start taking steps today to ensure your financial freedom and security.
Here’s what you can do.
1. Get Life Insurance
Life insurance is always an important asset to have in the event that something happens to you and/or your spouse. It’s a way to ensure that your family is taken care of well after you’re gone (and any debts you’ve left behind).
When considering life insurance, think about how much debt you have (mortgage, student loan, credit card, etc.) and how much your family would need to pay off all of your debts in your absence.
Once you know how much you need, start shopping around for quotes to see what you can afford.
2. Start Investing
You’ve probably heard dozens of times that investing is how many millionaires get rich, which is true in some cases. And while you might not get rich investing, it’s definitely a good way to help give you a boost when it comes to your financial goals (like saving for retirement or for your kids’ college education).
There are tons of different ways to invest your money. Educate yourself on the best methods for you based on your tolerance for risk. If you’re okay with risk for the sake of reward, you’ll be in good hands with stock investing. If you’d rather play it safe, the bond market might be more suitable for you.
There’s also different types of real estate investing you could consider to bring in a little extra money (but beware of the hidden costs of buying and selling property).
3. Make Sure You’re Saving for Retirement
Saving for retirement as early as possible is always recommended. But it’s never too late. You could always win a lump sump of cash and contributing that to your retirement account could help give you a needed boost if you started late in life.
Whenever you get extra money, put some into your retirement account. Make it a regular habit.
And if you’re steadily employed or you own a business, make retirement contributions automatic (have them taken right out of your paycheck) if you can.
4. Find Ways to Increase Your Income Every Year
If you’re working a job, try to ensure that you’re getting raises consistently.
If you want to outpace inflation and the cost of living, you’ll need to find ways to increase your income every year so that you’re not losing money.
Let your money sit in a savings account collecting pennies each year and that’s exactly what you’re doing – losing money.
Make sure you’re always keeping your eyes open for opportunities to earn more money. Even if it isn’t particularly something you like doing, if it gets you a step closer to your goals, then why not?
Pick up a side job or side hustle if you need to. There’s nothing wrong with doing a little Doordash while you grow your business. (No judgment here 😉).
5. Be Aware of Your Spending
We’d all love to spend endlessly as if we’re the Obamas and have no limit.
But we don’t all have Obama money (as my mom would say when I was a kid, but in reference to McDonald’s when we’d drive by).
So if you don’t have Obama money, don’t go spending like you just stepped out of an extra long black stretch limo with the Secret Service in tow.
Reel it in.
I had to check myself on my spending this year, so believe me, I know how painful it is. When you come from a family who loves to spend money like it’s water, you learn these things.
So keep your spending in check. Create a budget if you have to. I just did and it’s the best thing I’ve ever done. I can see my bank accounts increasing every month and I can literally see the progress I’m making toward my goals.
6. Create a Will
If you want your wealth to be passed down to your children or other relatives, you need to create a will. Consult with an estate planning attorney so you know exactly what steps you need to take to ensure that your estate passes into the proper hands after your passing.
A hand-written will won’t be legally binding as I previously thought. So you’ll need to type something up and bring it to an estate attorney to make sure everything looks good.
He or she will help you make any necessary changes and let you know when you’re good to go 👍.
7. Plan for Inheritance Tax
Inheritance tax? What’s that and why have I never heard of it?
Same thoughts I had, but let’s clear things up a little.
Inheritance tax is a tax you pay six months after someone passes away. I know, you might be thinking, well, if I don’t own any property, then I don’t have to pay inheritance tax, right?
Inheritance tax doesn’t only apply to property. In fact, it applies to everything in the estate, which means cash, savings, shares of stock, etc.
So make sure you have some money tucked away for this expense that they don’t even tell us about in school (or like, anywhere else). Or make sure your life insurance policy is big enough to cover this tax.
8. Get Business Insurance
If you’re a business owner, it’s important to protect your business as well as your personal finances. That’s why getting business insurance is a smart move for anyone that owns a business.
Even if you own a small business, business insurance is worth considering because you never know what might happen and it’s always better to plan for the worst and hope for the best.
So think about getting business insurance if you can. But it’s always better to get it sooner rather than later.
Related: How to Start Your Own Business
Start Taking Control of Your Financial Future
Ready to finally take control of your financial future and achieve the financial freedom that’s rightfully yours? Start by following the steps above and consulting with a financial advisor or wealth advisor so you can be sure you’re always on the right track to reach your financial goals.
What steps have you taken to start taking control of your financial future? Let me know in the comments and share if you found this post helpful 😊.