We all want to do well financially, yet it’s surprising how few of us have taken the time to think about what that will actually mean. This article is going to overview ten tips for getting clearer on how to flourish financially, from ditching the debt to planning for the future.
These are things we all think about, but sometimes don’t plan as much as we should. Let’s change it together!
This should be the first tip on any financial planner’s to-do list. Sit down and take stock of what’s coming in each month, and make a plan for where it needs to go and where it should go. This will involve thinking about spending, expenses, and current debt loads, all of which you’ll need to be aware of before undertaking financial flourishing.
Automate bills wherever possible, and always track them
Automating this process can make it considerably easier to avoid late payment fees, last minute stresses, or the temptations of impulse buying. So wherever possible, we encourage automating your bill payment. This can even include automating a portion of your paycheque to a savings account, so don’t think you’ll get out of paying yourself!
Ditch the debt
As much as I’m sure you already want out of debt, have you thought about how to really make that happen? Take the time to sit down with your partner and discuss how much debt there is, the interest rates involved, and hammer out a realistic plan together to ditch it to ensure your financial future.
Have sufficient and effective insurance coverage, in all areas of life
Make sure that your renters insurance, car insurance, life insurance, health insurance, and any other insurance you may need is up to date – and that you’re getting the best deal possible on it. You’d be surprised how paying a “little extra here” can add up over two or more insurance services!
Hope for the best, prepare for the worst
None of us like to think that something could happen to us, but the reality of it is that all of us are mortal. That means accidents do happen, unexpected illnesses do crop up. Is your estate ready if that happens? Part of ensuring that your financial flourishing continues, even for your heirs to come, is ensuring you’ve adequately planned for emergencies such as setting a power of attorney, making health care decisions, and writing a will. Remember, you’ve worked hard for your money, you should decide where it goes!
Be prepared for financial emergencies too!
Another reality we all have to face is that financial crises are a lot more likely than any of us hope for. What happens if you lose your job today? What about if the power turns off and doesn’t come back? What would happen if you and your family lost touch?
These are things you can take the time to sit and plan for now, to prevent panic later. Having a plan to give quick access to all your important documents, and some savings, can go a long way to ensuring peace of mind.
Set savings goals, for now and the future
Savings goals should be both short and long term. You may need a car today, but when you retire you’ll need to be able to live off of a pension. By planning your goals for both the short and the long term, you’re ensuring your financial success for years to come.
Set other goals too!
While you’re sitting and thinking about what you want from your financial future, take a minute and assess your other life goals as well. These can be for your personal relationships, your career, or even just life accomplishments, but having an idea of where you want to go will increase your chances of getting there.
Clear your clutter, clear your mind
Another great tip to financial success is one that may surprise you – decluttering your home. A cluttered home is indicative of a lack of organisation, and can be the sign of a cluttered mind. If you’re finding you’re struggling financially, you may be surprised to find that going through your home and getting rid of the no longer needed items may be just what you need. As a bonus, this encourages you to set up organisational systems to prevent the house from getting cluttered again!
Take care of yourself
This may sound obvious, but is easy to forget. Are you eating well? Are you exercising? What healthy habit do you need to be promoting in your life today? Is it time for a new hobby, or new friendships? Are you happy with your friends? Take the time to take care of yourself personally, as well as financially, to set yourself up for the future in a truly long term way.