They say that money can’t buy happiness, and indeed, material wealth shouldn’t be the only driving force in your life. That said, and for better or worse, everything starts and ends with money nowadays. Whether you have dreams of becoming a self-made #girlboss and a millionaire by the time you turn 35, or if your dream is to simply be financially stable and provide your family with a normal life unencumbered by financial difficulties, money does matter.
This is why you should think about your financial future, and why it’s so important to map out this journey in order to reach all the milestones that matter to you and lay the foundation for a happy, and healthy life with your family. Here are the five tips that will allow you to map out your financial future and achieve your goals.
Put all of your goals into perspective
First things first, you need to put everything into a realistic perspective instead of thinking that you’ll be able to tackle every challenge as it comes up. In reality, of course, achieving financial goals takes time, planning, as well as consistency and dedication, so you it’s important to start mapping out your goals as early as possible. What you will discover almost immediately is that you need to start saving now in order to achieve certain goals, and that you need to create a strong investment plan for the near and far future.
It might sound complicated, but all it really means is that early strategizing pays off. What’s more, it’s important that you list not only your long-term goals, but your short-term ones as well. This will help you observe your current situation more objectively, and most importantly, it will allow you to be honest with yourself and acknowledge what needs to be done to make your financial dreams come true.
Emphasize your retirement first
One of the most important financial goals that many of us who are part of a “younger” generation tend to put on the backburner (more like never really think about, but okay) is the goal of ensuring a comfortable retirement. Look, we get it, you’re career-driven, you’re ambitious, and heck, you probably have what it takes to establish financial independence, become your own boss, and maybe even become a millionaire if that’s your dream. But that doesn’t mean that you shouldn’t think about your retirement.
Never underestimate life’s ability to take you by surprise, alter your mindset, or force you to change your plans and rapidly transform your lifestyle. Who knows, maybe an illness will force you to retire even though you want to stay at the helm of your company forever. Or, maybe you suddenly realize that you want to chill and spend time with your loved ones while sipping on a Mojito on a beach halfway across the world – whatever it is, you need to start investing a comfortable retirement early on.
Invest in your family’s security
Speaking of life’s ability to throw you a curve ball when you least expect it, all aspiring business leaders and women who are seeking long-term financial independence should understand the importance of ensuring financial security for their families during difficult times. Should something happen to you, your family needs to stay afloat. It’s not a pretty subject to talk or think about, but that doesn’t mean that your family should suffer financial distress as a result.
It is your duty as a financially-savvy careerwoman to protect your family, and that means finding a high interest savings account that comes with life insurance that allows your beneficiaries to receive the needed financial support should your life meet an abrupt end. Hey, you’re a grown-up, you understand that life is unpredictable, so don’t fool yourself into thinking that you’re invincible, and don’t put your family at risk. Instead, make sure that they are covered against every eventuality, including this one.
Find ways to make smart long-term investments
The next step towards mapping out your financial future is to strategize about your business investments. The keyword you’re looking for is passive income, and that means investing in a stable asset that will yield long-term financial gain, while you sit back and enjoy the high life. This is easier said than done, of course, so you need to consider every investment opportunity carefully.
Make sure it’s a stable asset in order to minimize the risk of failure, such as real estate. When you buy a property, you can rent it to tenants and thus establish a continuous income stream, but you can also flip the property for a profit – allowing you to buy another property, and rinse and repeat. Whatever you choose to invest in, though, be sure to check with a professional investment advisor first.
Eliminate your debt
And finally, remember that to achieve all of your financial goals, you need to settle the score with your creditors. Eliminating your debt and improving your credit score are the two best ways to improve your borrowing potential, which will, in turn, allow you to gain more financial support to launch your business, invest in a better opportunity, and reach your financial goals in general. And besides, you don’t want your debt to fall on your family’s shoulders, so make a realistic repayment plan as early as possible.
Mapping out your financial future and making a battle plan are two cumbersome tasks, but that doesn’t mean that they are not rewarding. With these considerations in mind, you can create a strong financial strategy, and transform your dreams into feasible goals.