Before you make big plans to spend, give up your job or gift it to loved ones, it is wise to assess your financial situation, write some goals for your future and review your options. Long term financial planning starts with a understanding of where you are with your money and ultimately where you want to be. Here are a few tips of making your money work best for you.
Make a plan of action
Often when people come into money a number of things can happen, this could include, spending it before you have it, giving it away or as Robert Kiyosaki would say “Spend it as though you are rich, resulting in you not being rich”.
The key before you spend is to make a plan.
Now is the time to picture your life in the future, maybe 5 10 or 15 years from now, where do you want to be? How far away are you from achieving that goal?
Things to consider are: - Where do you live? - What do you do? - How do you spend your time?
Maybe you are debt free? Living on a better income? Or travelling the world? Have a clear idea of your visions and write it down, keep this at the forefront of your mind before making any decisions and figure out what you need to achieve to get there.
Bulk up your emergency fund
Before investing any money, it is important to bulk up your rainy-day fund in an accessible savings account to cover emergencies or unexpected costs. If you are living on a monthly income where living to your means is the normality, it is wise to save three to six months of household expenses, should anything unexpectedly set you back.
Do not leave it all in the bank
With a rainy-day fund now safe in the bank, it’s time to start investing in your future by putting your money to work for you. Money in savings is not the best option long term, with rates as they currently stand your money is more likely to lose value overtime. Although there is always a level of risk when investing, working with experts who can support and guide you throughout your investment journey will not only help you make the right decision for you, but also reduce the chances of making common mistakes.
Buy an investment you can forget about
You can choose ready-made portfolios that invest in shares, bonds and other assets across a range of countries and regions – helping to dilute risk whilst improving the chances of investing in the right places.
Do not forget to get advice
Whatever you do invest in though, make sure you do your research first and do not invest in anything you do not understand. Plotting an investment strategy is not always easy or intuitive – particularly if you have never done it before. If you are thinking of investing a large sum of money advice is usually invaluable as the personal recommendations made are based on your circumstances and financial goals.
Key Land Capital PLC offer a free consultation and this meeting will enable you to judge whether investing is the right strategy for you.
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