Managing Money Matters

If you’re of a certain age, you’ll remember the saying “safe as houses”.  It was used to infer that an investment or decision about something really important was fool-proof and could be trusted beyond measure.

Its roots lay in the idea that property was a sure thing and that all you needed to create wealth and a legacy were property investments and for a long time, that assumption was by and large correct…ahhhh yes, the glory days that were pre-2008.

No doubt about it, for those who dream of a life of financial independence there are some smart money moves that you must be making and over and above these, here’s some good advice on how to plan for your financial future.

Your general financial well-being depends on a few external factors that combine to determine your overall financial health.  Things like the status of your investments (if any), retirement planning, insurance planning (including medical insurance) as well as “specialized” insurance to help guard against life events like disability or loss of income plans, all need thorough consideration.

So let’s break it down.  Now, remember that at different stages of your life – you’re going to need different financial plans as your priorities and individual circumstances change, so it’s always a good idea to get a financial planner to run the numbers.

Investment Planning

Advances in technology and the rise of the “app empire” has brought investing in stocks and markets into the palm of the hands of the “average Joe” – but this doesn’t mean it’s without its potential pitfalls, so if you’re not numerically inclined it is still very worth it to seek the advice of a professional.

Retirement Planning

It’s never too early to start planning for your retirement and this is a fact often overlooked by young people, however sooner or later you’re going to have to start. Even small monthly contributions early on in your career amount to big gains later on.  There are loads of options that can be tailored to your circumstances.  Even though it’s best to start early, a good time to start is right now.

Insurance Planning

As far as “grudge purchases” go, insurance planning fits that bill perfectly.  No one grows up thinking “I can’t wait to get homeowners insurance” but the reality is this, without it, you could be out of pocket to the tune of thousands of dollars and if you don’t fall into the 1%, chances are you don’t have that sort of money readily available.  This extends far beyond just short-term insurance and you need to think about life events like disability or income protection cover and as you get older, long-term care insurance could become part of your reality.

Medical Insurance

Every American’s worst nightmare and it’s a problem that is getting worse. It’s no secret that healthcare in the United States is in a mess but not having insurance could lead to literal financial ruin.  With a one day stay in an ICU bed costing upwards of $10 000 for a 24-hour stay..well, you get the picture.

Personal finance is seldom pretty and no one enjoys taking a dose of reality with breakfast but putting it off could have disastrous consequences.  The trick is balancing all of your financial plans with what you can afford currently even if it doesn’t seem like a lot, it’s better than nothing.