Sunday, December 11, 2016

Safeguarding Your Finances In The Age Of Instability

protect your money
It doesn’t seem like the right thing to say, but money is everything, That can’t be true, surely? We’ve been taught that there are things in the world that exist that are so much stronger than money. Love and friendship should rule the day. The sad truth is that you can’t buy a roof over your head, or a warm meal with love.

It depends on your priorities, and maybe love and friendship are genuinely worth so much more than money, but there’s absolutely no denying that money is important.

Money is important, because what having money means is that you are not destitute and on the streets. Having a small amount of money entitles you to a small amount of success. More amounts of money mean you are not dependent on your job and living from payday to payday. Having even more money means that you will be secure, no matter what happens.

Money allows you to have some degree of control over your life; you can travel the world and seek out opportunities with cash. You can get fit and join a gym thanks to money. You can drive and have a sense of relative independence with money.

Another reason why money is so important is because money allows you to give back. Think of charities and fundraisers. Money allows you to help others that are less fortunate.

So yes, while money may not be totally everything to most, having a sense of control, safety and independence are something that shouldn’t be taken for granted and money and wealth afford you that.

But how do you get to a point where you feel like that? Most people are living from paycheck to paycheck! If that’s the case, we need to look for more opportunities to make money. It’s hard, but we should try and save money so we can secure our futures. It’s the age of instability right now. There are more freelance roles than ever, and the ‘gig economy’ is in full swing meaning the chances of a secure and locked down job are decreasing in favor for short-term employee driven roles.

Saving is the key. You don’t need to be ultra frugal and start cutting your hair in your bath to save cash, but you’ll need to employ some common sense and reign in your spending.

For example, if you have two coffees a day brought from your local coffee store, maybe you can cut that down by half? If you have three beers on a night out, why not try having two from this point forward? It’s not about cutting out the fun in life, but focusing on it with quality over quantity. Chances are you’re going to chug through beers if you know they are coming. If you know, you’re allowed two coffees today, you won’t focus on the first because it’s not the only one you’re enjoying today.

Employ the practices of mindfulness to your spending and really drink in your purchases. Take your time and enjoy them for what they are, not how much you can get into you. So, if you’re saving a few dollars here and there by cutting out quantity, you need to immediately plant these savings, however small, into a savings account. If you don’t do this, you’ll allow your savings to build up, and it will only be willpower stopping you from an end of month splurge. Willpower isn’t a factor we want to bring into this discussion, and if you can automate your savings to put two or three dollars away a day to represent your savings, you’ll have done your job admirably.

Insurance is key to safeguarding your finances. If you’re a freelance worker, it’s likely that gadgets like your laptop, phone or mobile tablet are helping you complete your work on a daily basis. Even if you’re not a freelance worker, it’s probable that you cannot afford to replace your phone if it’s broken. On a larger scale, what about investment insurance? Can you afford to lose your savings? If you can’t afford to lose a phone, than losing your money made via investments or savings will be a nightmare you cannot afford. What about if you’re a business owner? You need the right solutions, and there are many insurance options on the market (like, for example). The bottom line is that insurance might just be your best friend in a time of trouble.

If you’re fortunate to have saved enough to invest, you can’t go wrong with property investment. Putting your cash into a physical presence enables you to hire or rent the site out to a tenant. What this means is that the mortgage and loan will be paid off by the rent paid to you by the tenants. Any excess is your profit. It’s as simple as that, and it’s worth a look at if you want to push your money further while keeping it secure.

Safeguarding your finances will involve a considerable amount of admin, and it’s always worth speaking to an accountant to make sure your business or personal cashflows are working for you.

The threat of scams and hacking is ever-present, no matter your income. Ensure that your information is kept secure and that anti-viral software are used on your laptops. Make sure that any financial information isn’t stored on the cloud or noted down. This information is always for your eyes only and shouldn’t be given out. Look after your debit and credit cards and ensure that you take the time to pore over your transaction history to make sure it’s all above board.

Above all, the easiest step to safeguard your finance is to just apply a conservative mindset to your spending, whether it’s business or personal purchases. Reigning in your spending and putting your savings away is the best and easiest method to secure your financial future. It might seem hard at first, but after a while, it will become second nature, and you’ll never look back.

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