Its funny how some subjects arise. This time the concept of fate has been rambling around in my brain. It came from an unrelated subject but was resounding for me in the last little while. This draws down to something shared with me privately by a client. She was afraid about her financial future. To the point, it was inhibiting her thinking and life planning.
How do I share that picture with you? Think of a horror movie from the 80’s. Imagine a young teenager is wandering through a dark house looking for her friend not sure if her demise is lurking around the corner? These movies freaked me out. It wasn’t the eerie music or characters who met an unfortunate fate. It’s not knowing what’s hiding in the shadows that makes me uneasy. The teenager is walking down a dark hallway with no knowledge of what her future will bring. She just keeps on walking, hoping for the best.
Guess what? This is not unique to the horror movies. For many people, that’s how they handle their financial future. They wander down dark, unfamiliar paths, and leave themselves vulnerable to unknown circumstances. The most precious commodity we all have is time. I agree with that. Money may not be the most important thing in the world but having a smart life plan will help you take care of yourself now and in the future, regardless of how scary it may be.
Here are three ways to make sure you’re secure while venturing down the dark paths of life.
Invest in your health
It’s no surprise that one of the most common symptoms of debt is stress. A recent study says one quarter of us are stressed about money most or all the time. People can’t sleep; they can’t eat. Eventually, the stress prevents them from functioning at work, at home, and in their daily lives. Persistent stress of this kind can also lead to serious physical and psychological problems.
A helpful way to take the mystery out of our finances is a budget. The simple act of tracking your money gives you knowledge, and knowledge is power. With this knowledge, you’ll be able to start the real work of re-allocating your money to whatever expenditures are most important to you. Watching your progress toward financial priorities not only relieves stress, it also brings great joy. We can’t make smart choices about how to spend our money if we lack an understanding of where it goes.
Create a personal economy.
In a society where anything can be purchased at the moment with credit, we thrive on instant gratification. But what about your long-term financial life goals? Where do you want to be financially one year from now? Ten years? If you want to shed some light on that dark hallway, you need to decide today where you hope to be tomorrow. You can choose to thrive in your own personal economy by implementing sound financial principles. Your personal economy is built on making smart spending choices, optimizing the earning potential of your money, investing in personal growth, and designing a plan that moves you toward financial life goals.
Secure your future
As a movie fan, we hope for a happy ending. Fortunately, we don’t have to rely on chance to secure a happy future for ourselves. The goods news is that Canadians are living longer. But that also means we need to prepare for that longevity to ensure financial security. With these longer lifespans, it’s important to create an income stream that you cannot outlive. One of his available tools is an annuity. Using annuities as part of your income strategy takes longevity risk off the table and can help eliminate other types of risk. CPP and pensions are great examples of lifetime income annuities.
Another important tool is life insurance. Securing life insurance today can protect against unforeseen hazards in the future. You want to be there for those who depend on you, but if you can’t, you will know that those you love will be protected with a smart life insurance plan. Talk with a financial life planner trusted expert to determine the best plan for your family.
Long-term investing is another option. No drama. Nothing leaking around the dark corner. Long-term investing is a simple, solid practice you should start now to reap the financial benefits later. In the long run, you’re going to see your portfolio grow in value, especially if you focus on high-quality businesses. Focusing on long-term stocks also allows for compound investing, which gives you the option to reinvest your profits over time to generate even greater profit potential.
The future is unknown, but that doesn’t mean your fate has has to be scary. By establishing a budget, defining a personal economy that moves you toward financial goals, and investing in a secure and optimistic future, your story can have a happy ending. This strategy is Keeping Life Current.