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Five steps to secure your financial wellbeing

How delayed gratification can lead to a better life.

You are most probably at a time when you need to make big life decisions like getting married, buying a house and/or a car.

But an even bigger life decision is how you choose to spend your money. Did you know that your journey towards securing financial wellbeing doesn’t only have to begin when you earn a fat pay cheque?

A positive management of your finances now, will determine your overall financial health in the future. So, start now and set the stage for a financially comfortable life later.

  1. Speak to a financial advisor to set up realistic financial goals

It will provide clarity on what you want to achieve, the best ways to achieve it and when it can be achieved. Advisors are professionals who can look at your spending habits dispassionately, and provide you with a clear-eyed assessment of where you are when it comes to making and reaching your financial goals.

  1. Set up a budget to track your spending

This is basically making sure that you are not only living within your means, but also have money set aside to achieve your goals. You also get to keep a record of where all your money goes to avoid surprises on your bank statements. Where the first step is setting out broad goals, budgeting provides the daily, weekly, and monthly process to reach them.

  1. Educate yourself on the difference between retirement and saving products
  2. Financial wellbeing is not something you plan for only once. Make a habit of learning about retirement and saving products, there are credible business and financial news sources that help expand your knowledge. Read so you can adapt your plan to your changing goals and find better ways to reach them.

  1. Look at investment products like EFTs, unit trusts, and index funds

When it comes to retirement and saving products, even the best of them tend to preserve wealth rather than grow it. Therefore, you should look at products like EFTs, unit trusts, and index funds if you are serious about wanting to grow your wealth. Each of them have their pros and cons, so this is why you should take your time to learn more about them, and which offering is best suited to your needs.

  1. Save for that treat. Savings and investments are ways to reach life goals

So, don’t be afraid to spend it. But be careful, this is not a licence to accumulate unnecessary expenses nor is it a ticket to misuse your hard-earned money. When it comes to all of the above, it’s easy to forget that when it comes to financial wellbeing, the main aim is overall wellbeing. Though this means not having to worry about having enough money to cover some kind of emergency, it also includes being able to spend on things and experiences that add value to your life like going away on a holiday, choosing to eat-out at your favourite restaurant or just simply getting a new pair of shoes. Looked at another way, financial wellbeing amounts to delaying your gratification in a way that is measurably and sustainably well within your budget.

Remember that it’s not about the amount of money you make, but your ability to use it wisely.

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