A Firstline Securities Limited Blog by: Casey Taylor
No matter who you are, where you’re from or even your age…we all can stand to learn (or gain a much-needed refresher) on the value of saving and investing for a fruitful financial future. The genesis of this stems from firstly becoming as educated as you can on money and exactly how it can work for you!
Additionally though, I’ve highlighted below six tools which should help anyone, anywhere, meet – and hopefully surpass – their planned financial goals:
1. Don’t use student loans as an excuse not to save or invest for your future. Thirty years from now, nothing will matter except what you did with the resources you had. You have more power and potential than you realize, but time goes by much faster than we think, so start becoming financially wise from now!
2. Even Small investing goes a long way. In the early stages of a career, you may feel constrained by your salary level or other financial responsibilities, such as mortgage repayments. Remember however that even $50 or $100 each month adds up over time if invested in the proper savings vehicles.
3. Educate yourself about the savings options available. Educating yourself about your investment options will alleviate any mistrust and encourage you to enter investments that you feel secure about. Don’t be afraid to ask questions…and to ask them frequently. After all it is your hard-earned money!
4. Spend Less than you make. You may think this is easier said than done right? We sometimes assume we can save for the future later. Living from pay cheque to pay cheque, using credit cards to cover emergencies, and expecting a future of higher income and lower expenses is a high-risk gamble that rarely pays off. Whether you’re a millionaire or an up-and-comer, you will eventually ‘go broke’ if you spend more than you make.
Self-control, and a financial plan early in life, are the easiest ways to build financial security. Regular saving, whether creating a liquid fund for emergencies, a home purchase, college education for children, or retirement are options worth considering.
5. Emergency Cash Fund. Murphy’s Law – if anything can go wrong, it will – this applies to financial matters as well. Emergencies happen, so it is best to prepare for them before they occur. The availability of easy credit reinforces a tendency to rely on debt to cover emergencies. However, hard times may diminish sources of credit and heighten the criteria required to borrow funds. In other words, borrowing to cover the cost of an emergency may not be an option. This causes individuals to liquidate their market assets at the worst possible time.
Financial experts recommend that maintaining liquid investments equal to at least three – six months’ salary after tax may be a good cushion in the event of sudden mass layoffs, illness, unemployment, and the case of retraining and/or relocation.
6. Keep Re-investing. Re-invest, re-invest, and re-invest again. When you make money on an investment, it’s important to re-invest so that it can keep its momentum and engagement going. I know it can be tempting to take whatever profits and “live it up” but it takes patience and commitment to reach, and even surpass, your goals.
If you require further information on any of the above, or wish to become more familiar with the sort of financial instruments on the market that can satisfy your needs feel free to contact us at firstname.lastname@example.org or
(1 868) 628 – 1175/1554.
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