Financial planning for your future
Living for the moment is all very well, but when it
comes to your financial security there’s no shame in looking ahead.
Make sure that you and your family don’t lose out by following these
four steps to a brighter future.
1. Don’t let
debt get on top of you: If one good thing has come out
of this present recession, it’s that both the public and the government
have realised how dangerous extensive personal debt can be. Most
British adults have some level of debt, but avoiding totting up high
interest loans and credit card spending is essential to your future
financial health. The interest payments on large debts, such as
mortgage payments and car loans, can be huge, detracting from the
amount you will be able to save. Go for low interest options and only
borrow in proportion to your financial circumstances.
2. Save as
standard: Saving money is basically a state of mind.
Just as a freelancer would deduct a proportion of their income to pay
in tax, so you should allocate a small amount of your income for
savings every month. Experts agree that saving 10% of your income
should give you a comfortable lifestyle post-retirement, as well as
catering for any emergencies. It’s never too early to start, so open
that high interest savings account now.
3. Make a
budget: The best financial aid is a good budget – one
which shows both your current earnings and expenditure and how much you
hope to save for the future. A budget like this will allow you to
estimate how much you need to put away every month. Be sure to account
for substantial financial hits, such as supporting your children
through university, as well as forecasting your own post-retirement
3. Take out life
insurance: Life insurance really is essential for
anybody with dependents. Not only will it provide your spouse and
children with financial support in the case of your unexpected death,
it can also cover unexpected monetary consequences such as inheritance
tax charges and continued mortgage payments. Life insurance providers
also offer funeral plans on their website, which will help protect your
family against the cost and grief of organising a funeral. Life
insurance isn’t a substitute for saving - but by both saving for and
insuring your future, you can be confident that you and your family
have all the financial security that you need.
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we do the best that we can, we never know what miracle is wrought in
or in the life of another. -- Helen Keller