Not everyone will have the same template when it comes to financial goals. There are many challenges on your way to meeting these goals, and sometimes they are out of reach. To make sure you’re always in the best position to succeed, try starting from a better place than everyone else.
Falling into the debt trap has done a lot of people in. It is unrealistic to tell someone to never get in debt since anything can happen in life. Random life circumstances may deal you a bad hand, and you have to react. But that doesn’t mean it is okay to wallow in it- once you are in debt, make a plan to get out of debt and stick to it. There is no reason you should spend the rest of your life paying off debt instead of saving or investing your money.
We spend most of our lives working 40+ hour weeks without enjoying the better things in life. Early retirement gives you an opportunity to take control of your life years earlier than peers. You can retire early with minimal impact on your money. Starting early is key, so just like the debt tip, make a plan and stick to it. Even if you love your job, there will come a time where you just want to take care of yourself or family. With the right setup, you can retire early and finish watching your kids/grandkids grow up.
There are multiple ways to supplement income, so you should take advantage of them all. Having only one income stream puts you in a bad position if the tap runs dry. Layoffs happen, people get fired and life is just a general pain. Don’t put your entire future in danger by depending on a single income stream to fulfill your ambitions. It takes very little to branch out and make money on the side, and you can do so without interrupting your day to day work life. The only limiting thing is time, so use it wisely.
Going years without needing to use insurance will make you complacent. Just because you never have to use insurance doesn’t mean you should drop it, or lower the policy features. If something happens to your car and it gets totaled, insurance will make the difference between you painlessly getting new wheels or spending months making phone calls. Not being able to get to work from lack of transportation is not a valid excuse. Insurance is ‘just in case’, and in this case you will always need it.
You should never live a lifestyle that leaves you with only a few dollars in the bank after getting paid. Look at the big-ticket items in your life and ask yourself if it is worth the expense. Freeing up a couple of hundred a month will go a long way in gaining you investments, savings, stocks and even money to get out of debt. Squeaking by on each paycheck is not recommended, and should lead to an immediate change.
Think about where you want your finances to be in five, ten, twenty years and beyond. Look at your current situation and see if it is a possibility. The changes you make in the present will decide whether your financial goals are met, or hit a giant brick wall. Make your choice early and reap the spoils of your victory later in life.