When you imagine your life 5 years down the line, what do you see? What about 10 years? Now try 15. If looking that far ahead is difficult, buckle up. Financial planning requires you to take an even longer view, planning for what life will be like 30+ years from now.
It’s imperative to take an active approach to financial planning. And planning can be difficult, but there are certain hacks to make it more manageable.
This guide will walk through 5 tips to getting started today.
#1 It’s Never Too Early to Start
…and you should start as soon as possible.
If you’re not already saving for retirement, stop whatever else you’re doing. Right after you finish reading, start searching for an IRA or another tax-advantaged account that makes sense for you. Some of the best options include:
- Employer-provided plans, like a 401(K)
- Standard IRAs, funded with pre-tax dollars
- Roth IRAs, which avoid all taxes down the line
When it comes to planning for retirement, your income is only half the equation. The other half? How much you save. Every financial decision you make today can have a huge impact on what your future life will be like, directly influencing the financial well-being of your family and children.
#2 Staying Alive is Half the Battle Health is wealth.
One of the biggest expenses you need to plan for in retirement is healthcare. Between regular visits to the doctor and emergency treatments, living a long and high-quality life isn’t cheap.
One way to proactively counter those expenses? Keep yourself healthy.
Another key element of healthy living? Using natural remedies and supplements, such as CBD, to keep your emotions and energy in check. Keep your blood pressure and other vitals in control, and you’ll live a longer, happier life.
#3 Real Estate is Your Best Friend
What’s one of the smartest investments you can make? Real estate.
In the short term, real estate can provide quick income from flipping, or steady passive income through rentals. And over the long term, one of the best ways to build wealth is through equity in a home. Buy a house and the rest will take care of itself.
Plus, that equity can be turned into liquid cash though a sale or reverse mortgage.
An Oregon reverse mortgage can be extremely profitable due to the gorgeous natural environment. You’ve worked hard accruing equity, and you should rest assured that all your diligent savings won’t go to waste.
Use your home to get a huge loan!
#4 Start a Business So You Can Stop Working
Eventually, that is.
Starting up your own business, or setting an existing business up for growth, is one of the best ways to take control of your future. Your business doesn’t need to retire when you do, and having a stable source of income from your own company is a great way to retire early!
And starting a business is much easier than it may seem:
- Register at the state and federal levels
- Get your finances in order
- Secure any licensing you need
- Get business insurance
- Start providing goods and services!
If you have one or more skills you can monetize, there’s no reason not to start a business and see where it takes you.
#5: Budget Like Your Life Depends on It
…even when it doesn’t. It’s always wise to live below your means.
A big mistake people make, especially young people, is living at or above their means. For example, you might assume that when you get a raise at work, you can start spending all that extra money you’re making.
Is having the best coffee machine and the latest-and-greatest television really worth it?
Remember, saving is just as important as earning. A savvy planner will weigh the future cost of an extra dollar spent today. It’s fine to splurge here and there, but you should get as close as you can to a survival budget. Future you will thank you—trust us!
Start Planning for Retirement Today!
Following these 5 simple tips is the easiest way to start taking control of your future. With strong savings, health, real estate, a business, and a budget, anything is possible.
So, what are you waiting for? Get out there and make your dream financial future a reality!