As you grow old you start to realize the real value of money and tend to focus and spend more on items that can provide future security in case of emergency; life insurance, emergency funds, and even stock market investments are few of the items we focus on. The daily routine of a 9 to 5 job starts to take its toll and you therefore create ways on how to better save up for the future.
I’ve been in your position of having to wake up every day thinking how I can grow my savings without having to starve myself. But then I realized that its not about how big your savings is, but how prepared you are for any kind of emergency. Here are some of the things you should consider investing on to have that extra peace of mind:
It took me a while before I gave in to purchasing a life insurance policy; I was always careful and observant, therefore I did not feel the need to have a security money. But what my agent made me realize is that accidents may happen even if you are careful every second. A life insurance is your safety net, you are investing on something that will give you the opportunity to lengthen your life and lessen the impact just in case an accident happens. It is better to start early than spend more in the end.
- Emergency funds
Even if you have insurance money, this does not mean you should not have ready cash. An emergency fund is your instant savior if a loved one badly needs money, or can be used as payment if you forgot to settle your bills. Separate a fixed amount from your monthly income to be dedicated for this purpose so that you won’t be tempted to spend it on impulse buying. Once the habit is established, it will be generally easier to be uptight on expenses.
- Extra funds
Extra funds can also be labeled as your reward fund- set a budget specifically for treating yourself via a shopping spree, fancy dinner, or even travel. If you are only starting with your savings, then it’s better to have a controlled budget for leisure to keep you from overspending. Saving does not mean having no fun, but being ready to have enough money even for fun.
- Investment funds
Once you hear the word ‘investment’ you’ll probably scroll down, but the thing is that investing is the best way to grow your savings. Do not be scared to buy stocks and learn about the finance world, there are agents willing to help you in this field. Just like great wine, investments that have been grown for longer periods of time will yield better results than those who wanted fast results. Instead of buying a new pair of jeans that you do not really need, make it a point to invest in the future and your future is sealed.
We all have different needs and preferences depending on our lifestyle and living conditions, so if this list is not applicable to you then don’t be afraid to create your own. Keep in mind though, that you should always focus on long-term planning than just merely spending for everyday consumption. Being financially stable is not defined as being rich, because it is defined as being someone who is capable of managing their finance and always has a backup plan.