6 Financial Decisions to Make Now
Financial Decisions
Money is a major requirement for nearly everything in the modern world. How you handle your money choices decides a lot of what your life will be like in both the short and long term.
Sometimes it’s the difference between being able to afford groceries that week or going out to eat, sometimes it’s the difference between being able to afford a home in the far future.
If the big picture, such as a new home, car, or location change, is too much to handle at one time, then it’s better to break it down into individual decisions that can lead to affording the bigger things in life.
Part of that is knowing a few major decisions to how you handle your money that will better set you up in life later.
Here are six financial decisions to make now that should be able to help you along later.
How You Will Earn Money
Nothing happens without income. If you’re past the entry-level phase of your career, you might have multiple career paths open to you.
However, you might be deep enough into a career to know that it’s not right for you and you should find another path to go down. In any case, try to find the work you have passion and talent for.
How Much You Will Spend
You might hear a lot that you should keep your spending down, and it is best to keep it well under your income.
Then again, you are alive now and it should be okay to enjoy things, trips, experiences, and times with friends and family if you can safely afford it.
Estate Planning
Something very important to consider is who will take care of your major decisions if you are somehow incapacitated? What about if you were to die?
Something to consider is what to do with your estate should you pass, how would it be divided up or who would it go to.
Many people, especially younger and healthier people, don’t think about whether they need to file wills, and as a result, whether through accident or illness, their families are left at the mercy of court systems when it comes time to deal with their estate.
How Much You Will Save
Once you have discretionary income, it’s best that you start to squirrel some of it away in your savings accounts. At first, it’s best to keep money saved in order to be prepared for emergencies.
Later on, it can be for investing as a way to further grow your wealth.
When It’s Okay to Borrow
Spending less than you earn and saving money are both crucial aspects of long-term financial success. However, there might be times when borrowing is okay.
A car or home usually needs financing but putting a trip to Vegas on a credit card might not be so hot.
Using student loans to finance higher education might look good, but it doesn’t always work out so well.
Protecting Your Assets
Once you’ve accumulated assets of any kind, from cash savings to a house to mutual funds, you need to make sure they are protected.
Sometimes, that means insurance. Other times, it might mean giving someone financial power of attorney.
There are many other financial decisions that you will have to make in life, especially depending on your situation in life or what you want to do with your money.
However, these six decisions can form the foundation of your broader financial picture. Planning on what to do with your money is an important financial strategy in order to keep on top of your finances, and as a result, your life and where you’re able to go with it.
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Category: Financial Planning
