(Collaborative post) We all want to live happy, stress free, financially secure lives but for many of us it isn’t that simple. Being financially secure doesn’t necessarily mean we need to have an overloaded bank account. It simply means we can cover everyday expenses as well as have enough to cover emergencies should they arise. Many of us don’t pay enough attention to our finances. Who could blame us, it’s boring and for some extremely stress-inducing. Here we look at Tips to Help Us Become More Financially Secure because let’s face it many of us would love to be in a better position than we are now.
Tips to Help Us Become More Financially Secure
Planning Is The Key
Simply put, how can we plan well for our future if we don’t start until our later years. It helps to have some type of plan in place in our mid 20’s and reassess and adjust from there. If you don’t get started early then like many you will find yourself working through the time when others have retired and are enjoying their twilight years. There is no wrong time to work to become more financially secure. But of course, the earlier you start the better off you’ll be in the long run.
Decide On Your Budget
Budgeting is an effective way of controlling your spending and making full use of any surplus income you may have. If there is any that is!! What matters most is not your income, but your ability to cover outgoing expenses. It’s important to also set aside money for emergencies, treats, investments etc. Your budget can always be adjusted as your financial situation changes.
Sometimes you may feel like all you do is pay off bills. I know it’s frustrating but only you can get yourself out of this cycle. In order to do so, look into ways to boost your income. That could mean selling unwanted items, setting up your own small home business, even getting an additional part-time job. Also, look to reduce your personal expenditure, eliminate unnecessary expenses. Make sure that you don’t make things too restrictive and that you are not struggling or feeling like you are always saying no to things. This can negatively affect mental health and we all need some fun in our lives.
Having a regular budget review is especially important when your lifestyle changes. This may be due to a new relationship, having children, getting a raise, a new job, or moving house. When looking at your budget you are able to identify areas where you can make changes such as your mobile phone bill, utilities, or food shopping. You may have some subscriptions that you pay for that you don’t use often whether they are for magazines, movies, etc. It might be time to consider ditching a few and watching your bank balance grow.
Reduce Bad Debt
Your aim should be to reduce your bad debts as much as you can as soon as you can. Pay off the debt with the highest interest rate first and work from there. That way you instantly reduce your expenses and have more money to put towards other debts. The highest interest rates are normally on credit cards. In addition to purchasing items with credit, bad debts also include purchasing things that will not increase in value over time, and won’t yield a profit in the future, These include cars, household appliances, holidays, luxury items, entertainment, etc. The additional costs will affect your budget and in some cases unnecessarily. Some get into the habit of spending far more than their income allows ending up with high debts. Try to keep within your means to avoid getting yourself into more debt than you can cope with.
Managing Surplus Income
Surplus income is the amount left after removing your living expenses. Managing your surplus is imperative. If it is not managed carefully, you risk wasting this money. Save money with the intention of investing. Surplus income should be added into a separate savings account monthly. In time this will grow and will be there to use for good, well-researched investments which will boost your income in the long run and increase the amount you can spend on treats and luxuries.
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Save Automatically
Once you have enough money coming in to pay off bills, essentials, etc consider putting some into savings. Once you’ve calculated the figure set up an automatic monthly transfer into another account. You will in time get used to the amount not being included in your wages and with any luck won’t miss it. Where you can place this in a high interest account. These have limited access so make sure you only add in money you can afford to save and won’t need back quickly as some accounts will tie the money in for a few years.
Don’t Take Risks
In order to get the most out of your surplus income, you need to completely avoid taking risks. Once the excess money that you’ve saved has grown you’ll be able to invest. It is, therefore, critical that you make sure you are certain of what you are doing when making an investment. Many have purchased shares and have lost everything they have invested. The most reliable place to invest is in property. Of course, do your research into the area and the house you intend to buy as there are some money pits out there.
Consider Retirement From Early On
Once you have a workable budget, surplus income, and also invested some of your saved funds it then becomes time to consider retirement plans. This doesn’t mean stopping work early unless you can do so comfortably. This means setting aside money so you can live comfortably when you do decide to retire. The earlier you start the more you’ll have saved and the more you can enjoy your new, work free life. You may even find you can retire earlier than planned if you have a property generating a good monthly income.
Taking Steps To Protect Your Assets
It can be helpful to have the correct insurance policies to back you up if need be. Ensure you are properly covered so you’ll get the right financial assistance where required. This could be home insurance, landlord’s insurance, critical illness insurance, etc. This way your savings are protected and you won’t need to use them if an issue arises.
These tips will help us all in improving the financial position we are in and relieve some of the stress. The important thing is that we work towards improving our finances, budget and do everything in our power to help make ourselves more financially secure.
Sending Money Abroad
Some of us send money abroad to relatives to help them out financially if they are struggling. Whether you are sending money home to your family or to relatives that need assistance you need to ensure that the sums sent are within your budget. Make sure you do plenty of research as well as budgeting. If for example, if you are considering what’s the best way to send money to Colombia for example you will need to check costings, how long it takes for money to be sent etc. Factor in how long you plan to do this as it isn’t always easy to support others once you reach your twilight years.
Do you have any Tips to Help Us Become More Financially Secure that you might like to add? If not, which tip(s) do you feel are most important?
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Saving automatically has definitely been a big help for us. We have a few accounts that have automatic transfers, including savings accounts for our kids to build up for college one day.
It can make a big difference. it’s great that you are able to set aside extra money for your children too.
These are some wonderful tips, it can be so hard when you feel you are out of control moneywise and really put a lot of pressure on you. I’ve found automatic saving using an app really helps.
Auto savings can be a game changer. I’m glad you are saving your surplus income.
I’m trying to start to teach my kids some of these tips now, so they can have an easier time when they get older. It’s awful when young people get into bad debt so early.
It really is and it happens to so many.
You have some great ideas here. I do always try to save money. You never know what will happen down the line.
That’s the problem. If we think ahead and save it avoids having issues later on.
Trust me, I needed this post. All these things, managing surplus, not taking risk, bad debts walk hand in hand. But yes early planning, not only for retirements, but other things as well.
We need to learn to manage money early on so we don’t slip up and make unnecessary mistakes as some can be very costly x
This will truly help a lot of people learn to manage their finances. Thank you very much for this useful information.
Not a problem Jennifer. Thanks so much for visiting x
I really enjoyed reading this post, your tips are really helpful.
I hope you can use some yourself.
These are good points, including what to do with excess money. It is important to consider every aspect of finances.
It sure is. We need to look out for our futures.
We really need to start saving automatically. It’s so hard to do when we have so much debt though.
It can be hard to do. Try to save up to reduce the debt with the highest interest first.
I love all the tips. I’ll follow all these. Thanks for sharing!
I’m glad you found this useful Richelle.
All great tips, but don’t forget to invest, no matter how small. Start wherever you are and at whatever age you are if you don’t already have investments. Also, emergency savings of at least 6 months is key.
Emergency savings are important. Investing will help secure a better and more comfortable future.
Excellent tips. It indeed starts making your budget the best way you can, realistically, so you can honour what you plan. Thanks so much for your post.
The earlier you can start on this the better.
Great tips to consider when you are on a budget. This helps me a lot. Thanks for sharing these tips!
In the long run these tips will help you live a more comfortable adult life.
I never get tired of reading these kinds of Blog Posts that help me tremendously in managing my finances!
I’m glad you found it helpful. Hopefully you can incorporate any of these you many not be doing to make life easier later on x
Early retirement sounds like a dream! I’m going to take your tips on managing surplus income and combine it with saving automatically and make this dream come true.
That’s great to hear. I hope it goes well for you.
Great tips here to become financial secure, I do struggle with saving in accounts though as many years ago I worked in banking when the rates where high for savers. We are thinking of investing in art at some stage
Art is one quite a few try to invest in but don’t always get it quite right. If you know what you are doing you should do well with that.
We have just been discussing this here, we want to start putting regular money away for savings so we can have a pot for emergency funds and hopefully a holiday
That would be really helpful. Having savings means you’ve got back up if something happens and you need extra money.
We got into a bit of debt and actually took out an IVA to help us. Getting rid of our credit cards was the best thing we did.
Honestly, credit cards can get you into a lot of trouble although you need them to grow a good credit score. It’s important to pay them off asap.
I am concentrating this year on saving. I am trying to learn how to save and to increase my income!
Good luck Catalina. I hope it goes well for you.
Nice article, a lot of useful info!
This post is so helpful and informative. I think we can all use a bit of advice when it comes to saving and to become debt free. I know that a budget has really helped my family look at the numbers. It has a way of making us aware of how far we can make our money go.
It helps to be aware of how much we need for bills, food, emergency funds etc.
All really great points. I think evaluating where you are and then your income vs your expenditure is so important as you can try and cut out waste or things you’re spending without realising x
It is important to identify where money is being wasted and cutting this out.
We all want financial security especially if we have a family to feed. I like your tips because they are actionable, easy to understand, and practical.
Thanks Ivan. I do aim to make sure they are tips people can follow easily.
Yes! I’m following these tips too. Being more mindful of debt and my current budget are the biggest factors in my financial success for the future!
That’s great to hear Rikki. Don’t forget to reassess every so often.
This is such an important topic. I’m always very careful with money and hate spending it unless I really need to. I think these tips are wonderful.
Thanks Kathy. So many waste money without realising. Hopefully this will make people look at their spending.
Great tips, I would say one that I need to work on is save automatically. It’s always good to save and I’m still working on it.
Can be helpful to have money saved up for emergencies, treats, investments etc.
I agree with your tips, and I think the rule of thumb here is to NOT overspending. I think your insights will help a lot of people too. 🙂
Cutting overspending is key. So many pay for items they don’t need.
This is the dream. We are about 2 years away from being debt free – it is HARD but will be worth it.
Oh wow, that’s amazing. I hope it all works out.
Amazing tips! Getting rid of bad debt will help a lot!
It sure does. The sooner the better.
These are great tips. Financial security is a must for anyone but especially if you have a family like I do!
It is very important. So many people end up in more debt than they need to be.
I’m really lost at managing my surplus. You’re right, budgeting is the key. I wish I could manage my money better. Thanks for the tips.
Budgeting is really important and makes a big difference.
super valuable post to me. I always wish to be freer with the finances and it’s never easy for me. I appreciate any tip out there!
I’m so pleased you found the post helpful.
These are some great financial tips!
Thanks Shelby.
Every year I start a new cleanse of my finances and make sure I am spending correctly!
Saving automatically is key for us for sure! But I think people need to stop thinking about it as trying to save their “surplus” and rather think of it as HAVING TO PAY THEIR INVESTMENT BILL! Cause often if we have a surplus we use it for fun or randomly but if we HAVE to pay our Investment Bill each month, we dont see it as a surplus and thus our savings grows without the internal struggle.
Investments are very important and will help us in the long run.
Great tips indeed and they are all important to be financially secure . One of the tips I learned early on for investing is not to put all eggs in one basket and it has helped in the long run.
These are wonderful pieces of advice! Managing monthly expenses is such a huge one, to stop accumulating debt.
Managing our money is important. The faster we can pay off our debts the less stress and also the better we can allow for a better future.
A budget has been very helpful in our journey. It can be a little tricky at first, but once you get the hang of it… it gets easier.
Thank you for sharing your tips and I agree with you with these tips! I also add in having an insurance and investing on stocks!
I totally believe that starting retirement planning early is a very important aspect of good financial planning. Also, diversifying the investments for safety.
It’s so important to think long-term and not just about the day-to-day with finances. These are great tips!