11 Safe Money Strategies
When it comes to building wealth and achieving financial security, you have to think like a long distance runner lining up for a marathon.
No matter where you are on your financial journey — planning for the end is important. These 11 safe money strategies below are your guide to getting through to the finish line successfully.
Live below your means
We all want to live a life of grandeur — and for some of us we can and are. But not all visions of grandeur include custom detailed cars, vacations on a private jet, and owning a yacht.
Living a good life does and should look different for every person. What I want to discuss with you is what does and should life look like for you? And doing so in such a way that it takes in your needs, wants, and circumstance into consideration. Making sure you are spending less than what you earn allows you to avoid lifestyle inflation as your income increases. It allows you to save money, pay off debt, and invest in the future while still being able to live.
And it doesn’t matter how much you make or what income you have. This rule is income agnostic and applies to everyone.
Living below your means is the foundation to achieving financial success and building long-term wealth.Build an emergency fund
There are a few things that are certain in this life — the main one being that you can’t predict how it will all unfold. Not having an emergency fund leaves you vulnerable to life happening — be it the unforeseen passing of a loved one, a layoff, or a really hefty medical bill.
An emergency fund is your ticket to lowering your anxiety about the unknown and protecting yourself from potential debt. Debt that will take that initial big expense and make it even bigger.Pay off high interest debt
We all know that having a credit card isn’t the equivalent of having real life Monopoly money — yet sometimes we act like we forgot. High interest debt, such as credit card debt, is one of the biggest financial burdens most people endure because it’s easiest the easiest to obtain.
Out of all of your different streams of debt, make sure to see which ones have the highest interest rate and pay them off first — while still maintaining payments on your other debts. The higher the interest rate = the longer you wait to pay it off = the more money you end up losing.
Start at the top and work your way down until you’re debt free.Invest in a retirement account
We’ve all dreamt what life could look like once we stop working. What you’ll do and where you’ll go is a mystery, but what we do know is that you’ll need money to make it happen. There are many different ways that you can invest your money that will help set you up for retirement — creating streams of income that will support you until the day you die.
From the traditional investments (401(k)’s and IRAs) to more non-traditional investments (annuities) — work with a Retirement Specialist to help you figure out what’s best for you.Diversify your investments
We’ve all heard the phrase, “don’t put all your eggs in one basket”, and there’s a reason. When it comes to investing, it’s important to diversify your investments because as the markets shift — so will your total investment. Spreading things out allows you to weather proof yourself a little better when a storm rolls in. #marketvolatility
Different investment assets include stocks, bonds, and real estate.Buy insurance
We buy insurance when it comes to owning a home or a car — insuring your investments is no different. It is an important part to any financial plan as it will help you protect your assets and income should the unexpected arise — such as a layoff or a lofty medical bill.
Plan for the best — prepare for the worst.Avoid scams
If there is one good thing about scammers is that in today’s day and age, we’re more attuned to the fact that they are there and know their tactics — or at least their most current tactics. When it comes to scams, the common thread between all of them is that it always comes down to money. Be weary of any random calls or messages about investment opportunities that don’t have a real person or face tied to the other end of it and/or anything that seems “too good to be true.”
Trust your gut and talk to a professional.Be patient
If there was a pill that we could take that would allow us to make heaps of money overnight — trust me, we’d take it. Unfortunately, investing takes time and a lot of patience. This is why it’s good to start investing as early as you can in life and stick to your long term plan — even if things seem volatile.
More time = more compounding = more wealthAvoid unnecessary fees
We’ve all gone to open up a credit card and looked at all of them to weigh out their benefits and perks — but have you looked at the fees associated with it? Fees, no matter how small or insignificant, can really eat away at your investment returns overtime.
Be sure to chose investments with low fees to avoid any unnecessary charges.Think about the unknowns
We’ve already discussed that there’s no way to know what’s going to happen but outside of what happens in your direct personal life, we have to take into consideration what’s happening at a federal level. The reality of a person who retired 50 years ago vs a person retiring today vs someone retiring 50 years from now is astounding. There is almost no comparison. Because federal regulations and laws change the amount of taxes and potential rules associated with your investment.
Choosing an investment that helps you to maximize tax benefits and sets you up for guaranteed retirement income for life is one way to navigate these mirky waters.Get professional help
You would hire a plumber to fix a leak, just as you would hire a firefighter to put out a burning building — retirement strategies are no different. There are so many things that go into creating a comprehensive and wholistic retirement strategy. A strategy that takes your needs as well as your wants into consideration.
Working with a retirement specialist is a proven way to make sure you can get the most out of your retirement so you can start living.
Hi — I’m Lori.I became a retirement specialist to help change the retirement narrative – freeing professionals to live a life of grandeur, thrills, and connection. A life that contrasts the life you live when you’re caught up at work. A life you’ve been dreaming about since day one. Work with me to create guaranteed income that keeps rolling in until the day you kick it.
