Moves You Can Make in Your Life to Secure a Brighter Financial Future

February 18, 2015

It’s true that you should plan properly to manage your monthly income and expenses. However, financial planning goes way beyond these aspects—it’s very important in securing a brighter future. Here are some life moves, from paying your credit on time to getting the services of funeral directors in Melbourne, you can make to ensure you and your loved ones will always be secure money-wise.

  • Pay your credit card on time.

Carrying balances on your credit cards or other personal debts isn’t good for your financial future. So, create a systematic plan to pay them down, but don’t opt for offerings that might hurt your credit score. Remember that your borrowing history matters not only to credit card companies, but also to insurers and employers. You can avoid unpleasant insurance rate increases by wisely managing your credit.

  • Build an emergency fund.

By having an emergency fund, you can keep yourself from having to charge up your credit cards during times of need. Before you build up such a fund, make sure you establish a home equity line of credit. This can take the place of part of the emergency fund.

  • Buy a home if you can afford it.

If it doesn’t go way beyond your financial capacity, buy your own home, maintain it properly and build equity in it. Aside from having much more to show for your money spent than a mountain of rental receipts, this is also important to securing your financial future. Study shows that home ownership adds to improved quality of life and peace of mind.

  • Make a will.

With the help of a lawyer, make a current will that’s valid in your home state. Make sure that your spouse also has done the same, and both of you review each other’s documents. This ensures both of your wishes will be carried out, providing security and guardianship for your children, as well as education and maintenance trusts. If you have divorced and remarried, update your retirement account beneficiary designations to reflect your current situation.

  • Use funeral services.

Let’s face it: death is inevitable, so you should take some steps to save your loved ones from the hassle of finding money to pay for the expenses should the untoward happens. These include getting the services of funeral directors in Melbourne or wherever you are in the world to take care of everything for you.

Aside from the above-mentioned tips, you can also buy term-life insurance, get an employer-sponsored saving plan, leverage tax advantages, use broad market stock index funds and avoid over-weighting in any one’s security. In addition, don’t rely too much on social security.

For more advice and professional services related to finance, contact us here at Nelmo & Co.