Securing the financial future of you and your family will ensure the wellbeing of generations to come. With these proven tips, learn how you and your family can achieve financial independence.
- Start a forced savings plan
If you’ve struggled with the concept of putting aside funds, a forced savings plan may be just the ticket. A forced savings plan deducts a portion of your salary every month and deposits it into a separate savings account.
As an added incentive, forced savings funds pay a compound interest rate on the money you’ve put aside. Thus, this allows you to build up your savings as you earn a passive income from the interest payments.
However, care needs to be taken as you’ll be unable to access these funds in an emergency without incurring a heavy penalty.
- Take on freelance work
In today’s world, it’s highly unlikely that you’ll be able to achieve financial freedom on just a salary. Relying on a single source of income puts you and your family at significant risk. Also, with the rising cost of living, chances are you won’t be able to retire comfortably on your savings.
Hence, one of the best ways to easiest ways to help secure your family’s financial future, is by taking on freelance work. With sites like Upwork.com and Freelancer.com, picking up freelance work is a cinch. From copywriting and design to accounting, anyone with an internet connection and some creativity can be a freelancer.
As most freelance work allows you to set your own hours and work remotely, you’ll be able to earn some extra cash in your free time. Should you lose your full-time job, the earnings from your freelance work will help you support your family and keep you afloat. If you discover that you have a knack for such work, you could even go full-time.
- Get insured
Whilst saving and accumulating assets for your family’s financial future is well and good, you should never overlook protecting what you currently have. Being the breadwinner in your family, you’ll need to have contingencies in place to provide for your family in the event of your passing.
Purchasing a life insurance policy is crucial if you are looking to safeguard your family’s financial future. A life insurance policy guarantees that your family will receive a substantial payment known as a death benefit in the event of your passing. Thus, ensuring that their needs are taken care of.
Along with this, life insurance policies also offer disability coverage. Disability payments are paid out in an annuity or lump sum in the event that you become disabled and are not able to work. If you have a disability, use an online VA Calculator to estimate how much you might be entitled to. This will help you to plan your finances more easily month to month.
- Build up an investment portfolio
Instead of parking your money in the bank, why not let your cash work for you? By placing your cash into an investment portfolio, you’ll be able to hedge the value of your money while multiplying your income streams.
An investment portfolio is a basket of assets which consists of stocks, bonds, foreign currencies and other financial assets. The assets found in an investment portfolio are a reflection of the investor’s risk appetite. With an investment portfolio, you’ll be able to put aside funds for your retirement or build an inheritance for your kids.
High-risk investment portfolios deliver higher rates of return at the expense of risk and typically consist of junk bonds and volatile currencies. Lower-risk portfolios have lower rates of return but are much less volatile; they typically contain various blue-chip stocks and government treasury bills.
Before you build your portfolio, seek out the services of an investment advisor. He/she will then gauge your risk appetite and help you build up a suitable investment portfolio.
In an uncertain world, extra steps need to be taken to safeguard that you are not gambling with your family’s financial future.
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