Planning for the week ahead can be a challenge. Planning for the next decade? Forget it!
When it comes to finances, it pays to think of the long game. The financial decisions you make now could have a significant impact on your future. Make the right choices and you could find yourself in a much more comfortable financial situation further down the line.
Here are 7 financial decisions that will benefit you in 10 years.
If you want to save up a pot of money for a future event – a house deposit, wedding or a child’s university education – you’re more likely to get better interest rates if you commit to putting your money away for an extended period. Accounts, where you can freely dip into your savings, don’t offer quite the same perks. Be savvy with your savings and shop around for the best interest rates to find the ideal savings account for you.
The interest you pay on your credit card balance will eat into your income evermore if you don’t get it under control. Paying off your credit cards should be a top priority.
Having a clear idea of your monthly finances helps you feel in control of what you’re spending and saving. If you haven’t created a monthly budget before, it can be surprising to see just where your money is going. Take a thorough look at your bank statements. When you understand how much you’re spending, you can identify areas where savings can be made. Even a little a month could make a big difference over a decade.
Trading doesn’t have to be your full-time occupation to be lucrative. With online trading and even trading apps available, you can trade anytime, any place, fitting it into your usual daily schedule. Start off small and slowly build your portfolio as you come to understand and master the trading world.
If your car breaks down or you need to take some time off work due to illness, do you have the funds to cover any extra expenses? Finding a couple of thousand in any given month is likely to put your finances under tremendous pressure. Start building an emergency fund today. That way you know you have some security whatever life throws at you.
Overpaying on your mortgage, even by just $10 a month, can make a big difference to the overall amount you pay. Check out an online calculator to see just how much.
Everywhere we look, we’re being encouraged to spend. When we see something we like, it’s tempting to spend impulsively. We want it now, not later. Buying on credit – be it a car, a sofa or just a few new items for your wardrobe – is a very costly way to purchase things. Unless you’re 100% confident paying off your loan before the interest-free period is up, save up the money before you buy something. You’ll save a lot of money in interest in the long run too.
Don’t bury your head in the sand when it comes to your financial future. The decisions you make today could make a huge and positive difference in 10 years’ time. Look at ways you can cut your interest, make savings and spend shrewdly to boost your future bank balance.
Alana Downer is an experienced blogger whose main interest lies in finances and new technologies. Currently writing for Learn to Trade, Alana might often be found online, sharing her insights into technology trends which shape the way both businesses and individuals function.