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Doesn’t it seem like the older you get, the more you realized you were not so smart in your youngers days? It sure does for me. Sometimes it feels as though I am a brand-new person. For the countless times when you’ve heard your parents or grandparents tell you that ‘you could be a bit wiser”, now you have an explanation. After high school, we enter the phase of college and its requirements. So many students think their lives are chaotic while pursuing a higher degree until they enter the professional working world. Then the game is taken to a whole new level when you settle down and get married and eventually have kids. Well, ok, maybe no kids yet for many millennials. Nonetheless, [try not to get offended by it] but it seems that so many of us simply do not think about the future and its practicalities in the present. In my twenties, I really didn’t care much about the future and I’m not alone. Did you know that 66% of millennials have not started saving for retirement? This is for a very obvious reason; compared to previous generations, it appears that the cost of living has significantly increased. The majority of us does not have much in the way of finances to play with now, so we may as well enjoy our lives. It is a scary thought considering that this generation has already lost about 10 years in retirement savings while the nation and the whole world was recovering from the economic downfall of 2008. For so many millennials, the thought of planning for the future doesn’t enter our minds, because it seems so far away. It really isn’t. Unfortunately, this isn’t the best attitude to have, because it will sneak up on us sooner than we think. So, even though you might have a full-time job, the perks may not be beneficial, so now is the best time to start thinking about planning for your twilight years in a financial sense…
Diversifying your sources of income
Things have changed. We can’t deny it. The traditional path of working one job for one employer for 40 years no longer works. I believe in finding ways to diversify your income. But, while it’s beneficial to have an extra income, a side hustle can take out more time than you physically have. Entrepreneur gives us some great ideas, but it’s down to you to weigh up whether you can physically manage this. I recommend looking for ventures that are stable, credible and which can lead to a residual income. Of course, if you’re desperate for money now, becoming a virtual assistant may help but, in my opinion, it cannot be sustained long-term.
A Proper Insurance Policy
Now, we’re really getting into the ‘old people’ stuff. You now have to hold the conversations your parents used to have that you totally walked away from. But trust me, a career in banking taught me that this is very important for the average person. Security isn’t just about having enough cash in the bank; it’s about ensuring you have the support in place. Due to unforeseen events, your ability to produce may be reduced. What happens if you are unable to support yourself and your family? It is easy to do a Google search and find answer to financial questions that you may have but here It’s beneficial to consult a professional with regards to planning for care in your old age. And if you have family, friends and acquaintances who are well into a phase of their lives where they need serious and credible advice, https://www.elderneedslaw.com/ is one such law firm that specializes in Medicare that can provide adequate support in relation to supported living. In addition to this, if you have dependents, it’s important to have your affairs put in place so they are provided for if something should suddenly happen to you.
The Gamble of Investing
While investments like the stock market are always going to be a gamble, the earlier you get on this train, the more you will learn about the whole process. Lots of people are reticent to embark on this because they cannot fathom the idea of losing. Keep in mind that your 401k is just another gamble. However, if you play it right, there are many ways to earn a lucrative side income. Some people are comfortable managing their investments themselves while others reach out to professionals.
It doesn’t have to be stressful to plan for your twilight years, but the sooner you do it the better. Of course, it can be argued that there is plenty of time to get this right. In actual fact, time flies by so quickly, that you don’t want to end up financially struggling during the most relaxing years of your life. Instead, start thinking about the best financial decisions right now.
***A book to consider***