Finding financial security doesn’t just happen overnight, no matter what some Hollywood movies might wrongfully make you believe. In fact, achieving real financial security is a process that, for some, may take most of their lives. So, the sooner you start investing in building a comfortable financial plan for the future, the sooner you’ll achieve it.

Feeling financially secure means more than having just the right amount of money to pay for all your expenses monthly and live a decent life. Financial security also means knowing that in case of an emergency, you are prepared and know that you can achieve all your life goals without allowing money problems to stop you.

Ready to find out how to build financial security for the future? Keep reading below!

1. Start with getting better at budgeting

First things first, if you want to get better at managing your money, you need to have a clear idea of where your money goes every month. Plus, if you don’t know where you are now, financially speaking, it’s difficult to have a clear path to follow going forward.

So, the very first step in getting control over your finances is to start tracking your earning and spending. By doing so, you’ll learn your spending habits and find the areas that you need to improve.

How do you create a budget? Well, it’s not that difficult to create and stick to a budget these days, especially since there are plenty of apps for that.
Download a budgeting app and use it to track your financial situation. Add your monthly net income and then separate your expenses into categories such as debt, utility bills, food, clothes, education, etc. Most budgeting apps allow you to split your costs into such categories and determine a certain amount of money you want to pay for each category.

What’s more, most of these apps also offer the ability to sync your bank accounts, allowing you to collect income and consumer spending data right into the app.

Budgeting tip: Have you ever heard of the 50/30/20 budgeting rule? If not, let us tell you what it means: you spend 50% of your income on your needs (living expenses, utility bills, debt, etc.), 30% of your income on your wants (clothes, trips, gadgets), and 20% of your income for savings.

2. Optimize your expenses

Once you have a clear idea of what your monthly budget, income, and expenses look like, it’s time to work on those areas that need improvement.

Are you spending too much money on things that aren’t really that necessary? Or maybe you’re not saving enough? Figure out the exact mistakes you make in your spending habits and fix them so that you don’t waste money on things you could live without. These mistakes might be holding you back from achieving your long-term goal of finding financial stability.

3. Set financial goals

Like it or not, “I want to be rich” isn’t a good enough financial goal. We all want to be rich, but you need to be a bit more specific with what “rich” means to you. What’s more, you need to have a clear idea of what steps you have on the way before you can consider yourself rich. Without defining your financial goals, you won’t know what you want to achieve and what path to follow.

Defining your financial goal is the fun part of achieving financial stability. The work that follows is the difficult part of this process. Yet, this part is particularly important as it will keep you motivated to attain financial security.

So, what do you want to achieve with your finances? Want to pay off debt? Want to be able to afford to buy your own home? Or maybe you want to save a nice amount of money for your retirement? No matter what you want your finances to look like in the future, make sure you have a clear idea of the goals you want to accomplish.

4. View savings deposits as bills

Saving on a regular basis can be really challenging, especially when you’re already struggling with paycheck to paycheck living. However, saving is a major step in building a secure financial future for yourself.

Your savings account can be your safety net in case something happens, and you need a huge amount of money overnight. What’s more, your savings can also help you grab an opportunity when it arises because you’ll afford it. Say, for example, that you stumble upon a great property deal. If you have enough money in your savings account, you can grab that opportunity immediately.

So, taking saving money really seriously. So seriously that you see monthly savings deposits as bills that you must pay every month.

5. Plan for the unplanned

Another important step in building a secure financial future for you and your family is to plan for the unplanned. As the experts from SmarterLoans explain, “Unfortunately, unplanned things like injuries, accidents, or even death can happen to all of us. And the best way to make sure such events don’t make you go bankrupt is to be financially prepared for them.”

Did you know that, statistically, we’re all one serious injury apart from going bankrupt? Well, that’s true, and if you want to have a secure financial future, you need to be prepared if anything happens. How to be prepared? Get yourself an injury and disability insurance.

What’s more, if you have a spouse and kids, particularly if you are the only breadwinner in the house, you should also get life insurance to financially protect your family in case you die unexpectedly.

Plus, if you own a home, you should also get homeowner’s insurance to protect your asset in case of a fire or a natural disaster that may wreak your property.

6. Increase your net worth

As obvious as it may sound, it’s worth mentioning because even if you may just not realize it right now, you may be able to increase your net income. Earning more money is and will always be the quickest and most straightforward way to achieve financial security.

How do you increase your net worth? There are various ways from getting a side hustle to starting your own business from your hobby, asking for a promotion, or simply changing your job for a better paid one. Another way to increase your net worth is by selling your life insurance for a cash payout through wwwharborlifesettlements.com, which can help support your family and pay for living expenses.

The post 6 Tips to Achieve Financial Security in 2023 appeared first on Along the Boards.

Almost anyone with a steady job and the ability to save money after paying bills can afford a home. The only difference is how much different people can afford. Here’s how to find out how expensive of a house you should look for- and how to make sure you stay within that comfortable budget.

How Much Do You Make

The first step is the most obvious one. How much money do you honestly make in a year? This planning means cash from your job and any and every source of income that you have. Is your income steady? Although freelancing can be extremely lucrative, working as a contract worker can make it harder to tell how much money you’ll be making in ten years. If that’s the case, it’s better to save money for a larger down payment for your mortgage.

Think about the ways you can increase your earnings and start creating a plan. Perhaps there is a way to utilize your time better and do more for a shorter period of time. Sometimes asking for a promotion can do wonders. If you have been working for the same company for years and constantly showed your loyalty, then you can ask to be properly compensated with a raise.

This can be a little harder for young people who have just started working, but it is not impossible. If you are competitive and valuable to the company you are working for and if the company is ready to recognize your potential, it will be your ticket to success. It is worth the try.

What Do You Spend Money On

Take the time to figure out how much you spend per month. This number should include everything from groceries, to how much money you put into entertainment every month. Although tightening down your budget will help in the short term, it’s harder and unfair to yourself to keep a strict budget for years. Be reasonable; think about what money gets leftover at the end of the month.

Make a list of needs and wants. If your money goes on the things that are not fully necessary, then you are basically losing the money you should utilize later on to buy a house. Think about the cheaper replacements for the expensive food or cosmetics you are using because that will add up in the long run. Buy only the food you are sure you will eat and don’t throw food. Consider limiting the number of meals in restaurants and turn to home cooking because not only it is healthier, but it will also do wonders for your budget. You will realize that you have bigger savings after a while and it will certainly be visible in all areas of your life. It is necessary to be completely objective about your expenses so you can make a realistic plan.

Looking To The Future

What do you think the worst financial month for you would be? Do you have a savings account with money in it? You must consider these things before making a budget. If there are life changes you know are coming your way, look at how they may affect you. Typical life milestones can throw off even the best-laid plans. From having kids to getting married, the best things can improve or worsen your financial situation.

Consider all of this, and make sure to put those thoughts into your budget. You’ll have to keep the same income- or better- for the next ten to thirty years. Make sure that’s possible for yourself.

If that is too scary for you, you should make plans for shorter periods until you become more comfortable with making long-term plans. Of course, life cannot be fully predicted and that shouldn’t be your goal, but having a goal in mind that you can look forward to will give you a sense of confidence and accomplishment. Since you will have a goal in mind, you won’t feel pressured to save money because someone told you to. You will have an inner motivation to do your best to save as much money as you can.

Shopping For Your Home

This step is where all of your budgeting comes together. Take how much you make now, how much you spend, and what you think your worst financial months would cost you. If you’re having a harder time figuring this out, you can also look into a house payment calculator to figure out what you can afford. You can find these calculators on websites such as redfin.com. Look into homes that are at or below your price range that fit your lifestyle. If you can’t find a good home within your budget that matches what you want, the best idea might be to wait for it so that you can get what you want and not settle.

Be patient. Buying a home is a huge decision and it shouldn’t be taken lightly. Pen and paper are your best friends in this situation. By putting everything on paper, you will have a clear idea about the steps that should be taken, so you can enjoy your home with your family. Think about your requirements, preferences, and wants concerning your future home and find the one that suits you the most.

Be realistic. This is particularly important about cutting down expenses. You cannot cut down expenses for medications, but there are ways that you can reduce other expenses that are simply not necessary. The first step is usually the most difficult one, but after that, it will become easier. Remember, it is possible to have a dream home, you just need to figure out a good plan to get it!

The post What Can You Afford to Spend On a House? appeared first on Along the Boards.