Most of the people who have money in the bank and investments for retirement started small, just like you. They understand that financial empowerment isn’t necessarily about how much money you make, it’s about how you handle the money you have.
It’s understandable if you feel stressed about your finances. It can be challenging to set a budget for monthly bills when the costs of living continue to go up, not only for rent or mortgage but even groceries and petrol. The daily (or monthly) stress of dealing with your finances may be preventing you from thinking about your financial future if you feel stuck in your current situation.
Prioritising your budget and starting the journey of financial empowerment allows you to steer the direction of your financial future and make better decisions to manage your finances and allocate your money more effectively. Once you develop a few positive habits you instantly start to increase your financial literacy and transform your mindset into building wealth, allowing you to set short-term and long-term goals you are motivated to keep.
Short-term financial goals might be:
- Saving for a family vacation
- Starting an investment portfolio
- Building an emergency fund
Long-term financial goals you can set might be:
- Saving to send your kids to university
- Starting a business
- Building a nest egg for retirement
With the right mindset, you can get unstuck from bad spending habits and become more intentional with how you manage your money. It won’t take long to see the results of your work which will help you stay on track towards building wealth and security for yourself and your family.
5 financial decisions you can make today to secure your family’s future
There are plenty of ways to provide financial security for your family’s future. We’ve provided a shortlist of five of our favourite investment and money handling decisions that can bring big results. The right way forward will be different for everyone but these are great places to start a conversation, crunch some numbers and see what the benefits will be for you in five, ten or even twenty years’ time.
1. Inflation-proof your money with gold
Gold has historically proven resilient in the face of economic downturns and geopolitical conflicts. This has given gold a reputation for being a safe-haven asset and an effective hedge against inflation. Most savvy investors buy gold to diversify their portfolio and reduce the risk that comes with stocks and bonds which can be vulnerable in times of inflation and market crashes.
With the current economic conditions, it’s important to find ways to inflation-proof your money. Increased costs of living can lower the value of money and impact your purchasing power. Investing in resilient commodities relatively unaffected by inflation will allow you to tap into an alternative income source. Gold investments can also earn a yield, which can increase the value of your investment over time.
You don’t need to worry about storing or securing physical gold either. Previously, investors held back from investing in gold because of its inflexibility, but the launch of fintech platforms has made it much easier to invest in gold. You can easily conduct online transactions with digital gold through secure channels with fintech apps. Select service providers also offer gold-backed debit cards, which can allow you to quickly liquidate your assets and use gold for daily expenses and transactions.
2. Get the right insurance products
There are many reasons to invest in life insurance; it can give you peace of mind that your family will have financial coverage in case of unexpected circumstances. Even as a single person, you can use your life insurance to cover the costs of your debts and medical funeral bills so that you don’t leave behind unpaid expenses for your loved ones to cover.
Different types of insurance products and policies can also support you and your family in achieving your long-term financial goals, such as going to university, purchasing a house or starting a business. It can give you future security and set the foundation for your retirement savings so that you have enough money for your pension plans.
Discussing your life insurance policy with a financial planner can give you a clearer idea of which options are best for your financial situation and goals.
3. Seek advice from trusted financial advisors and investment partners
Part of being financially empowered is seeking guidance and support from experts who can ensure that you’re on the right track with your finances. While it’s important to learn how to manage your finances yourself, there are signs that you need a financial advisor, including when you:
- Have no clear financial plan
- Are constantly having to Google things
- Have no idea where you stand because your finances are so disorganised
- Are on the cusp of making life-changing decisions
A financial advisor can give you a clear overview of your finances and help you develop a comprehensive financial plan that ensures you achieve your long-term goals for yourself and your family.
4. Pay off debts
Paying off your debts allows you to achieve better credit scores while reducing the amount you spend on interest and lending fees. Regularly paying off your debts can also help you become more conscious about your spending and money-handling habits, so that you can develop a healthier mindset on your finances instead of feeling like your credit card owns you.
You can start paying off small debts gradually but consistently until you reach bigger repayments such as long-term loans. Setting an amount to pay off each month can help you stay on track and avoid spending on unnecessary expenses with credit so that you gradually ease out of the debt cycle.
5. Teach your children about money
One of the best ways to secure your family’s financial future is by educating your children about healthy money choices at an early age. Money is a crucial tool in life and sharing your financial wisdom with your children can help them understand how money works.
Good money habits that you can teach your kids can include:
- Teaching them that money has value – From the ages of three to six years old, kids may not necessarily understand how money works, it’s an abstract concept for them to grasp. You can start teaching them the value of money by having casual conversations about how money is spent on groceries, their toys and even your family outings together. You can look at receipts or menus together so that they learn to associate items with an equivalent price or value.
- Helping them shop responsibly – You kids probably think they need everything, it will take some gentle teaching for them to realise the difference between wants and needs. Showing them how to prioritise necessities when it comes to buying things can help them learn how to be more patient with spending.
- Helping them see the value of saving – it’s important to encourage healthy money habits through saving. A savings account or money bank will teach them to be patient and set their own financial goals for what they want to achieve and own.
It’s essential to make the right financial decisions now as you’re building your wealth so that you can secure your family’s future, enabling you to achieve long-term financial goals that can improve the quality of life for you and your loved ones.
Investing in gold can be the first step in inflation-proofing your money and managing your long-term financial success.
Nauggets make gold accessible to anyone, on any budget. To see how easy it is to get started, download our app and start buying some digital gold for your future.