What to do When Planning For Your Future
What to do When Planning For Your Future
It’s never too early nor too late to start planning for the years ahead of you, whether your principal focus is to plan to save money for any future endeavours, or whether you plan on carving up a successful business, now is the time to get the wheels in motion and prepare planning for your future. Remember, too, that you’re never too young nor too old to begin planning, so there’s no time like the present. Be sure to keep your eyes and ears alert for tips, tricks and advice for building your future and self-investment. Keeping track of your plans allows you to see exactly what is going on with regards to saving and investing, money management and deadline and goal achievement. It’s important to recognise and understand all the necessary components of planning your future, so get clued up and go from there. The useful acronym to bear in mind as you go ahead with planning your future is SMART, which is broken down into five handy objectives. Your plans should be: Specific, Measurable, Attainable, Realistic, and Timely.
Begin With The Basics
Figure out where you are in terms of developing your future, and where you want to be. Planning your future is no easy feat, and there are many twists and turns along the way, you may not even be one hundred percent sure of what you wish to do with your life and no idea of how to get there. Having said that, it’s impossible to plan your future to the finest detail, as you simply do not have control over every element of your life, so in this case, it’s important to save some money aside for unforeseen circumstances; have an emergency fund, that, you guessed it, you only access in the state of emergency.
Begin with the basics and categorise the elements of importance in your life, your career goals are different from your family goals so take this into account and start by drawing up four columns, to start with, since you’re beginning with the basics. Start with four columns under the heading, Career Goals, Personal Goals (like health ones), Family Goals, and a fourth for spiritual goals that may entail travel and education, named appropriately as “Spiritual Goals,” for example. Think of this last category as a miscellaneous one for you to include having fun and enjoying your time. You’re planning for your future and your family’s future, so take time to enjoy life along the way.
Planning Your Later Years
For some of you this might be a long way off, however, again, it’s never too early to place safety nets around you should you need them. For others, this predicament is just around the corner so be sure to take note and gain further understanding of what you need to have in place in order to relax in the knowledge that your retirement is well funded, and any inheritance you wish to leave to your loved ones is sorted. Seek advice if there are elements you feel you do not understand well enough, after all, financial planning for your afterlife can be confusing, and having someone to explain all of the proceedings in simple terms, can put your mind at ease and help you to enjoy your later years free from the worry and concern of your family’s financial situation after you’ve gone.
Get The Ball Rolling
Start by calculating your net worth, and this is easier than it might at first sound. You need to determine your sources, and amount of income, including the amount kept in accounts, retirement funds, your house and land and any vehicles you own, and determine your outwards monthly expenses, by doing this you can work out what you own and what you owe. If you’re paying money off in whatever respect, take this into account and work out exactly how much money you have to your name. Be practical in your approach to setting money aside for your family and look closely into using a Practical Planning System, and clue yourself up by learning about the different accounts you can store your cash or assets.
You’ll want to know that you can provide for your spouse in the event of your death, so researching credit shelter trusts and marital gift trusts can provide you the reassurance you need. These type of accounts offer individuals with significant assets the opportunity to reduce or eliminate the taxable value of their estate, and they’re becoming increasingly popular as an estate, and financial planning tools.
Keeping On Top Of Spending And Saving
In terms of keeping your future plans attainable and realistic, you’ll need to be keeping an eye on your spending and saving. You can decide how much of your monthly income you wish to put aside and into a savings account, and by doing so you’re seeing that money hidden away and you’ll be far less likely to spend it should it be kept in your everyday current account. A good place to start is around 10%; this way, it won’t make too much of an impact on how you live your life, and you’ll still have the money to enjoy living, as few months that pass by, consider increasing the amount of cash your transfer into your savings account.
You can work towards investing 25% of your monthly income into savings. By putting money aside each month, you’ll be forced to keep the amount you’re spending in check too, and it’ll be more apparent to you, and perhaps you’ll know the areas that require an extra check. Create a tangible visual list of what you’re buying and how you could improve, for example, if you’re ordering food out most nights, then rein in this extravagance and begin cooking at home. Save money through an increased level of home efficiency, if your energy bills are consistently high, then invest in getting efficient and cost-effective double glazing for your home or a new heating system, for example.