5 Life Planning Tips for the Novice
Introducing Brittany Fisher
It’s my pleasure to introduce Brittany Fisher.
Brittany Fisher has spent more than 20 years as a CPA. She runs her own site, Financiallywell.info where she shares her knowledge about taxes, personal finance and general financial literacy hoping to help anyone who may benefit from it.
As a guest post, Brittany has chosen to give you her 5 Life Planning Tips for the Novice. For those wishing to improve their financial well-being, you should find these tips helpful.
Brittany has carefully researched and selected websites that will give you more information when required. Simply follow the links in her article.
5 Life Planning Tips for the Novice
When you’re young, it may be tempting to procrastinate life planning. After all, you’ve got your whole life ahead of you! Plus, life planning can seem like an intimidating concept if you don’t know much about it. But the truth is that it’s never too early to begin thinking about your future. The sooner you start putting the pieces in place, the more secure you can make the years ahead for yourself and your loved ones.
Fortunately, you don’t have to get lost in the complexities of life planning to start taking steps toward a bright future.
Get the juices flowing
The first stage of financial planning is to think about it. Even if you don’t yet know how to plan for your future, it’s beneficial to be conscious of the decisions you make. Always be mindful of where your money is going, and it will help you develop healthy financial habits.
Adopt a mindset of saving
If you’ve yet to do so, start saving immediately. The earlier you get in the habit of saving, the more money you will accrue over time. A lot of people consider their savings to be whatever is left over after their monthly expenses are accounted for. However, a better way to approach it is to view your savings as an expense when you develop your budget. That way, you will always be sure to save consistently.
Learn to budget
Speaking of a budget, you can’t achieve financial success without one. While it will likely fluctuate throughout the different stages of your life, learn how to create and stick to a solid budget now. Get advice from family and friends and find a mentor or advisor. You can even reach out to a freelance financial consultant to help you work out a budget. You can also use financial-planning software from Financial Mappers. Do whatever is necessary to form healthy budgeting habits that will prove valuable for the rest of your life.
Plan to invest
There are many ways to invest. As a young adult, one of the most common paths is to contribute to superannuation. Another solid option is to invest in real estate. Owning a rental property can provide a consistent stream of passive income, meaning that you don’t have to do an overwhelming amount of work to grow wealth. Also, there are relatively few barriers to entry, especially if you convert your current home into a rental when moving to a new home. Moreover, rentals can be a good investment no matter what market you are in.
Some challenges come with real estate investment, however. For example, if you’re looking to buy a property for the sole purpose of renting it out, you will likely need a significant amount of cash flow to make it work. If you plan to own several properties, managing the properties can become difficult. And you must be prepared to meet obstacles to finding good tenants and dealing with problem tenants.
Finally, obtaining insurance should always be a priority. It provides a layer of protection that can help ensure the security and well-being of yourself and your loved ones now and in the future. Start researching the various types of insurance, and find the best plans you can work into your budget. This includes health insurance, car insurance, and life insurance, among others.
Don’t be overwhelmed by the notion of life planning. Know that you can take small steps today that will put yourself and your family in a better long-term position. Along with considering the tips listed above, continue researching how you can add financial security to your life now and in the future. That way, you can rest easy at night knowing you are laying a solid foundation for your life!
Brittany Fisher – Financially Well
Disclaimer: Financial Mappers does not have an Australian Financial Services License, does not offer financial planning advice and does not recommend financial products.