3 steps to a successful financial future

Steps that will go a long way.

07:29 17 December 2013

If you are concerned about your financial future, you are probably wise. Many people find themselves in difficult financial situations and need to depend on assistance, friends or family. In order to avoid that fate, or sudden financial difficulties, there are a few steps you can take to ensure success.

• Develop savings—the first step to take when creating a stable financial future is to save some money for emergencies. One automobile accident, broken appliance, or medical bill away from a financial catastrophe. Your life may change. Building up a savings account allows you to take care of such emergencies without causing financial issues or tapping into investments.

 

• Plan for the future—it seems obvious, but there are many people who don’t sit down with a professional to figure out exactly what amount is needed for a secure financial future. When it comes time to retirement, there are many people who don’t have enough to sustain their normal lifestyle. Plan for the future with pensions and ISAs.

 

1. Pensions—employers are now required to offer multiple options for pensions. Many employers will offer to contribute a certain amount of money into an account for you in addition to the money you contribute as well.
2. ISAs—there are two types of ISAs that you can put money into. A Cash ISA (Independent Savings Account) earns more interest than a traditional savings account, but not quite as much as you might earn by putting money into a Stocks and Shares ISA. Cash ISAs are usually used for short-term savings goals.

 

• Purchase Insurance—while insurance may seem as though it is an unnecessary expense, it does actually help a great deal. Purchase what you need for insurance and make sure it fits your preferences. Some may prefer term life insurance, while others may prefer whole life insurance.

 

Follow these basic steps to create a solid financial plan that will set you up for success.