*This post may contain affiliate links, which means if you click through and make a purchase I may receive a commission at no cost to you. Please read my disclosure for more info.
Managing money is tricky, not only do you need enough to live in the here and now- but it’s so worth thinking about the future too. Later in life when you’re no longer working you’ll have less money and need to find ways to make ends meet while still living the life you deserve. Here’s what you can do right now to future proof your finances.
Getting out of debt is one of the smartest ways to futureproof your finances. Sell things you don’t need, start a side hustle or consider working some extra shifts at your job if you can to raise money. If the debt is completely unmanageable you could speak to a debt company or charity, they’re able to advise you on what to do and can liaise with creditors on your behalf. They might be able to work to get your interest frozen and arrange lower payments to make things easier.
Every single adult needs a budget in place, it doesn’t matter if you have a lot of expendable income or hardly any. Having a budget puts you in control of your finances and ensures that all of your important expenses are paid and covered each month. It stops you from falling behind or getting into trouble with your money.
Getting onto the property ladder and spending years paying off your home can be hard work. However, owning your home outright means that later on you’re no longer having to pay rent or mortgage costs- which is useful once you’ve retired and the money you have is much less. This can make your financial situation much easier, and you have something to pass onto children or loved ones when you’re no longer around.
It’s easy to put off sorting out your pension, retirement can seem like a long way off. However, it’s all about starting early. Unless you want to live off a meagre state pension in retirement, it’s important to plan ahead. If you’re an employee then your company may have opened a pension account for you, if you’re self employed then it’s something you’ll have to look into yourself. There are lots of providers that offer pension services so do some research and use one that suits you.
Having access to some cash for a rainy day is always a good idea. You might have your home bought and your pension sorted, but in some cases you’ll need money to use for things so start a savings account and dont touch it unless its for emergencies later in life. Maybe you’ll need to pay for some specialist medication, or perhaps you’ll need to spend some in home care to help you get by when you’re older. This could be for anything from personal care to maid services, meal services or whatever else you might need later in life.
No one wants to sit and think about death, and in our society (unlike many others around the world) it’s still a taboo subject. However creating a will can be vital for your family’s future, we all have to die someday so why not get this sorted early on so you have peace of mind. Once it’s done you don’t have to think about it again.