We can all find ourselves focusing on what is happening from day to day. There isn’t anything wrong with that approach, after all, you may have a goal in mind for quitting the rat race of your job, wanting to start your business from home, or paying for something like a holiday or house deposit. I get it. Short-term goals are absolutely fantastic for keeping your inspiration and motivation levels high and buzzing. But what about the future? Do we really stop to wonder how are the situation will be in our golden years, or even ten years from now?
I understand that often short-term goals can lead to affecting your future. For example, you may want to leave your job and start your own business and that could then help you go on to earn more money than you ever did before, plus the assets and business you will have created have some value and worth. It is exciting. But there are other ways that we can ensure our future, and often they can go hand in hand with your short-term goals and actions.
I thought I would share with you some of the things you could start to think about right now that could help towards your future lifestyle and financial situation. I hope that it inspires you to take a few moments in the here and now to think about what your future holds, not just for you but also for your family.
Move aside Short-term goals, Let’s think about the future
Buying a property to live in and make money on
One of the biggest things you can do in your life is buy the home that you live in. There is no hiding from the fact that it will possibly be one of the most expensive purchases you make in your lifetime. But investing big means bigger rewards, right? The truth is, with property, the valuations do tend to increase over time. That being said there are things you can do to speed up the process.
One way to do it would be to buy a property that is in need of renovation or interior update and modernising. You will need money aside to actually invest in the project. For example, you may want to build extensions or replace bigger high-value items like kitchens and bathrooms. They will all cost money initially, but the actual cost will be less than what the value could be increased to.
Many people do this in the home they live in, improve it over a year or two, and then sell it and move on to the next. Each time, banking the money and then increase their outlay in terms of the overall investment of the property. This will then increase to provide you with a built-up nest egg of finances for your future, just by simply improving the property, you live in and therefore making wise property choices.
Considering additional properties for an income
Property investment doesn’t need to stop with just your own property that you live in though. Taking the right steps there is good, but if you can, you could consider a new property that could provide you with investment. Renting out properties to people struggling to get on the property ladder not only gives you the long-term investment of the house or apartment, but it actually gives you a short-term investment and profit as you receive the rentals each month.
There are a few different ways you could make money from additional properties, renting out for residential use, or even considering things like a holiday let where you rent out at certain points of the year, but the overall cost can be higher as the rental amount is for a week or two at a time. Furthermore, if you do get a taste for renovating properties, there is nothing to say that you couldn’t do it on a smaller scale while living somewhere else. Smaller houses are always in demand for the first-time buyer market, and often a modern and up-to-date home is more popular than something that needs work.
Investing in a small regular savings account
We know saving is good, and we know that we need to do it more regularly. But yet our small and short-term savings can often be put towards other things such as holidays and items we need for our home. There is nothing wrong with that. Having short-term goals is great for this as while you work hard you also need to enjoy your life. However, with the future in mind, setting up a regular saver that saves only a small amount each month will soon add up in years to come.
Think about it differently, say you have a take-out coffee every day. Taking the cost of one of them, and multiplying it by four is technically four coffees in the month, putting that away each month is hardly going to be noticeable, but in ten and twenty years down the line, you would have saved a fair bit. Think about what amount you won’t notice and start saving more regularly.
Investments in stocks and shares
Maybe you like the idea of a long-term investment, then stock and shares could be something you should consider. However, there is an element of risk to it, so I suggest that you do plenty of research ahead of actually investing money to ensure that you feel comfortable with your choices. Stocks and shares rise and fall, so it is important for you to understand that this could be a game that you sit on for a while until you start to see a healthy return on your investment.
Have you got pensions or a sustainable income for the future?
Finally, have you thought about an income for your future? These days employers will already have you paying into pensions, which is a good thing, but it might be work seeing advice from an independent financial advisor to ensure that you invest properly and consider the lifestyle for your future. Knowing what you want will help determine what money source you will need to sustain it.
I hope that this has given you food for thought to consider your future situation.