When it comes to money, you always want to make sure that you’re in the best place possible. While we may think that we’re always going to worry about money, that doesn’t have to be the case. It’s normal to have goals and feel as if you’re constantly chasing after the next thing. But you can also put measures in place that will allow you to feel set up for the future. Even if you find yourself in a negative financial situation, there are always ways to pull things back. So if you know that you’re ready to make a change to your financial future, it’s time to do something about it. Regardless of where you are now, what career you have currently, or where you want to be, there are always ways to ensure that you have a secure and abundant financial future.
The most important thing for you to realize here is that you are in full control of this. As long as you have the intention to turn your finances around, you can certainly make that happen. As with anything in life, if you have a goal that you want to work toward, it just takes you to create a plan, outline the action points you need to focus on, and get started. So in this blog post, we’re going to look at exactly that. If you know that you want to transform your financial future, you’ve come to the right place. Let’s dive straight into it.
Getting Clear on Your Starting Point/Set the Right Goals
From here, you then need to make sure that you set goals that you can work towards. Without having concrete financial goals in place, you may find that it’s hard for you to focus on getting to where you want to be. When you have goals, you will find that they are there to hold you accountable and provide you with a plan of action to follow. So first of all, you need to drill down on exactly what being financially secure looks like to you. Then, you can bring it all to life.
Dealing With Bad Debt
Then, when it’s time for you to get things underway, it’s always wise to tackle any bad debt that you have. Understanding the difference between good debt and bad debt can really help you on your journey here. It’s all about ensuring that you’re not holding onto any debt that can harm you and instead, focusing on debt that can generate income. So, if you know that you have excessive credit card debt or loans in place, you may want to tackle this first before you move on to anything else.
Building a Safety Net
With that being tackled, your next port of call is for you to make sure that you have a safety net of savings behind you if you don’t already. What you do here will be entirely up to you. Some people like to have three to six months’ worth of income set aside, while others prefer to have more like six to twelve months. It’s key to work out how long you’d like to be covered for should something happen to your income or your ability to work.
Focus on Secure Investment Options
As you’re moving forward, you’re then going to want to think about the investments you’re looking to make. Here, you might want to go with lower-risk stocks and bonds under the guidance of a qualified financial advisor. But you should also consider real estate. Real estate is generally considered more secure due to the nature of the market. Investing in property over a long period of time can not only create an income for you, but also allow you to build a portfolio. Again, make sure that you get the right advice based on your own personal circumstances here.
Consider Alternatives
Alongside that, you might want to look into a variety of different options to support your more traditional approach. Here, looking at the right alternative investment strategies is important. More specifically, considering real estate investment trusts (REITs), non-traded REITs, and Delaware statutory trusts (DSTs) is a strong choice. This is because of their current favorable valuations, stabilizing interest rates, and sector-specific growth opportunities. They also come with a range of benefits, which we will now explore.
The Benefits of Diversifying with Alternatives
Firstly, you’re going to find that you’re able to tap into a steady income. REITs are required by law to distribute a minimum of 90% of taxable income among shareholders as dividends. This makes them perfect for income-focused investors. When you’re considering key alternatives, you’re also allowing yourself to diversify your investment portfolio. Alongside any stocks and real estate, with REITs, you’re getting real estate exposure without actually buying the property. This helps to balance out a stock-heavy portfolio.
Work on Additional Income Streams
Finally, to add to that, you may also want to consider the option of adding additional income streams into the mix outside of your investments and full-time salaried job. Having multiple sources of income can allow you to diversify in life, not just in your investment portfolio. Looking to start a business on the side or add an additional revenue stream can also make you feel more secure and protected financially as you move into the future
Final Thoughts: Creating a Secure Financial Future for You and Your Family
Ultimately, your overall aim here is to ensure that you obtain more security for your family. This means that you’re going to want to focus on long-term prospects over anything that seems too good to be true. Even if you’re looking to start small with your financial transformation, it’s important to recognize that this is something you can build on over time. Make sure that you take the steps that feel most appropriate to you to improve your financial situation. Then, as you look to build your investments and savings, you should have peace of mind that you’re creating a more secure future for you and your family.
