Financial planning can be complicated, nerve-wracking, and even intimidating. Jargon-filled websites and reams of terms and conditions can stand between you and financial security. But does it have to be so complex? We’re going to break down some straightforward ways for you to secure your finances and become confident with your money.
Look After Your Health
We all know how expensive healthcare can be, and the worst part is that it can come from nowhere. If you or a family member are already covered by Medicare, then Medicare Supplement Coverage, or a Medigap plan, is the best step for you.
Medigap plans cover the things which Medicare Plan A and B don’t, such as copays, coinsurance, and deductibles. For a small monthly investment, you could save yourself a lot of time, money, and stress further down the line. There are plenty of options available, so make sure to browse all of the common Medigap plans to decide what’s right for you. If you’re unlucky enough to fall ill, the last thing you need is financial pressure piled on top, so cover yourself now, and thank yourself later.
Set a Budget
Budgeting is the most obvious answer to protect your finances, and for good reason. Having a well-organized budget will save you money and make you feel totally in control. There are dozens of budgeting techniques, one of the most common is the 50-30-20 method, where 50% of your earnings go on ‘needs’, 30% goes towards ‘wants’, and the last 20% is for your savings pot. It’s all about working out which model suits you best based on your income.
There are many online services that can help you out. You can sign up for an account on budget tracker sites and they’ll suggest places you could save, give you inspiration towards new approaches, and give you detailed monthly breakdowns of your spending.
The rise of online banking has lead to the creation of High-Yield Savings Accounts. An online savings account doesn’t have a physical location like a traditional bank, so you can wave goodbye to overhead fees. That trick means that online accounts can offer much higher interest rates, which means it’s a great place to watch your money grow. This is a great choice as a straightforward and safe way to use your money, and you can transfer funds in and out of your online savings account easily through the app.
Consider an Investment
If you’ve got a little money to spare and you’re thinking ahead, then a wise investment could set you up for good. It’s important to remember that most investments are a risk, so this should not be your only option, and you should never invest anything you can’t afford to lose. That being said, you can turn a little into a lot with some good research.
The world of investment is huge, so decide on what’s right for you. Stocks are a classic choice, but you have to be knowledgeable about the industry you’re buying into. Cryptocurrencies are the new kid on the block, but there are a lot of easily accessible resources to help get you started. You should invest in something that you’re confident in, and that interests you.
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