Let’s talk about the essential elements you need to build a rock-solid financial future. Think of it like building your dream house – you need to start with a solid foundation. Below are four key building blocks to consider.

Make More than You Spend: It’s basic math, but it can be a challenge. Income needs to outweigh expenses if you want to get ahead. The current trend of higher-than-normal inflation leaves many of us with the challenge of cutting some expenses and/ or finding additional sources of income.

Emergency Fund: Life throws curveballs, so it pays to be prepared. Aim to stash away enough to cover three to six months’ worth of essential expenses. When life throws you a financial curveball – be it a job loss or a health issue – you’ll be in better shape to tackle it head-on with less worry.

Wise Use of Debt: Taking on debt for an appreciating asset, such as a home, could lead to long-term financial stability. However, if interest rates and prices are high it might not be the time. Using credit cards to accumulate debt for depreciating and low value items is expensive and a foundation buster.

Investing for future goals: Inflation and taxation of savings make investing for long-term goals such as retirement a necessity. Investing does come with the risk of loss, but this can be mitigated. Diversification, low cost, tax advantaged investment products, and most importantly the proper allocation of assets can enable long-term success.

During the preparation of this work the author used ChatGPT 3.5 in order to make it informal and concise.  After using this tool/service, the author reviewed and edited the content and takes full responsibility for the content of the article.

0