Creating a balance between your dreams and financial reality
Most of us are broke by the end of the month. It is not so that we aren’t working that hard to earn but just not enough to chase our dreams. The chase between our dreams and our financial situation feels in most cases like a never-ending process.
Well, while there is no way you can eliminate this process altogether but you can exert better control over the situation. This is possible if and only if, you think about implementing a specific structure that can prevent you from landing in such situations.
If you follow the steps mentioned below there is possibility that you may bridge the gap between your dreams and financial reality:
· Step#1-Set your goals
Most of us go wrong with the first and most important step to determine what we want. We may not go completely wrong but at times fail to differentiate between our needs and wants. Thus, it is important to think rationally about what you can actually achieve. In this situation, you must understand the value of money and try saving every pound you possibly can.
At times, it is difficult to prioritise a single goal but you have to be determinant enough to set a particular goal and then stick to it.
If you do not have great control over your expenses, a to-do list can be of great help.
· Step#2-Be Practical
If your personal fancies or fantasies are preventing you from coping with reality, it’s time to snap out of it. As part of setting a specific goal for yourself, prepare a real plan, which you can practically implement. You have to structure your plan in such a manner that you effectively achieve your goal.
Planning helps you to determine a path towards reaching your destination. If your plan is to buy your own house in the near future, you can start by checking current prices of houses and accordingly start saving. Track your expenses and prepare a proper budget. Try cutting down on unnecessary expenses and save more. This saved money will help you to purchase your own house.
· Step#3-Invest early
If you are already independent start investing your money as soon as possible. This investment can be helpful in the future. Do not invest under influence of any sales person instead seek assistance from experts for right guidance. You, yourself can carry out in-depth research with help of knowledge you have acquired so far and through financial websites. Being restless and taking decisions in haste may not really work in such situations therefore be patient enough to understand the current market scenario.
Measure the pros and cons, future market prospects, risk involved, etc. and then draw a conclusion. Start investing early as it can be more fruitful.
For instance, if you wish to purchase a column radiator for your new home, you must search for all advantages and disadvantages of it. Besides, search for varied options available along with it. You may also seek assistance from renowned companies as they have quality industry experience.
· Step#4-Plan your retirement
When you are single, you probably have lesser responsibilities as compared to somebody with a family. The latter has to shoulder responsibility to run the house and mange various other expenses. You currently may have several expenses but you cannot neglect your future.
By this, I mean you have to start saving for your retirement at an early age. Calculate your monthly earnings and expenses based on these figures and invest in a retirement plan.
By not investing in a retirement plan you possibly might be making one of the biggest blunders of your life. In fact, it signifies an unsecured retired life which is definitely not good. One reality that you cannot neglect is that what might cost £1000 today may go upto £4000 by the time you retire.
· Step#5- Seek assistance from a Financial Advisor
There is no harm in admitting that you are not well-versed with financial transactions, investments and expenses. You can always seek assistance from a financial advisor to obtain correct knowledge about your finances.
In case you have any doubts with respect to your current policies clarify it with your advisor. If you plan to invest in a insurance policy or any other policy ask the advisor whether it is beneficial for you or not in the long run.
Also, open a savings account and start investing money in it. You could possibly fix a specific amount and save that much each month in this account.
If you plan your financial goals in accordance with your goals and dreams you are likely to meet them. The main element is to take initiative at the right time and begin the process of saving before you actually want to achieve it.