24
Sep
2015

6 Tips To Ensure That You Don’t Die Penniless

People work hard all day just to make ends meet. For them, there are very few luxuries and a great many sorrows. They persevere to carve a place for themselves in this world, but one day they find themselves right back where they started. After toiling for many years, they have nothing to show for it. No house, no savings and no source of income. Only those who have experienced such despair can understand it. For others, these are merely words. In order to avoid such misfortune, here are 6 tips you should follow.

Prepare a Monthly Budget

It’s ironical that some people never have to worry about money, while others lead a life of penny-pinching. The lives of the latter half are dictated by the terms of their budget. A self imposed shackle that’s meant to protect them from their own desires. Those who always find themselves scraping for cash should embrace this shackle if want to survive. It’ll give them the discipline to spend their money wisely, so they don’t have to worry about next month in advance. Nothing’s worse than living in fear of tomorrow.

Make Wise Investments

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The stock market is a reserve of untold riches, but only for those who are already rich. If you decipher the numbers well you could be a millionaire, otherwise you’ll lose what little you have. Be very careful about investing money in the stock market, because it’s a slippery slope. You may lose more than you gain. Not only is investment difficult to begin with, but it’;s also dangerous due to the con men lurking about. They promise you a fortune and take you for every penny you have. If investing money isn’t your cup of tea, then I suggest you stay away from it.

Plan for Big Expenses

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Every major expense in your life must be planned ahead of time. Unfortunately, that’s the only way you can go on vacation or send your kids to college. You know these expenses are on the horizon, so you should start saving for it months, and sometimes years in advance. That’;s how most people send their kids to college, by setting up college funds for them. Slowly but steadily they put money into this fund, until the day their children graduate. With proper planning you can overcome difficult situations such as this.

Rainy Day Fund

Unfortunately, not all expenses can be prophesized beforehand. Some of them just creep out of nowhere. A medical emergency might cause you to break the bank or an impromptu wedding. Either way, in these situations you need money, fast. The specific cause for the expense may be unknown to you, but that doesn’t mean you can’t prepare for it. Always have a rainy day fund on standby for situations such as these. This fund should be a last resort for you and it should never be used unless there’s an emergency. You can put in a lesser amount of money into this fund than you would in anything else. Just remember to keep it well stocked for when you need it.

Get Insured

We’ve already discussed the possibility of a medical emergency and how you can be financially unprepared for it. Getting insured is the best way to deal with such situations. Being covered under a good insurance policy can put your mind at ease, so you don’t have to worry about your health in the future. There are other types of insurance policies that you could benefit from, such as income protection insurance. This will ensure that you receive benefits in case you’re incapacitated and unable to work.

Aim for Early Retirement

They say the number one killer of old people is retirement. However, that doesn’t mean your job is any less stressful. The sooner you’re done with it the better. You should aim for an early retirement, so you’re not too old to do anything after it. It’s not like your plans come to fruition at the right time anyway, so maybe you should aim high if you want to hit the mark accurately.

Bill Gates once said, “If you’re born poor it’s not your mistake, but if you die poor it’s your mistake.” If that’s the case, then prosperity is in your hands. So use these tips and make sure that you don’t die penniless.

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The author of this article, Ron Jackson, is an employee at Donnellys Insurance, providers of income protection solutions in Australia. Ron is passionate about art and can be frequently found at various art exhibitions on weekends.

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