A car? Check. A place to call your own? Check. Being debt-free? Check. We all have a range of financial goals that we would like to tick off our bucket list and hang ten at a holiday destination without having to worry about our finances.
When it comes to building something that will last while we are still living and long after we have gone means it is time to assess the way we handle our finances. We have put together a list of things that you should have on your bucket list to leave a lasting legacy.
Start learning good habits
Making bad money moves can feel good at the time but can have long-lasting repercussions. It is the small habits that we build today that can make or break our financial future. Therefore, learning ways on how we can become financially literate, cutting back on financial behaviours that cost us, and working on what works for you is something your future self will thank you for. The key is, to be honest with yourself and avoid comparing your financial situation with others. Always remember that comparison is a great thief of joy.
Create a diverse financial portfolio
As the adage goes, 'Don't put all your eggs in one basket' can save you and your finances from life's unexpected moments. Speaking to a financial advisor can give you insight into how you can diversify your financial portfolio and work with what you have. Doing this can also let you see what the best way is you can maximise your funds without putting a strain on your wallet. Avoid investing in too many things at once, but slowly build your investment between stocks, exchange-traded funds (ETFS) and real estate.
Create a family legacy
Family means different things to everyone. It could be your blood relatives, your tribe of people you have met along the way who you now consider family or even your pets. Whatever family means to you, protecting them is at the core of why we do most of the things we do. When it comes to having a financial safety net that will protect them when they need it the most or to help them continue a legacy that you have started creating, it is vital to think long term. So what does this mean?
Savings. Having savings can be a useful buffer to protect you and your loved ones from unexpected expenses, especially when you are faced with an emergency. Start putting aside an amount that you can consistently afford monthly, and slowly increase the amount as you begin to earn more.
Educational funds. For anyone planning on having children or would like to start a fund that helps people who are unable to afford educational fees, you may want to start considering opening an educational fund. Remember to look for ones that have a good interest rate to boost whatever you are putting aside.
Life insurance. It is known as the foundation phase for anyone who is looking to start financial planning, but it is equally important to have on a bucket list. Not only will it offer a financial safety net against the costs that come with being diagnosed with a terminal illness, but it will also make sure that your loved ones are taken care of.
Retirement funds. Assuming that you will want to stop working at some point, a retirement fund will give you peace of mind knowing that your daily living expenses will be taken care of so that you can enjoy all the things you want to enjoy with no interruption.