An important step in creating financial security is creating an emergency fund. An emergency fund essentially provides a way to prepare for any unexpected expenses. This savings fund will give you access to money in hard circumstances without having to borrow and accrue the wrong kind of debt.
It might be a good idea to create both a long term and a short term emergency fund. This could be done by dividing your emergency fund into two separate accounts, one of them easy access and the other not. The long term emergency fund would be for the biggest emergencies and would contain the largest amount of money.
A Good Investment
To build future financial security, Jason Hartman recommends making diversified investments into income property. Avoid investments into stocks, bonds, gold, and similar adventures because they’re not as reliable as income
property can be with the right strategies, and they don’t necessarily create the same wealth and security a person can create with real estate.
With all the things going for it like the inflation advantage, positive cash flow, good debt, valuable assets and more, a good investment into diversified income properties will create financial security and help you to reach your goals.
Saving Toward Your Goals
You can have one account for all your general goals, but it may be a better idea to have a separate place for each individual goal. Make an effort to prioritize each goal and
direct larger or smaller sums of money accordingly. This will not only provide a way to organize your targets, but it can also work as a motivator to reach them.
When each account has a specific name and purpose, you may feel more inclined to put money into them. Also, when money gets piled into just one account with no specific name or purpose, it can sometimes become difficult to determine how much more you need to reach each individual goal. Divided accounts can solve this problem.
A Retirement Fund
Though it’s possible to create security for the future with the help of income property investment, putting money toward a retirement fund couldn’t hurt. Put a little bit toward your retirement as you would with other goals, but keep in mind that it may be best to put
most of the money to work with a reliable investment.
Interested in learning more about creating future financial security with income property investment? Read “Making Sustainable Investments” for more information. (Top Image: Flickr | Images_of_Money)
The Young Wealth Team