Although the actual definition of ‘going broke’ may be fluid at best, it is a well documented fact that even multimillionaires sometimes stumble into rough financial times, just like normal folks. It gets especially bad when that happens during old age when opportunities to redeem oneself are hard to come by.
With globalization and the cyclic nature of the economy nowadays, financial security has been elusive for the majority. You can have a well paying job today and lose it tomorrow just because your employer decides outsourcing overseas is cool. It is therefore important to take steps early enough to cushion oneself from potential future financial upheavals. Below are some smart strategies you can use to secure your financial future.
1.Balance your Life
A lot of people out there equate frugality and intensive saving culture to automatic financial security. This is however far from the truth. In order to achieve the ultimate goal of life, which has been described as ‘the pursuit of happiness’ and financial freedom in numerous quarters, you need to balance your life. That means taking the time to enjoy what today has to offer such as your family, friends and a career – while not compromising future possibilities. You therefore need to establish clear boundaries to limit yourself from over indulgence.
2.Invest in Yourself
The one asset that is almost impenetrable to external factors is the set of knowledge and skills that you learn during your lifetime. It is therefore important to invest in skills that will make you more marketable and increase your future earning power. It is never too late to acquire a new skill and luckily, the digital world has provided us with numerous portals where we can learn income generating activities. Investing in oneself also means maintaining a healthy lifestyle by eating well and engaging in regular exercises. It would be pointless to have a lot of money and not being able to enjoy because of poor health.
3. Have multiple revenue streams
The baby boomer generation had it going well in the past as most of them could fully count on their salaries to sustain their daily living expenses and have some funds left for retirement planning. The reality the millenials now face is that careers are not secure and the cost of living has skyrocketed. It is therefore important to establish a side hustle that can help you generate extra income to supplement your salary. There are numerous opportunities online, from forex trading to part time online jobs. Sometimes these side jobs can end up being so successful and you may want to abandon the conventional job to focus on them. You should be careful though that you channel your earnings to meaningful long-term investments to secure your financial future.
One can also invest in Agribusiness, which is an area where Ushindibora has been helping its members with financial as well as technical skills to get them started. You can reach us here for further details on this.
4. Living within your means
This may sound like an ‘old folks saying’ but its application is timeless. A lot of people today are tempted to max out their credit cards and other facilities ostensibly to spend on luxuries they don’t really need. The rule of the thumb is if you can do without it and it does not add value to your net-worth, don’t borrow to acquire it. Save and be patient – you will be able to afford the item in the near future.
5. Plan and take calculated risks
In case you find yourself in a sudden financial quagmire, you can count on Ushindibora for short-term loans to get you back on your feet. Check out our M-Ushindi loan facility to find out how it works.
Ultimately though, the most successful people in life are those who take a certain amount of calculated risks. Understand how to navigate the financial world and learn how to invest in the stock market or the many other avenues available. Your funds should always be out there working for you. In all these, it is prudent to involve our professional financial advisors every step of your way.