We all dream of being financially secure and free someday. But only a few of us are willing to make that dream a reality. We would rather waste our time complaining about our income, expenses and life as a whole instead of taking things under our control. We would rather make excuses instead of taking action.
Today, we will discuss five things that you should have if you truly want to live a financially healthy life.
1. Financial Plan
It’s good to have a goal. But a goal without a concrete and definite plan to achieve it is just a mere wish. That’s why having a financial plan is very important. There are a lot of financial planners out there that offers free financial planning services. Don’t be afraid to talk to a financial advisor or planner to ask for valuable help. A financial plan will help you ensure that you will achieve all of your financial goals in the future.
2. Stable Income
Even if you have lots of knowledge about investing, you won’t be able to start (or sustain) investing if you don’t have any investable funds. If you want to make your money grow, you need to have stable streams of income to sustain your investment operations.
3. Emergency Fund
An unexpected expense is just around the corner. Those who don’t have any emergency funds will drown in deep debt when an emergency expense comes. If you have lots of debt, your future income will just go down the drain called “debt payments” instead of being used for investments.
4. Life Insurance
Contrary to popular belief, life insurance should be your first investment. In the first place, the reason why you want to invest is to secure your family’s bright future, right? No other financial product can quickly and effectively achieve that goal other than life insurance.
5. Mutual Funds
Let’s face it, stocks are the “hottest” investment vehicle in the market today. We all hear news about famous stock investors and we want to be exactly like them. I hate to break it to you but if you don’t have huge investable funds and enough knowledge about equities, then you are most likely to fail.
The best way to invest in the stock market is through mutual funds. Why? Because mutual funds are being managed by professional fund managers and it gives you the diversification you need to mitigate risks and maximize earning opportunities from different investment vehicles. Mutual funds also invest in different fixed-income instruments. Therefore, you’ll have access to a vast selection of investment vehicles that a regular person won’t be able to access on his own.
You tried it your way and you are where you are right now. For a change, try to acquire these five things and watch your finances grow abundantly.
If you want to get started taking control of your finances, visit my website at www.alfredcardenas.com or contact me at 0995-893-2836.