Achieving life security can mean different things to different people. For some, it can mean having a happy family, a profitable business, or owning a house. For others, it could mean a stable, high-paying job that allows them to live comfortably.
Whatever your definition of life security, achieving this is no simple task-it takes a lot of work, dedication, and focus. What’s more, nobody really knows what the future holds so we must prepare ourselves for anything. Fortunately, there are things you can do to help shape your future for the better. Here are some tips on how you can achieve life security during these uncertain times:
Keep your goals in mind
As you work towards your goals, you’ll have to overcome many obstacles along the way. But as long as you never lose sight of why you are doing this in the first place, you’ll always get back up again. Having this attitude is the first step towards your goals, whether it’s working for a big company or buying your own house.
Build an emergency fund
Nobody knows when emergencies will happen, so it is important that you start an emergency fund as soon as possible. Experts recommend having three to six months’ worth of monthly expenses in your emergency fund. Prioritize building this fund first before investing in anything else, and make sure to not use it for anything that isn’t an emergency. You can even create a separate savings account for it
Borrow with a purpose
Loans can become powerful financial tools when used smartly. For example, when you use a loan to fund a business launch or expansion that becomes profitable, or if you invest it in education to further develop your skills and income-generating capacity. These are examples of purposeful borrowing.
Do not borrow money without a purpose. Using a loan to purchase expensive designer bags or clothing, or to go on an unnecessarily expensive vacation, are not purposeful uses. Always think about how the loan can advance you on your path toward life security.
Secure your retirement
If you happen to have the extra money, set it aside for your retirement. The sooner you start saving up for your retirement, the better, as time and aging cannot be reversed. A good rule of thumb is to try to determine how much you think you’ll be spending once you’re retired and try to grow your extra money with a combination of cash savings, property, and investments.
Consider long-term investments
Investing your money is an excellent way to secure your financial future since this not only safeguards your hard-earned savings from inflation, but it also generates returns. How much returns you get depends on your investment strategy. You will need to look into the different kinds of investments and determine how much you are willing to invest, as different investments involve varying levels of risk.
If that sounds like too much work, that’s because it is—even seasoned investors get overwhelmed by all the planning, research, and investing. That’s why banks like EastWest offer different products and services that take away the hassle of investing yourself. With multiple investment options such as fixed-income securities, government securities, bonds unit investment trust funds, and trust funds, EastWest has the right products and expertise to help you grow your funds, so you can focus on your dreams.