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Five Secrets for Long-term
Financial Success
Rhiannon Williamson
Future financial success is not a guarantee that any one of us
can rely upon, no matter how wealthy we are now or intend to become. There are however five
future proofing financial steps that we can take to protect our current
financial status, improve our future financial prospects and secure our
long-term financial success.
1) Know The Different
Between Good Debt & Bad Debt
Bad debt is any debt that
accrues interest month after month on outstanding balances and includes
credit card debt of course, which is now the most common type of bad
debt that we are all burdened with. Other examples of bad debt include
store card debt, home secured loans other than your mortgage and any
money borrowed from lenders dealing with high risk borrowers as they
charge the highest rates of interest and have the most restrictive and
inflexible terms and conditions.
Good debt is really only
your mortgage, although some people would argue with me and include car
finance in this category even though a car is not an essential item for
most people – if we’re honest with ourselves! Good debt in the form of
your mortgage enables you to afford the roof over your head and for most
of us it is the only way we will ever be able to afford a home.
A mortgage with an
attractive and affordable interest rate will of course cost you money
but at the same time it enables you to purchase a capital growth
appreciating asset that you can later sell and redeem cash from or pass
to your heirs upon death and that will be a positively tangible asset to
benefit their financial futures.
2) Get Out Of Bad Debt
Examine all of the bad
debt you have and prioritize the amounts to be paid off first by
beginning with the most expensive debt in interest and charge terms.
Every month pay off as much as you can afford from your number one debt
and proceed with this approach right through every bad debt you have
until you have no outstanding amounts remaining.
Then – take on no new bad
debt! Keep out of credit card and loan hell.
3) Pay Off Your Good Debt
Having worked hard for as
long as it takes to pay off all of your bad debt you can now turn your
attention to your mortgage – some mortgage lenders penalize for early
repayment so consider re-mortgaging if you can get a better or same rate
of interest and you won’t incur arrangement fees, or try to arrange new
terms with your current lender that will allow you to make regular lump
sum repayments.
The shorter the life of
your debt the less interest you will pay and the sooner you will own
your own home – your most significant financial asset – outright. This
will give you massive security and also free you up financially to enjoy
life to the full and save more towards your retirement.
4) Save For Retirement
Most governments of the
civilized world reward their citizens with tax breaks on retirement
savings made. Furthermore many conscientious employers add to an
employee’s contribution to a works pension scheme. Find out what
benefits you’re entitled to and get a retirement savings plan in place
immediately. It is never too early to start saving for retirement.
Whilst paying off your
debt is an essential step on the road to long-term financial success, so
ensuring your future is secured through saving today for your own
financial wellbeing is an essential step. After all, if you don’t look
after your best interests, no one else will.
Put as much as you can
possibly afford each month into the best savings or investment product
to suit your requirements and circumstances – and start today.
5) Protect Your Personal &
Financial Assets
Insure your life, your
family, your health, your business and your home – then use the services
and advice of qualified taxation and trust professionals to find out
whether there are legal and legitimate ways in which you can reduce your
overall taxation burden and your estate’s future inheritance or death
taxation burden.
Look after your personal
interests today and ensure that your financial assets are protected for
life.
About the Author:
Rhiannon Williamson is a freelance writer whose many articles about
onshore saving and offshore investing have appeared in financial
publications around the world. Visit this link to read her latest
articles about
Offshore Investment
Rhiannon Williamson
is an independent offshore investment overseas living and international
property expert and publisher of
www.ShelterOffshore.com. This is an online
publication covering offshore banking offshore investment living
overseas and investment property abroad for expatriates international
investors and those dreaming of a new life abroad. |
