Money

5 Seriously Simple Steps To Future Proof Your Finances

By Ben Nash
18th Oct 2019

how to future proof finances

We all know it’s important to think ahead when it comes to your money, but there are so many things you need to be across it’s hard to know where to start.

I’ve outlined my five top tips to future proof your finances here.

#1 Spend Less Than You Earn

This one area is the single biggest driver of your money success. It sounds simple, but the sooner you can master this money skill, the faster you get ahead. In the absence of a trust fund or Powerball payout, you need to get this one right to avoid a retirement of catfood and shop-a-dockets. You can’t live a champagne lifestyle on a beer budget. Commit to spending within your means and you’ll set yourself up for a lifetime of financial success.

#2 Don’t Run Personal Debt

Trying to set up your financial future while carrying a bunch of debt is like trying to run a marathon with a parachute strapped to your back…You can move forward, but it’s super slow going, and totally exhausting. Ditch the debt to make getting ahead easier, and your future self will thank you for it.

#3 Invest Beyond Cash

Because interest rates on cash savings are so low, saving money at the bank for the long term is a super slow path to money success. The reason being that because the cost of a latté from your local barista goes up every year, and the interest rates on savings accounts are generally pretty low. If you really want to future proof your finances, you need to invest. Whether it’s shares, managed funds, ETF’s, or investing in property, these investments tend to keep up with the cost of a coffee at your local and make you a bit of money on top.

#4 Use Tech To Support, Not Drive Your Money Management

These days there’s a lot of tech that can help you manage your money better. But there’s a big difference between delegating and abdicating. Tech can help support you with your money, but I firmly believe you should be responsible for your own financial success, and not expect tech to make it happen for you. Have your basics in place, and no matter how technology evolves you’ll be the one in the driver’s seat when it comes to your money.

#5 Don’t Follow The Crowd

Money is one area where psychology has a huge impact. And in particular these days with the internet and social media leading us to constantly compare ourselves to our network (and our instafamous influencers) it’s easy to get caught up in the herd mentality. But when it comes to money this often leads to real trouble.  

The Wrap

Money can be spent in your today or saved to set up your financial future. Or both. Getting the balance right will give you freedom, security, and confidence, but it’s not easy. Do your future self a favour and take the financial steps today to create the tomorrow you really want to live.

Ben Nash is a financial adviser and founder of Pivot Wealth, and the Author of the Amazon Best Selling Money Guide, Get Unstuck.

Image Credit: Timur Romanov

Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it, and where appropriate, seek professional advice from a finance professional (perhaps one with a glorious beard).

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