Preparing for your financial future should be one of your priorities because you can’t expect to be young, healthy, and active all the time. You probably had realized the importance of securing your finances when you reached a significant milestone in your life, such as owning a new car, building a new home, sending your child to college, or opening a small business.

So, how do you secure your financial future? Here are the steps.

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1. Put Everything in Writing

The first step you must do is write down your short-term and long-term financial goals. This step is crucial because it’s your basis for the actionable steps you need to do to realize your financial capabilities fully. It’s making an idea or dream one step closer to reality, reminding you that you have to do small steps to achieve financial success.

Here’s how you should write a financial future diary:

• Make three columns in a notebook or your spreadsheet.
• The first column is designated for your Short-Term Goals, the second for your Long-Term Goals, and the third for the Target Date.
• Write your goals on the appropriate column and indicate a target date to achieve a specific goal.
• Set one page for your Actionable Steps and designate an area for Successful and Failure.
  For instance, you want to buy a new smartphone by the end of the month. Put this goal under the Short-Term
• Goals section and input March 31, 2019, as the Target Date. The Actionable Steps may include saving $20 a day by reducing your budget on treats and eating in fancy restaurants. By the end of March, put a check mark on Successful or an X mark on Failure, depending on your result.

Note: Check your Financial Future Diary regularly to keep it up-to-date. By doing so, you’ll develop a routine that will also help you in budgeting.

2. Track Your Expenses

After setting your target goals, you have to determine where your money is being spent. Start securing your future by having a good plan, so you need to track all your expenses. It will help you create a budget, identify bad spending habits, and manage your finances effectively.

Make sure to also track your source of income, including your day job, social security benefits, and disability benefits. There are requirements for receiving your benefits, so you need to ensure full compliance to obtain them. Tracking all financial sources is critical to budgeting.

Here are some ways to track expenses effectively:

• Set a special section and write down your expenses on your Financial Future Diary.
• Use online tools, such as Mint and BudgetTracker.
• Use an oversized calendar hung or installed in an easy-to-see spot at home, so you’re reminded to review and update it regularly.
• Download a budget tracker app, organizer, or note pad in your smartphone if you prefer doing things with your mobile device.

3. Identify Your Needs and Wants

After tracking your expenses, it’s time to identify your needs and wants. This step is critical because you have to make sure that you prioritize your needs first, such as food, child’s education, medicine, and mortgage, before your wants, such as new clothes or a grand vacation.

4. Start Saving

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It’s now or never. Start saving today. Don’t be like a one-day millionaire on payday and end up a poor chicken tomorrow. In waste management, there are 3Rs, namely, Reduce, Reuse, and Recycle. But this concept also applies to financial management.

Here’s how:

• Reduce Your Expenses: Focus on your necessities and avoid making excuses for not saving even in just one day. To save money, DIY and be creative instead of hiring someone else to do a job.
• Reuse Things: You won’t die not shopping for a new watch, shoes, or clothes for a week or a month. Also, you don’t need a new bag or new hairstyle to attend a party. In short, reuse old stuff and avoid impulse buying. If you need to buy one, make sure it’s of high quality so you can use it for many years to come and you can save money from repairs or replacements.
• Recycle Things: Hold a garage sale to earn some money from things you no longer use. Buy high-quality items from thrift or second-hand stores to save some cash.

5. Secure a Retirement Plan

You’ll come up to the point that you need to retire from years of hard work because of old age or a medical condition. If you want a comfortable retirement without regret, secure a retirement plan as early as now. By the time you retire, you’ll have a peace of mind and comfortably sit back and relax while watching your grandchildren play.

Conclusion

Everybody wants to attain financial security. However, not everyone is ready to commit to the actionable steps required to achieve this goal. It’s not too late to start planning and saving. Start today and make it a routine of checking your financial goals and doing the necessary steps to attain them.

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