It is a phrase that hardly gets the juices flowing, but most settled families would agree that becoming financially secure is one of the top things on their list of priorities.
Unfortunately, like anything related to finances, it is easier said than done. Sure, you can work and work to try and raise your salary, and hope that you can pay off the mortgage a little quicker. However, there are a few more factors to consider, and today’s post will look at three areas that are often forgotten about in the quest to become financially secure in the long-term:
Planning For All of The Minor Details
The first topic is going to discuss points that a lot of families do not ever consider — mainly due to the morbid nature.
Planning your funeral is hardly something you want to think about, but when you consider the cost repercussions for your family it might be something that should be pushed higher on your priorities list. In short, paying in advance can bring the cost down by thousands (due to the lack of inflation), so it is an easy way to save money for the long-term.
Then, there is the cost of elderly care. This is something that you cannot pay for in advance, but there is nothing stopping you from building it into your forecasts for the future. In other words, elderly care is expensive yet very regularly needed, thus make sure it is considered as you make your long-term financial plans.
Your Pension Options
The worst thing about pensions is that it differs in every region of the world. Not only that, but the options will probably differ depending on the year you were born as well, as different governments like to change the rules every now and again.
Most people will always be entitled to a pension, whether it is from the state or the company they worked for. Without going into the fine details (and spanning a dissertation-length post), the main message is to make sure you know how much you are cashing in on. Armed with this knowledge, you can at least know the most likely age you can retire, and what steps you can take if you decide to retire a little earlier.
The Bank Of Mom And Dad
Mainly due to the economic climate, something else that has become increasingly common over the years is relying on the bank of mom and dad. In other words, parents are becoming the first-stop for children, as they bid to get on the housing ladder.
Firstly, there is no legal requirement that means you have to fall into this category! The point we are trying to make is that most children need a step up when it comes to these expensive purchases and if you are going to fall into the group who do provide this funding, it needs to be built into your long-term plans as well. Some of you might decide to use your lump-sum pension fund, but of course doing this means you need another area of finance for your day-to-day living as you get older.
