Planning for the future: Changing your way of thinking

In the whirlwind of modern-day life, it can be difficult to even start to think about the future. Unfortunately, in the interests of financial security, it's an absolute must for any savvy person.

One of the big obstacles for a lot of people is simply their way of thinking. For many, thinking about next week is hard enough - let alone making plans for twenty years’ time.

Bearing the above in mind, the following will look at some useful ways of thinking which might change your approach about planning for the future.

Quit thinking about saving - it's all about planning

Nowadays, there's a huge emphasis on saving - and in some ways this is perfectly normal. After all, if you're strict about saving, you will be well on your way to financial stability.

However, several interesting studies have been conducted which have shown that people who plan are wealthier than people than save. When we talk about planning, it's anything from paying your student loan off in 'x' years, to covering your funeral costs with a prepaid plan.

It's all about goal setting, which we will now come onto in slightly more detail.

Short term goals will aid your long term aim

In truth, this next suggestion could apply to plenty of walks of life, but it's particularly relevant when it comes to financial planning.

Long-term goals are incredibly difficult to pull off, and it takes a certain type of person to successfully carry them out. Shorter ones meanwhile, are much more measurable. To resort to the same examples, covering a funeral plan or paying off a loan are obvious examples.

In simple terms; don't think about becoming a millionaire by the time you are 60, think about how you can tackle the smaller processes to get there.

Be aware of as much financial literature as possible

Like a lot of industries, the financial one can change immensely over time. The landscape when you are 20 is certainly going to be a lot different to by the time you near retirement, and you need to stay up-to-date to take advantage of the relevant opportunities.

By becoming financially literate, you can be well on your way to achieving this. Again, several studies have shown the importance of financial literacy, and how those people who have knowledge of this area are wealthier than those that don't. Simply reading about the latest trends and investment advice can suffice - and also help you avoid any pitfalls that might be presented to you in the future.

Grab free money with both hands

This final suggestion might sound blatantly obvious, but it's surprising how few people take advantage. When we talk about free money, it's all about the likes of company pension plans and tax saving investment accounts. At first, the benefits might appear to be small, but over decades they will add up considerably and help to cement your financial future when your regular income does cease.


Pete White Pete White

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