Short term or long term, one always should plan and design and strategy for the future. In terms of money, long term planning means planning for your retirement. There are a number of points to consider in order to ensuring financial stability.
Start saving today –the sooner, the better- but understand inflation and interest rates, as those will affect the money you save. Compound interest would make your money grow and inflation will gobble a portion of your returns. Your investments might feel the bite of taxes besides.
Consider carefully the amount of debt you will be able to support once you retire… better, pay it off now; later it will be a greater burden. Choose a pension plan, if you have not already done so, open an IRA or similar account, there are several options. Take advantage of any employer’s plans matching in part or in whole employee’s contributions.
If you are afraid that your future pension will not be enough to support your life-style, increase your inversions or find creative ways to make some extra. Start a part-time business from your home, for instance, it can be a source of extra funds now, and insurance when you retire, as you would be able to work for yourself.
A part-time business means start up funds, then where to find the money? Some of the ideas are similar as the ones used to save money for big purchases, however, there are, in this case, some specific sources. Check first SBA loans and SBA resources –Small Business Administration in USA, still there is probably a similar organization in every country. If nothing comes out, one can always resort to a personal loan.
There is no doubt that careful planning alleviates the stress of carrying out difficult tasks. Indeed, knowing what is to come takes much of the fear, and when one starts planning and taking action early enough, the financial future cannot be anything but bright.