Regardless of age, it’s wise to think ahead and have a plan in place in terms of your financial goals. You may consider it to be something that can wait, but the reality is, the sooner you have a long term financial strategy, the more likely you are to reap the benefits in later life.
Here are 3 ways to help you achieve financial freedom and personal finance success.
Prioritize paying off your mortgage
Although a typical mortgage term is 25 years, many people have mortgages for a lot longer. This is due to upsizing and remortgaging, taking additional borrowing, or having the borrowing term extended. It’s actually quite common for homeowners to be repaying their mortgage until their late 50’s or early 60’s.
If you can, it’s a good idea to pay off your mortgage early. You could save thousands in interest, and it will have a hugely positive impact on your financial goals. Even if you can’t afford to make large capital repayments, paying a little extra each month can still make a difference. Another way to pay it off early is to reduce the term of your mortgage. Your premiums will, of course, increase, but if you can afford it month to month, it’s worth investigating.
Make long term investments
If you get it right, making long-term income-generating investments could reap some hefty rewards. Perhaps you want to consider buying an additional property and leasing it out, or, providing you know what you are doing, investing in stocks and shares may be a good option. Many companies will even give you extra stock when you make an initial investment. To find out how to get free stocks, take to the internet, and you will find lots of useful information, as well as links to current offers.
If you prefer to go down the lower risk option, locking your money away in a fixed-term account will usually warrant a higher interest rate than a typical instant access savings account. Funds up to $250,000 are usually covered by the FDIC, giving you further peace of mind that your savings will be safe even if the financial institution runs into problems.
Pay off your credit card debt
Although most of us have an outstanding balance on our credit cards at one time or another, if you have multiple cards and an abundance of debt, then it’s time to take control. Not only will clearing debt set you up for a brighter financial future, but it will also be a weight off your mind.
Look to paying off cards with the highest balance first and then take it from there. Another great option is to apply for a credit card with 0% APR that allows balance transfers and consolidate your balances onto one card. Not only will it be easier to manage, but you could save hundreds or even thousands in interest depending on how much debt you have. Be sure to check what the APR will be when the 0% offer ends, or you could get a nasty surprise further down the line.
Disclaimer: This content does not necessarily represent the views of IWB.