5 Smart Financial Decisions To Make Today That Will Benefit You In 5 Years

 Alana Downer
  Aug 03, 2017

Never put off until tomorrow what you can do today. When it comes to making financial decisions, this phrase is never truer. The sooner you make important financial decisions and changes, the bigger the benefits you’re likely to see. Many people underestimate how a small change, in either saving or investment, for example, can build gains over a relatively short space of time. Putting off pressing issues only delays and diminishes the reward you’re likely to experience.

So what can you do to make your financial future look that bit brighter? Here are five smart financial decisions that you should make as soon as possible:

  1. Buy Property

House prices in Australia have risen year on year. So far the property market has been immune to the political and economic changes taking place across the world. Investing in property is an excellent way to see your money grow substantially as long as you’re in a good financial situation and able to commit to the mortgage payments required. Rather than spending your income on rent, it will go towards acquiring more equity in your home. Having your own space also means having the right to rent it out and make extra cash from a lodger or housemate.

  1. Get Life Insurance

Signing up for life insurance when you’re young, fit and healthy means your premiums will be much more affordable. If you’re a singleton, this probably isn’t something you need to worry about yet. However, as soon as you settle down with a partner and kids, you need to make sure that everyone will be financially secure if the worst should ever happen.

  1. Pay Down Debts

If you already own a house, paying off your mortgage even a few years earlier can shave thousands of dollars in interest off your overall payment. If your mortgage deal allows it, overpaying on your mortgage contributions is a good way to achieve this. Forgo one dinner out a month and pay an extra $50 towards your mortgage. Try to do the same with any other debts you currently pay interest on to free up your income for saving and investment further down the line.

  1. Save Money

Saving a little money every month can make a huge difference to your bank balance and your feeling of financial security. Small savings can soon mount up, particularly if you find an account with a good interest rate. Choose your account wisely, assess the amount of access you need to your money and think of your long term objective. Saving up for a house deposit, for the holiday of a lifetime or for your retirement will all require a different saving strategy.

  1. Invest Money

Investing in property is just one way to see your money grow. You could also invest in start-up companies or put your money into a crowdfunded project, particularly if you want to invest smaller amounts of money. Alternatively, learn to trade and you can develop the skills to invest your money in stocks and shares or even the foreign exchange market. Making extra cash by learning to put your money in the right place at the right time will be an invaluable asset throughout your life.

When it comes to your finances, you should always be looking a few steps ahead. The changes you make today can have a profound impact on your financial situation and your quality of life further down the line. Be smart, think about the future and five years from now, you could be a lot better off.

5 Smart Financial Decisions To Make Today That Will Benefit You In 5 Years

Alana Downer

Alana Downer is a finance expert and an experienced blogger from Sydney, Australia. As a blogger, Alana believes that her purpose is providing her readers with up-to-date info in the sphere of achieving financial independence. When not working, she often spends time reading self-improvement literature.

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