As you grow older, your financial goals will begin to change and evolve according to your current needs as well as what you deem would be important in the long term. If your 20s were about making sure you adopt good habits with regards to how you handle your cash, your 30s and 40s are going to look a little different — retirement is imminent, your family will grow and have their own needs.
It’s never too early to start, and there will come a point in time when it will become progressively challenging if you don’t act as soon as you can.
Building and managing your wealth will consist of making sure you have plans to clear outstanding debts, as well as options to grow your finances. On the other hand, while you may have basic savings and retirement plans, perhaps it’s time to look into other future needs like estate planning and long-term medical coverage. Below are five ways to make sure you’re on your way to actively take control of your wealth and invest in it!
1. Pay off your debts
It’s common to accumulate car loans, mortgage, credit card debts and other similar debts. What truly matters is that you have a plan to start actively clearing them and putting that plan to work — adjusting your budgeting and spending habits can help you to allocate more money into reducing these debts and have less financial worries hanging over you in the future.
2. Investing outside of retirement accounts
So you might already have a retirement fund such as TAP, but it’s a good idea to start looking at other options to get solid returns for your money. Investment returns can accumulate over time as your money continues to grow. Your investment goals are dependent on how much you want to invest on a regular or one-time basis, and the amount of time you are willing to spend. A good start would be to look into StanChart Securities’ wealth products and services to decide which one is suitable for your income and financial goals.
3. Start a college fund for your kids
Once you’ve settled on how to exponentially grow your wealth, it’s time to learn how to manage it for the betterment of your future, and that of your family’s. This may include preparing for your children’s educational future. Whatever choice they make for their studies, it will not hurt to start setting aside some money for them. Plus, having this conversation with them can be a teachable moment about financial responsibility and how to manage your money wisely.
4. Set aside finance for your elderly parents’ needs
Have your parents made preparations for their estate plans and potential medical expenses? Do they have wills and health directives? Perhaps it’s time to have a talk and at the same time, share your own steps for taking care of your own future and getting your paperwork in order for estate planning and medical assistance in the long run.
5. Continue learning about financial management
There are plenty of other small, but meaningful steps you can take to ensure you are properly managing and growing your wealth aside from diversifying your investments and clearing debt. Living within your means while sticking to your budget and being aware of where you’re placing your money can go a long way in helping you to manage your finances better. Be open to learning about financial management by reading trusted articles, and when in doubt, talk to somebody who could help guide you, such as SCB’s certified advisers.
Building and maintaining your financial assets is not a linear process — be open to new strategies while staying aware of the pros and cons of the plans you may choose to carry out, such as investment accounts and learning new budgeting techniques. Make the right financial decisions early on to give your future self the best chance at a fulfilling, comfortable life.