If you are worried that at some point in the future you won’t have enough to live on you are not alone. Many people share the same fear that social security is going to run out and they won’t have the money to retire when they are older because they won’t have an income. Perhaps you agree or are worried that medical bills will be so high you won’t be able to retire at all. Whatever worries you have, you can avoid stressing about your future by investing today.
1. Create a Plan
If you are stressing about your future, don’t wait to do something about it. Take a little time to explore your investment options and come up with a plan. Even if you feel like you don’t have time, which is an excuse many of us use, whatever time you do take will reward you greatly with a more secure future. Investing now, rather than waiting, will allow you more leisure time in the future to enjoy what you like to do. But it doesn’t have to be hard. You can keep things simple and still invest for your future. Invest in a 401K plan through work. Invest in real estate or let a robo-advisor help. There are plenty of different options that can help you invest for the future and reduce the stress you may be feeling.
2. Reduce Debt & Save
When you are worried about your future, one thing you can do to help is reduce your debt and save. You don’t have to have a ton of money in order to make money for the future. Look for things you can cut out of your budget and use the money to invest. Pay off as much debt as you can. You need to make changes, reduce debt, and save money in order to reach your investment goals. It doesn’t matter if you are young or even middle aged, just start now.
Do you fear that you will lose money? Or instead, maybe you are afraid you will tie up your money and not be able to get to it. These are valid fears, but by not investing you are already losing money. In addition, if you are concerned that you will tie your money up and not be able to get to it, put some in an interest bearing savings account. Then divide your investment money into high risk, medium risk, and lower risk investments. The key is to diversify your money and your investments. This will help you to alleviate your fears because you have less of a possibility of losing everything when you spread your money out a little.
Lots of people make excuses rather than doing something to change their future. The truth is usually that they would rather do other things. However, if you really want to avoid stressing about your future, take some time to plan and invest today.
What steps would you take to help you avoid stressing about your future by investing?
Kayla is a personal finance blogger in her mid-20s who loves to write about money topics of all kinds.