You've started to build a life
for your and your family
How do you grow from here?
Once you’ve become an Established Earner, you’ve experienced some of the best life has to offer. You’ve also found grounding, both in mind and in finance. You may have more responsibilities now. At work, you’ve progressed in your career. If you have children, you’re watching them grow.
Your life is fundamentally different now, in many ways for the better. You’re still young, you’re smarter than you ever were before, and you have a much larger income than you did. And with more income comes greater freedom, financially.
That freedom comes with responsibility. You must manage multiple priorities (ensuring the bills are paid, providing for your children, saving for retirement). If you can do that effectively, now is the time to see what your extra capital can accomplish for you. Here are some tips to help you make smart financial decisions, so you can reach your goals.
Getting the most out of your investments
Whether or not you may have traded a few stocks earlier in life, now it’s time to really see what the market can bring you. Wise wealth management means a better future life for you and your loved ones.
Understanding stocks, bonds, unit trusts, and other investments, as well as where you should invest, boils downs to your individual tolerance for risk. You need to decide if you’re looking for a light risk situation or if you want to be more aggressive. The best way to determine this is by weighing your current financial status against your short, medium, and long-term financial goals.
A licensed financial advisor can help you make the right calls to watch your money soar in the stock market.
Finding a secondary source of income
It never hurts to have secondary sources of income. It can mean meeting your own dreams of retiring a few years early, or maybe helping your children afford the education of their dreams.
What are some good ways to bring in some extra income?
Renting a second home: Buying another home and renting it out is like starting your own business. You need to run it and maintain it, but it can bring you a steady stream of revenue, as long as you take care of it. You can explore doing short-term rentals, where you rent for a month or less, rather than those that extend to a year and beyond. Short-term rentals tend to be more profitable, if you have regular bookings.
Working on the side: If you have a profitable skill or hobby, why not use it to make a little extra money? If you can fix cars, bake, sew, or create handicrafts, you can easily create a secondary stream of income. An extra few hours here and there can really pay off in the long-run.
Analyzing your expenses: While not technically an extra source of income, many people find that if they take a good hard look at their expenses, they can eliminate small costs that don’t impact their quality of life, but saves them money every month. At the end of the day, money saved is money earned.
The Long Game: Children’s Education and Retirement
Your retirement and your children’s tertiary education; one may sound like heaven and the other...might not sound as pleasant. However, these two things are realities for the Established Earners.
This doesn’t mean that you have to devote your entire pay cheque to these two endeavors, but ensuring that you are contributing an adequate amount to both accounts will be transformational for your future.
If you’re interested, please read our section on retirement.