The world of finance can seem intimidating and complex to someone who doesn’t know what to do. How are you supposed to save up enough to buy a house when you have just enough to cover your rent payment? What is a 401(k) and how much should you save for retirement? These are common questions that most people ask as they try to get their finances in order. You aren’t alone. Follow these five tips to get on the right track with your money.

1. Choose the right investment platform.

When most people think of investing they immediately think of financial advisors, stocks, bonds and mutual funds. In reality there are more divers investment options available. Look into using an accredited investor software like Yieldstreet, which gives investors  access to alternative investments that were traditionally reserved for the ultra wealthy. Things such as commercial real estate, residential real estate, art and more become available investment options.

2. Get life insurance at a young age.

In the same way that investing isn’t just for established adults with nest eggs and multiple homes, life insurance isn’t just for older people. In fact, if you want to save money on your policies, get a life insurance policy while you are young.

The older you are, the more of a risk you are to the life insurance policy company — meaning it is more likely that they will need to pay out the policy before it matures. Plus, you can rest easy knowing your spouse and kids will be cared for if something happens to you.

3. Diversify your portfolio.

Good investing means placing your money in different places. For example, if all of your money is in the stock market, you could lose most of it if there is a steep drop in the markets (like there was in March of 2020 because of COVID-19). However, if you have money in stocks, bonds, and real estate, you stand to lose less if one investment goes bad.

Consider researching investment properties if you want to grow your money in the long run. Today’s down payment could lead to profitable dividends in a few years.

4. Save a little bit every month.

One of the best habits you can get into is saving a little bit of money each month. You don’t have to save much but set aside at least $50 in a separate account that you can use when there is a rainy day. You may be able to set up a process with your bank to automatically transfer this money at the start of each month so you are never tempted to use it.

You never know when you will have an emergency car repair or an unexpected medical bill. These savings can help you when you need them.

5. Take steps to build up your credit.

Your credit score helps lenders understand how riskier you are to give a loan or mortgage. If you have low credit, you are high risk, as you are more likely to miss payments or default on the loan. Low credit scores mean paying higher interest rates — which makes acquiring money more expensive.

Take time to build up your credit. Pay your credit cards on time and use an established payment plan to work down your debt. Within a year, you might be surprised by how your credit improves.

Achieving financial stability and wellbeing takes time. You need to make a lot of small moves in the long run, rather than a big gamble in the short run. However, these investments can pay off when you need them.

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