3 Important Financial Decisions To Make In Your Lifetime - SOCIETE.me

3 Important Financial Decisions To Make In Your Lifetime

June 15, 2021

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Financial decisions are vital for securing your future. At some point, you’ll make crucial monetary commitments that will change your life’s course. For example, a  2019 survey indicated that first-time buyers made 50% of home purchases.

This proves that many people would love to purchase a home at some point in their lives. That said, here are three financial decisions you should make in your lifetime.

Deciding On An Insurance Package

According to research papers, insurance dates as far back as the 18th century with the Hammurabi code of laws. Another school of thought also believes that insurance may have started in 13th century Genoa.

Either way, insurance is a concept which offers people the needed buffer and protection from financial and property loss.

By taking risks, insurance companies provide cushioning when people encounter unforeseen circumstances. For instance, you’ll need insurance for several things such as your car, house, life, etc.

Fortunately, several establishments, such as One Sure Insurance, offer different packages for their customers. You may also visit their websites to find out what packages are suitable for your needs. 

Saving Towards Retirement

While some people believe that working hard will secure their retirement, it might not always be the case. Although hard work is essential, it is not a sure determinant of wealth, especially when you retire.

Admittedly, no one can predict how long they will live, but the logical thing is to prepare adequately for it. Fortunately, you can create the perfect and comfortable financial cushioning for your future years. 

For instance, you must make that deliberate decision to save monthly towards your retirement fund while you are still working. It’s prudent to start saving towards retirement in your twenties or thirties.

However, if you started later than expected (40 years or more), it’s best to live strictly by a budget as you save up for life after sixty years.

Monitoring Your Credit History 

A good credit score in the UK ranges from 881-96 and determines if you’re eligible to receive loans from any financial institution. Therefore, it’s prudent to monitor your credit history to avoid shortfalls or pitfalls that could be detrimental to your future financial decisions.

For example, you may need an auto loan at some point in your life, but it can be challenging to access it with a bad credit history.

Therefore, it’s best to repay all outstanding loans to get onto the right path and avoid higher interest rates with a low credit score.  Furthermore, you may keep an eye out for identity theft and other fraudulent activities that could affect your credit history.

The United Kingdom’s top fraud prevention service, CIFAS, reported that identity theft rose by 18% in 2019 and increased in 2020. Even worse, there are reasons to believe that 2021 will record higher rates.

Keep in mind that the resilient financial decision you take now can determine the quality of your future. Although this is not an exhaustive list, it’s a great start to making prudent financial decisions.

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