NEW YORK, March 10, 2023 (Newswire.com) - Aflac: 2022 was a rough year for a lot of people financially, especially with inflation and rising interest rates. However, the new year is all about change, and by taking the right steps, you could change the trajectory of your net worth. To help get you started, here are five great ways to significantly improve your financial security in 2023.
Boost your retirement contributions
Retirement accounts like your 401(k) or IRA are great ways to build long-term sustainable wealth. These types of accounts enable you to invest for tax-deferred growth, which can cause your portfolio to multiply several times over. Plus, if you work for a company that makes employer-matching contributions, that can make your account balance even bigger. Every opportunity that you can, increase the amount that you're contributing to your retirement accounts. Higher contributions help you accumulate more savings over time.
Diversify your investments
Diversification is the key to financial security when it comes to investing. No one should ever leave the future of their nest egg in the hands of just a few companies. Instead, a better approach is to invest across multiple assets so that you'll have exposure to the broader market.
A good way to do this is through what's called asset allocation. Asset allocation is an investment strategy where you assemble a portfolio made up of cash, bonds, stocks, and alternative assets (such as real estate or gold). This will help to hedge your portfolio from losses while also optimizing it for the best growth potential.
Build other income streams
Having a job is a great way to produce income, but it's certainly not the only way. Many people have improved their financial well-being by building more than one stream of income outside of their regular employment. A few common examples include:
Dividend payments from stocks
Rent income from investment properties
Revenue from small business interests
Adding other income streams can significantly increase your wealth while also providing you with protection, especially if you were ever faced with a financial emergency or potential job loss.
Explore your life insurance options
Having a good life insurance policy is an absolute must for the financial security of your family. If you pass away, life insurance could provide your family with multiple years' worth of income as if you were still living. Talk with a licensed insurance agent about what life insurance options they have to offer, and choose the one that strikes the right balance between fitting your needs and affordability.
Raise your credit score
You never know when you might need to utilize a line of credit or apply for a loan. That's why it's always a good idea to have the highest credit score possible. A great way to do this is by practicing good financial management. Use tips like:
Putting your bills on auto-pay
Never using more than 30 percent of your total available credit
Keeping the number of credit inquiries to a minimum
The more you maintain these good habits, the higher your score will climb.
The bottom line
Make 2023 the year to improve your financial security. Start by increasing your retirement contributions, diversifying your portfolio, and boosting your income with other streams of income. Also, protect yourself by exploring your life insurance options and maintaining a great credit score just in case you ever need financing.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac insurance coverage is underwritten by Aflac. In New York, coverage is underwritten by Aflac New York.Contact Information:
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Original Source: Aflac: How to Improve Your Financial Security in 2023