There is nothing more satisfying than being able to say the three words— ‘we made it’. In life, this requires not only perseverance and persistence, but detailed planning too. While the foundations of such planning are based around semantics, financial pragmatics play a bigger role.
In order to ensure a stable future in the busy state of California, you need to possess a sound sense of financial planning. Sure, while you might not have to know what it takes to be a billionaire, there are a few basic tips to keep in mind. These are some of the financial choices that will ensure the smooth sailing of your future.
- A 9-to-5 is Underrated
Being in California, you cannot underestimate the idea of a stable job. For the said folks, your options are pretty manifold. While anesthesiologists, psychiatrists, and other medical personnel turn out to be the creme de la creme so to state, the jobs in California are pretty decently paying.
As the saying goes, try not to be a philosopher before you become rich, or at least financially stable. A 9-to-5 job is criminally underrated—irrespective of your other financial ventures, that job is there to stay.
A traditional career will not only ensure a stable sense of influx of money along said intervals of time, but also ensure that you have a cushion to rely on, if things don’t get going. Just listen to us and don’t quit that job just yet.
2. Appreciating Assets are Appreciable
Once you are making that stable influx of money, you will ideally want to use it elsewhere. Maybe a limited-edition watch? Perhaps indulge in some obscure pinot noir? Maybe get a vacation of a lifetime?
You can choose to do the aforementioned things if you want your ship to do anything but sail smoothly. Ideally, once you start generating capital, always scout for appreciating assets. Your supercar can wait, or it can at least be paid off by the money you make with your appreciating assets.
One of the most significant appreciating assets that you can look for are houses. Not only will they act like a safe haven for you, but if you have more than you can spare—you could also generate passive income.
When it comes to houses in California, you are in for a massive show. The prices and fares of houses in California are a lot more than other states. This might be both a boon and a bane for you. For instance, if the average house starts at about $440,000, you will have to ensure that there is enough in the bag when you go forth into this venture. Yes, luckily that is the bane.
The boon is that after you have purchased the residence that you would want to rent out, ensure to protect it by all means. Your home investment needs to be protected either by insurances, maintenance services, and of course, legal boundaries. Not only will you generate money out of it, but it will be in your safe hands too.
Renting the said houses in a place like California can be massively beneficial, as it ensures a steady and constant sense of passive income. Not only that, but if you look at the ideal numbers, the ‘passive’ would seem like a heavenly digit.
3. Insurance Comes in All Shapes and Sizes
While you are generating capital and purchasing assets, you will also need some sense of protection. In this regard, know that insurance will be your utmost ally. Irrespective of whether you are living in the skyscrapers of California, or the serene condos of NYC, you will need some sense of protection—in this case, renters insurance for apartments or houses in California.
Insurance comes in a variety of flavours, and depending on what you want, you shall get. If you are planning on placing out your residence and make sure in case of loss or theft, there is some sense of accountability—you ought to look for renter’s insurance. If you are planning on covering medical bills in the proverbial senescence of your life—look no further than life insurance.
The point is—you absolutely have to ensure that your assets are as well-protective, as efficiently as you make money.
4. Investing is Key
Now that you have generated some wealth and protected it too, there is only one thing left to be done—you need to let it grow.
As you might know, with inflation stranding upon us all throughout, it makes little sense to keep your money stagnant. After all, it will not hold the same value as it did when you initially got it.
In California, you have a greater window of opportunity to invest than in most other places in the world. Not only are housing markets increasing in value, but more so with a rapid rate. It is therefore important for you to invest as quickly as possible— especially in places like Douglas City or Salton City.
Your other ventures of investing can be SIPs, index funds and so on. There is no doubt about the real estate paradise in California, but that itself is a major investment. In case you don’t possess that capital, start small.
As long as you understand that investing is key, you should sail smoothly in exorbitant territories, especially in a place like California.
Now that you are aware of what it takes to ensure good and stable financial planning, all you need is to put in some effort to strive for the same. Despite living in a highly demanding state like Cali, you should sail smoothly if you manage to follow the aforementioned tips. In time, you will finally be able to say, as stated before—‘we made it’.