We all plan for our future, our education, our career path and even our next vacation trips are pre-determined. We try to control everything we can and hope for the best. But what happens when our plans fail?
The future is unpredictable. You can, however, run some basic checks and understand whether you are ready to face the unexpected or not.
#1. Are you prepared for the unpredictable?
Technological advancements and rapid expansion of industries has led to many job roles becoming redundant. Machines are likely to replace a lot of functions which are manual now.
Moreover, you may find yourself having a mid-life crisis, wherein you start to hate your job. You find it mundane and wish to try something new or take time off to travel.
Whatever happens to your professional life, you will still want to have the same or a better lifestyle in the future. Would you be able to solely depend upon your savings?
#2. Have you factored in the growth of your needs?
Let’s assume that you get a salary hike every year in your job at present. It serves all your needs and that of your dependants (if you have any). Take a moment here to ponder if you will need the same things 5 years from now.
For instance, did you need a digital wristband to measure your calorie intake, five years ago? Most likely not. New and innovative gadgets have a way of creating a need for themselves in your life.
And these innovations will only increase with time. Your child may require an iPad for elementary school, compulsorily, 10 years from now.
Do you think your current income can support these future needs which do not even exist at present?
#3. Can you afford your basic expenses 10 years from now?
You need to ask yourself if you are insulated against inflation. You might be under the impression that all your basic necessities can be taken care of by your salary.
Have you, however, ever wondered if these needs will be priced the same even after 5 years? Would an outing at PVR cinemas cost the same as it does today? A complete movie experience with family, with services at your seats, could easily cost you Rs. 3,500 or more. Do you think you are prepared to cope with such rapid inflation?
If the answer to any of these questions was “no”, then you must start thinking about alternate sources of income.
Though you have your present in control, the unpredictable future may bring unforeseen redundancies, which might render you poorer than you know.
This is why you need to plan ways to generate multiple incomes. One way is to invest. Investing is the only thing that will grow your money irrespective of how much time you can spare. The time to start is now.
If you want to be future ready, Scripbox can help you. Learn how.