Life After Money: Tips For Your Finances And Wellbeing

Life after money

If you've gotten to the point where you've, paid off your pressing debts and met all your savings and investment goals, kudos to you. This is a great problem to have, and life after money is fabulous!

Well done on creating the financial habits that have gotten you to this point where you are now financially independent! So, you've paid off your debts, bulked up your emergency fund, and your retirement nest egg is well on its way. What next? Let's discuss!

Your finances are smooth sailing, so what comes with life after money?

Here are a few tips if you are at the point where things are great with your finances, and you are trying to figure out your next steps.

1. Check-in with your investments regularly and rebalance your portfolio

First things first, you want to make sure that you are checking in and rebalancing your portfolio at least once a year. Some things to ask yourself during your financial plan check-in could include:

  • Are your retirement plans still on track based on your current investments?
  • Has your risk tolerance as an investor changed?
  • What current risks are involved with your investment right now?
  • How much of your portfolio is in cash in the event of an economic decline?

You may also want to schedule time with an investment advisor that has your best interests in mind i.e., a fiduciary, for a conversation on how your investments are doing overall.

Knowing how your portfolio is balanced, your investment allocations, fees, etc., are all very important when it comes to your peace of mind with your finances. Life after money is a goal we all have, but you want to be sure you stay financially successful by keeping up with your investments.

2. Diversify outside of traditional stock market investing

Investing in the stock market is the most common way people invest; however if you already have a ton of money in stocks and funds, why not consider something else?

If you are comfortable and are willing to spend some time doing some research, you might want to consider investing some of your money in other avenues. For instance, real estate investing can be quite lucrative and a great addition to your income source. There are multiple ways to invest in real estate, such as:

  • Rental properties
  • Flipping houses
  • Real estate investment trusts
  • Real estate crowdfunding

Another option is to invest in a small business either as an owner or as an investor. When it comes to business some people chose to invest as silent partners.

A silent partner provides capital but is not involved in the day to day operations of the business. Basically, you invest your money and collect income if the business is profitable.

Again, the keyword here is research. Like with investing in the stock market, you should plan to invest for the long-term. The research you do will help you determine how viable an investment is and if it makes sense for your overall long-term financial plan.

Remember, it’s always a good idea to have multiple streams of income to ensure financial stability, even if you are in a good place financially.

3. Have a plan for taxes

Many people tend to forget that when you earn money from your investments, you will be liable for taxes. So in your investment plans, you should also have a plan for any tax payments on your profitable investments based on what you expect your tax bracket to be at the time.

Why does tax planning matter? Well, your investment profits can be impacted by your tax obligation. And this can be a large chunk!

This, in turn, can impact your overall financial plans. And so it's essential that you understand what your capital gains tax rate is. You may be enjoying your life after money, but you’re still responsible for paying taxes.

4. Think bigger than just you

Some people get caught up in their life after money and forget those that are still struggling financially. Maybe you can help your loved ones with some living expenses to help them get back on their feet. Have you thought about your children's education? How about caring for aging parents? What about giving back to the community and helping others? If you plan to do these, these are all things that will need to be built into your long-term financial plan.

If you are on the other side of pursuing your financial goals, now is a great time to determine how you want to allocate funds to these different things.

5. Have your estate plan in place

For some people, it’s hard to think about crafting an estate plan. Of course, everyone wants to enjoy their life after money and not think about what will happen once they're gone, but unfortunately, it’s a necessary step in your financial planning. By planning your estate, you can help take care of your family and streamline the process of distributing your assets.

Otherwise, your estate will go into probate, which allows the courts to decide how your assets will be distributed and can be a lengthy process. This can also help prevent families from feuding over who gets what assets from your estate.

6. Live a little, enjoy your life after reaching financial independence

Life is short and is not all about money. Yes, your financial wellbeing is important but there's more to life. Now that things are running smoothly with your finances do some fun stuff.

Take those trips you've always wanted to. Have you always wanted to visit the Grand Canyon or take a trip to Tahiti? It’s finally time to start checking off your travel bucket list!

Have you embraced having more time to try a new hobby or do more things you enjoy doing? What is something you’ve always wanted to do or learn but didn’t have the money or time to do it? How about spending more time with family and friends?

Enjoy the life that you've been working so hard to create—you deserve it!

Enjoy your life after money

You should be proud you have reached financial success and can enjoy your life after money. Remember, you still want to stay on top of your finances to ensure you continue with financial stability.

By regularly checking your investment portfolio, diversifying your income sources, and planning for taxes, you can prevent money mishaps and continue being financially successful. Don’t forget to treat yourself once in a while and enjoy your financial freedom!

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