Finance is an extremely important factor to consider for your future. You cannot control the uncertainties of your life but, you can always control the finance that helps you to deal with those uncertain situations. A new year is a great time to start taking the command of finance in your hands and plan over your yearly savings and investments.
Every small saving can add up to something big in the future. Therefore, start your finance management as early as you can. If you are willing to get some inspiration or tips to start, you are on the right page. Read this article to find some useful tips to improve your financial health this year.
1. Clear the Debts: Debts are something that doesn’t let you sleep properly. Hence, the golden rule is to clear them as soon as you can. Make sure you are paying off your credit card debts on time. According to the National Foundation for Credit Counseling, credit card interest rates will be higher. Also, the recession is expected in near future. Therefore, if you don’t want to end up with high-interest rates credit card bills, make a habit of spending money only up to what you can pay off by its billing date.
2. Have a Budget of Everything: Budgeting can help you control you cash-flow more wisely. People with family budgets are more capable of handling financial challenges that people with no family budgets. Try making a budget for your monthly expenses and manage your bills accurately without failing any payments.
Being prepared for the future is more helpful than keeping things at risk. Also, make sure you are keeping track of your everyday expenses and follow your budget strictly. Always look for the opportunity to save money like coupons and sales. There are many sites that provide amazing coupons and deals to its customers, for example, Coupon box. Such websites give you an opportunity to save money on shopping at almost every online retailer.
3. Opt for Better Investments: Good investments are like icing on the cake. The better you invest, the sweeter the future fruits become. The stock market is volatile hence there may be ups and downs but, if you are planning a long term investment, you are sure to make good returns from there.
Also, you can invest in properties or other trending savings where a good return is assured. Keeping your money in banks does add much value to it but, a good investment plan surely does. Therefore, choose some good options and invest some share in such schemes to increase your savings.
4. Save More for the Future: Investments are good but, you will need some assured finance back-up for your later years. A good retirement fund is like a lifesaver. Therefore, it good to start saving for retirement funds early. You can either pick government plans or private group plans which help you to get maximum money saved for your retirement life.
The IRS has raised the annual contribution limits on employer-sponsored retirement plans and Individual Retirement Accounts (IRAs) by $500 in 2019. Isn’t that good news? Now, employees older than 50 years can get an additional $6,000 catch-up contribution.
5. Have a Separate Emergency Funds: You never know what the future holds. However, staying alert is the best thing to do. Therefore, have a separate emergency fund which will help you during difficult days of your life. Having at least six months of the budget in your emergency fund is advisable.
Hence, make sure you have a target for 2019 and set an auto transfer of a certain amount to your emergency funds monthly. This way you will be able to achieve your goals without even putting additional effort. Also, you will be saved from any debts situations in the future.
6. Always Pay Bills on Time: Paying your bills on time is extremely important. You cannot let yourself suffer from the penalty charges which are sometimes too high. Also, late bill payments affect your credit score. Even a single miss of payment can cost you more than 100 points in your credit score. Therefore, if you planning to apply for a loan in near future, it is good to pay your bills on time. Else you might risk your creditability.
7. Never Take Financial Decision in Rush: Finance decision should be taken with utmost care and planning. Many times a few long term investments are being disturbed temporary but, that does not mean that you have to panic and break that investment or trade it with anything lesser. Investing in stock market is pure calculation and matter of luck. You have to be patient enough for your long term investments and doesn’t let influence by fickle market decision. Moreover, your finance should be handled with a calm mind and future sights. Analyze the situation would be after a few years and, then you will be able to take the right decision for your investment or savings.
Obeying these tips in your regular life will help you plan your money more wisely than ever. You can have a secure future and flourishing present both together by planning your finances appropriately. Grab every money saving opportunity and, add more and more to your saving budget as every penny saved, is a penny earned. Being frugal at times is going to help you save money for the future. With an increase in the inflation rate, it is important to stay prepared for the unexpected future situation.
As per a study, every four American out of ten are not able to cover an emergency expense of $400. From this study, it is apparent that very few people take their finance situations seriously or plan in advance. Therefore, be more aware of your financial situation. Also, make your family understand the importance of financial goals so that they support you to meet your goals and become financially stable. So, did you find these tips useful? Do let us know your opinion on the same.