Thursday, January 26, 2017

GET SMART for YOUR FINANCE

Having a budget and watching your shopping habits is only the start of financial planning. You also need to identify how to make your money grow so that you will have financial security. With careful planning, your small investment today could well mean a comfortable pension that will allow you to go on a round-the-world cruise when your slogging days are over.

SET SHORT-TERM AND LONG-TERM GOALS.
Identifying what you want to accomplish ¡V owning a car, taking a vacation ¡V will motivate you to achieve it. Achieve your financial goals through disciplined savings and wise investments. Investing needs to be a priority, not an afterthought. Start with a small investment and watch it grow. Find out about different investment options available.


BECOME A CONSCIOUS SPENDER
Sit down and work out a monthly budget ¡V how much you earn, how much you save and how much for rent, water, electricity, food, transport, family obligations, leisure and entertainment, insurance, dental and medical care. A budget give you control over your money because it established beforehand where your money will go. Place priority on your needs, not your wants. If you have over committed, on your purchases, you may have to sacrifice on your short-term financial goals.


ELIMINATE LIABILITIES.
If you have debts, settle them fast. Make debt repayment a fixed expense in your monthly budget. Debts include your education loan payments and car payments.


ORGANIZE YOUR FINANCIAL AFFAIRS
When your fixed expenses are under control, your next step is to evaluate your personal spending. Do control your luxury spending so that you will have a healthy cash flow even if an emergency arises.


SAVE, SAVE, SAVE
Dedicate a percentage of your net income towards funding your goals. You can start with a 10% fixed saving and increase the rate when you get a raise. Make saving a priority. Consider insurance coverage that would help should anything happen to you. As your situation changes, so will your insurance needs.


BE FLEXIBLE
Your budget will change as your earning capacity grows and your income increases. Your long-term financial planning builds on your short-term financial plans. Modify your financial goals and budget to reflect your current financial condition. For example, if you plan to get married, then part of your budget will be devoted towards saving for this.


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