Simple Financial Tips

Spend less than you earn. Regardless of how much or how little you’re paid, the reality is, you’ll never reach financial nirvana if you spend more than you earn. You need to learn how to spend less than what you earn. Add this with a little money-saving measures, a little effort will go a long way and yield considerable savings. Remember, saving does not mean that you have to make big sacrifices. In fact, as you progress and develop financial well-being, you’ll see how rewarding it can be!

Follow a budget. Budgeting is very important in planning the road to financial stability. It is very basic to create budget but yet, it’s so important when it comes to dealing with money. If you don’t budget, you’ll never know where you money is going toward and where you can save. Budgeting can help you set spending and saving goals. A budget is applicable and important for any and every income!

Plan for the future. If you fail to plan, you plan to fail. This is why it is SO crucial to plan for your retirement. You want to secure enough funds for your retirement so that you can live comfortably and not have to worry about money during the older ages of your life. As you already know, social security benefits will not be enough to give you the kind of financial peace and mind that you want. If your employer offers a 401(k) plan, you should contribute and take advantage of it. If your employer doesn’t offer a retirement plan, consider an IRA or a Roth IRA.

Invest. If you’re already making contributions to both a retirement plan and a savings account and still have money left to invest, you should do so! Don’t be afraid to get started. It’s not as difficult as you might think. There are many ways to invest your money: bank accounts, money market funds, bonds, stocks, real estate, collectibles, options and futures. However, in order to invest your money wisely, you need know enough about each avenue to weight the risk and the return offered by each option.

Account for your money. People who know where their money goes will spend far less and save more. Keep a little notebook with you to record your small cash purchases.

Live below your means. Saving even just 10% of your income each month can build a healthy nest egg to put towards retirement, travel, education or an emergency fund.

Pay off your credit cards. By paying off the accumulated balance on time every month, you maintain a good credit rating while avoiding costly interest. If you are carrying a hefty balance on any credit card accounts, make it top priority to get these paid off before worrying about any savings plan.

Financial Planning Help

Budgeting: First Step in Planning Your Own Finances

What is Personal Financial Planning?

Personal financial planning is typically made up of three core activities:

  • Controlling your daily financial-related issues
  • Designing, choosing and following a road toward long-term financial goals (e.g. buying a home, retiring with a comfortable lifestyle)
  • Establishing a financial safety net in case of emergencies

By learning how to budget and having a budget, you will be able to accomplish the first step – to control you day-to-day financial matters.

Setting Up a Budget

In order to be able to set up a budget, you need to keep track of every penny you spend for one month. Yes, every penny, every cent! Without keeping DETAILED records, you will never know where your money goes. When you put all your records together, you will be surprised and possibly even disgusted by how much some of your “innocent” expenditures add up to. It’s both eye opening and mind-boggling as to how much our small habits and spending costs over time!

By budgeting, we can track these small, innocent expenses that we often don’t even think about. It’ll begin to give you a sense of where you money goes on a daily basis and by having a better understanding of the expenses you make and accumulate, you will be better able at reaching your financial goals. In fact, financial matters are one of the leading reasons for martial problems and divorce. By getting a head-start on understanding your spending, planning, executing a budget, and saving for the future, you can have far-reaching benefits in the relationships you have with your spouse or life partner.

Why Budget?

In order to control your financial affairs that occur day-in-day-out, you will need a budget. Many people associate bad things with budgeting, such as financial handcuffs. On the contrary, the truth is, having a budget is necessary if you want to one day achieve financial success and security. No matter how small or how big your income is, a budget is still applicable and very important! It will help you to put your money to work for you, rather than have it the other way around – when your money controls you and you forever see yourself coming out short of your financial goals and needs.