We all have handled money at least a few times in our lives. Some of us can organize money better than the rest of us. How do we catch up with the ones who manage money better?
10 Ways to Organize Your Personal Finances:
1. Expenditure has to be Lesser Than Earnings:
Track your income and spending. See your savings and investments (that are made and have to be made). Create a budget. Ensure you spend less than you earn. [Get Personalized Advice For Savings and Investment –Visit]
2. Save More, Spend Less:
Delay gratification. Before wanting to purchase anything, stop and ask yourself if you “need” it. Wait for a couple of hours and see if you still want it. There is a contrast between “need” and “want”.
3. Clear Debt and Pay Bills on Time:
Don’t keep debt pending. Ensure you clear debt quickly. When your monthly bills arrive, ensure you pay them off immediately. Delaying or forgetting it will be costly as you will be required to pay a hefty fine.
4. Keep “No Spending” Days Weekly or Monthly:
The title is self-explanatory. For a set period of days in a week or in a month, don’t spend money for useless items that you don’t need such as the fancy car or fancy handbag to keep up with the Joneses. Rather invest that unspent money.
5. Past Performance Doesn’t Guarantee Future Results:
Past performance of any fund doesn’t affect the future performance or results of the fund. In the past it might have done well and may not do well in future. Similarly it might have done badly in the past but might do great in future. [Get Personalized Advice For Mutual Funds –Visit]
6. Begin Your Emergency Savings:
Life is a mystery. You never know what comes next. Some people try predicting the future, and are sometimes right! However, isn’t it good for you to be on your guard? Keep an emergency fund for emergency uses. It has to contain 6 to 12 months of your total monthly income. [Get Personalized Advice For Debt Funds –Visit]
7. Begin Your Retirement Savings:
As you are growing old day by day, a day will come when you will stop receiving pay cheques and salary notifications. At that time, you will need funds to spend the rest of your life. You can’t depend on your spouse (who will also be old), other relatives and friends as they would be old and even your kids who will be young and independent and perhaps living away from you. Your retirement fund could be a Public Provident Fund, Employee Provident Fund, and Equity Linked Savings Scheme, National Pension Scheme or even 401(K). Keep investing.
8. If you live in a first world country, don’t rely solely on Social Security:
Social Security won’t take of your needs for long. It won’t take care of every need of yours too. You need extra income. Save for yourself for retirement years instead of being a parasite on social security. You might live longer than expected and find out that no more benefits will be offered by Social Security. [Get Personalized Advice For Retirement Planning –Visit]
9. Insurance is an Absolute Necessity:
All kinds of insurance has to be bought. Term insurance, health insurance, travel insurance, car insurance and so on. Get your parents, spouse and children insured too! In case of emergency, an insurance will be there for you.
10. Online presence has to be verified again and again
Verify your privacy settings on Face book, Instagram and so on. The whole web surfing world can access your social media activity. This includes your current and future employers too! Don’t lose out on job prospects because of an inappropriate picture of yours on social media. Untag yourself from inappropriate posts.
For more information visit www.moneymindz.com or give a missed call to 022 6211 6588