10 Basic Rules For Money Management
Money management is important to your financial well being. Here are 10 basic rules to help you get your finances into shape.
1. Plan your finances. Plan for your families future, any major purchases you require to make & for the periodic expenses that come up ever so often such as birthdays & holidays.
2. Make long term & short term financial goals. This includes everyone in the relatives. Helping children learn the benefit of setting financial goals will help them in the future. By learning to manage money, your children will be better in their own financial situations.
3. Know your financial situation. You should know what your monthly & periodic expenses are each month. You should know what your monthly income is & keep track of your amount of debt.
5. Trying going without your credit cards & learn to live on your income only. Even try paying over the minimum payment amount on your credit card balances.
4. Develop a budget & stick to it. Do a planning budget & then compare it to your actual budget to see what you have actually spent. Learning to stay within your planning budget will help you develop better financial situations.
6. Save money for a rainy day. Put away some money each month. Literally pay yourself a small amount each month so that you are putting away some money for various things. By trying to put away 5% to 10% of your money each month, you will have a reserve fund that will help with most emergencies. Having a reserve fund of 6 months to 1 years worth of living expenses will help you keep from ever having a complete financial breakdown.
7. Keep up on your bills. By paying your bills on time & in full, you will begin to build a good credit history. good credit becomes such a necessary thing these days & by protecting yourself you will keep your expenses such as interest rates & fees down. This will help your financial situation greatly. If for any reason you are unable to pay a bill on time, contact your creditor & work out an arrangement. Do Credit Repair on any inaccurate information on your Credit Report.
8. Know the difference between your needs & your wants. You must make your needs a priority & get those things on your require list when everything on your needs list has been met. Getting things on your require list is great but without taking care of your needs first, you are generating problems to your financial situation.
9. Control your credit. Don't let your credit control you. If you use your credit wisely, you can make good use of your credit & help your credit score. Your credit payments should never exceed over 20% of your net income. By knowing that figure than you can use your credit wisely to help you purchase things that you can not pay for to begin with. Automobiles & Homes are generally things that you should put into those categories, but you can even use it for recreational items such as Vacations, hobbies & other activities. never ever use your credit to pay for another credit item. For example, never use six credit card to make a payment on another credit card. you are paying interest one times & just throwing money away.
These suggestions are meant to help you determine where you can generate opportunities for a better financial situation for you & your relatives. By following this advice you will find yourself in a stronger financial situation & teach your children how to better handle their finances.
10. Know your daily expenditures. If you are aware of where your money is going, then you can control where you money goes for the future. A spending diary will help you keep track of that information. one times you know where they money is going better control can be made where necessary. You may not realize that you're spending $20 a day on a sandwich & coffee because you feel that you're spending a couple bucks here & a couple of bucks there. But they add up & seeing the total each day of where your money is being spent will often open up your eyes to where money can be saved.
Dont Mistake on your Financial Planning
When it comes to our personal life plus money, they all have make mistakes. &, surely there are more mistakes to be made. But here are some mistakes that you must become aware of plus begin avoiding if you're to generate the tomorrow you need.
A life without purpose is a languid, drifting thing; every day they ought to review our purpose, saying to ourselves: This day let me make a sound beginning, for what they have hitherto done is naught! - Thomas A. Kempis
Then look at all your insurance needs, life, health, disability, home plus auto plus make sure you've the protection you require. plus if you've query, be sure to get a profession who understands insurance plus can answer you questions.
Procrastinating. It's so much easier not to deal with serious issues like death plus retirement. Unfortunately, they're a part of life. So start today thinking about how your death will affect those you love plus if the effect is not what you wish then change it to what you'd like. Look of how you will be affected by your retirement plus if you don't like the result change them!
Spending more than you earn. If you require to be Stress Free plus enjoy your life, you've to spend less than you earn. If you continue to live above your means, you'll always be in debt plus you'll always be stressed about the fact that you're in debt. Debt make us all slaves so don't let that be you. So set up a budget plus begin sticking to it.
Not saving . they hear it all the time, Bahamian do not save plus most of us have less than $1,000.00 in our bank. That's not going to get us too far, since for retirement most of us will require anywhere from 85 to 100 percent of the annual income they were earning on the last day they worked. So start saving a portion of every paycheck you get. The worst thing that can happen is, you'll end up with too much money at a time in your life when you'll have the time to enjoy it.
Overusing your credit cards. If you can afford to pay off your credit card in full at the end of the month, no matter how much you charge, then use that card as much as you like. Unfortunately, most of us can't afford to do that. plus so, month after month, they continue to pay the maximum payment plus so doing outrageous sums of interest. If you're in debt up to your ears (other than mortgage debt), you'll seldom get ahead financially. So pay off all your debt as quickly as possible.
Looking for the big kill by buying "numbers". Yes, it's possible you can win plus collect more than money to live in style. But if I were you I wouldn't count on it. Look at how lots of persons around you that you know have been playing "numbers" for most of their lives plus still haven gotten that big pay day. The only persons winning are the owners of the number houses. If they had only saved plus invest their money, I am sure that their returns now would far outweigh their winnings. So keep your money for you!
So look at yourself today plus begin to understand those things that have created your current circumstance plus decide to change your tomorrow by not making the same mistakes. Remembering that "Regret for the things they did can be tempered by time; it is regret for the things they did not do that is inconsolable."
Don't chase "hot" investments You should not count on picking a winning stock plus put all your eggs in that basket. Look at what has happened with the performance of a number of sure winners. Remember that stock prices will rise plus fall plus that you should be investing for the long-term. What you require to do is find undeveloped land plus and invest in them after you've thoroughly done your home work. While past performance is no guarantee, when it come to land there is not query because land has continue to return better than 25%.
A life without purpose is a languid, drifting thing; every day they ought to review our purpose, saying to ourselves: This day let me make a sound beginning, for what they have hitherto done is naught! - Thomas A. Kempis
Then look at all your insurance needs, life, health, disability, home plus auto plus make sure you've the protection you require. plus if you've query, be sure to get a profession who understands insurance plus can answer you questions.
Procrastinating. It's so much easier not to deal with serious issues like death plus retirement. Unfortunately, they're a part of life. So start today thinking about how your death will affect those you love plus if the effect is not what you wish then change it to what you'd like. Look of how you will be affected by your retirement plus if you don't like the result change them!
Spending more than you earn. If you require to be Stress Free plus enjoy your life, you've to spend less than you earn. If you continue to live above your means, you'll always be in debt plus you'll always be stressed about the fact that you're in debt. Debt make us all slaves so don't let that be you. So set up a budget plus begin sticking to it.
Not saving . they hear it all the time, Bahamian do not save plus most of us have less than $1,000.00 in our bank. That's not going to get us too far, since for retirement most of us will require anywhere from 85 to 100 percent of the annual income they were earning on the last day they worked. So start saving a portion of every paycheck you get. The worst thing that can happen is, you'll end up with too much money at a time in your life when you'll have the time to enjoy it.
Overusing your credit cards. If you can afford to pay off your credit card in full at the end of the month, no matter how much you charge, then use that card as much as you like. Unfortunately, most of us can't afford to do that. plus so, month after month, they continue to pay the maximum payment plus so doing outrageous sums of interest. If you're in debt up to your ears (other than mortgage debt), you'll seldom get ahead financially. So pay off all your debt as quickly as possible.
Looking for the big kill by buying "numbers". Yes, it's possible you can win plus collect more than money to live in style. But if I were you I wouldn't count on it. Look at how lots of persons around you that you know have been playing "numbers" for most of their lives plus still haven gotten that big pay day. The only persons winning are the owners of the number houses. If they had only saved plus invest their money, I am sure that their returns now would far outweigh their winnings. So keep your money for you!
So look at yourself today plus begin to understand those things that have created your current circumstance plus decide to change your tomorrow by not making the same mistakes. Remembering that "Regret for the things they did can be tempered by time; it is regret for the things they did not do that is inconsolable."
Don't chase "hot" investments You should not count on picking a winning stock plus put all your eggs in that basket. Look at what has happened with the performance of a number of sure winners. Remember that stock prices will rise plus fall plus that you should be investing for the long-term. What you require to do is find undeveloped land plus and invest in them after you've thoroughly done your home work. While past performance is no guarantee, when it come to land there is not query because land has continue to return better than 25%.
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