Your Finance Future is Living One Day At a Time
Dear Friend,Congratulations on making your wise decision in investing in this manual! You definitely know that the best person on the planet to take care of your personal finances is none other than yourself!We’ve all been told to take things one day at a time, and this is of course the best way to live.
Unfortunately, many people think that the ‘one day at a time’ theory includes their financial standing and future – and it doesn’t.When it comes to money, you really can’t take things one day at a time. You must look ahead to the future, and set financial goals, and then create a plan to reach those goals.
Once that is done, you start meeting those goals – one day and one step at a time. Don’t make the mistake of thinking that you will ‘cross that bridge when you get to it.’ When it comes to money, you simply cannot do that,
or you will find that you will never reach your goals. You must look ahead and see where those bridges are, and start working out how you will cross them long before you get to them!When you finish your education and go to work, you must look ahead to when you will marry.
When you marry, you must look ahead to when you will buy a home and have children. You must look ahead to your child’s education and their
wedding, and you must look ahead to your own retirement – even if it is fifty years away!
All of this takes money, and it is money that you need to start gathering right away…not on the day that you need it. In order to plan your financial future successfully, you really must make a basic plan for your life.
That plan will most definitely change over the years, but the main parts won’t change. For instance, the chances are very good that you will marry and have children.You will almost definitely reach a point where you want to purchase a home.
If you have children, they will absolutely need to be educated, and will most likely marry. You will definitely want or need to retire at some point. Those things are not likely to change in your life’s plan.
So, think ahead through the coming years of your life, and make a financial plan that will help you obtain your goals. The rest of life, with all of it’s up and down scan then be taken in stride – one day at a time.Within the coming pages, I’ll show you quick & easy steps on handling your personal finances – in layman terms, of course.
While some ideas and facts can vary from state to state (country to country), the concepts and ground rules of handling your personal finances are still the same.All the best in stretching in every dollar you have
The 6 Quick Ways to Take Control Of Your Finance
Use Common Sense In as simple as it sounds, financial planning is really just a matter of using common sense.
For instance, why would you pay $20.00 when you could pay$10.00 for the same item or results?It’s no more than a guess that you work very hard to earn your money – so you need to make sure that your money is working hard for you in return.
That’s one.Money, when it is all said and done, is a means to an end. You work to make money; you take that money and use it to make sure that you have a place to live, a car to drive, food to eat, and clothes to wear.
And with luck, you take that money to enjoy some of the finer things in life. Many people believe that money is made to spend, and in a sense, that is validly true,and you will spend it – but not necessarily today.If you are young, it is hard to imagine that you will reach a point in life when you can no longer work for your income.
It may be a long way off, but that time will come, and you must be prepared for it. You cannot expect to start saving for retirement the year before you will need to retire!
The sooner you start saving and investing for your retirement, the better your retirement years will be – and that should be a major goal for everyone!
When you retire, you will start spending the money that you’ve worked all of your life to earn and save. With luck and planning, there will even be some or plenty left over to give your grandchildren or great grandchildren a good financial start.
Just because you make a lot of money, you don’t have to spend a lot of money.We would all like to live rich and famous lifestyles, but it isn’t very realistic.Common sense is best when it comes to money, so again, why would you pay more for something that you can have for less? If you are using common sense,you wouldn’t!If you don’t have to spend your money, don’t.
It really is as simple as that.Instead, put that money to work for you, and have it make more money for you and your future.
Look For Savings
When it comes to your money, it is very important that you look for ways to save it wherever you can.
In fact, even if you consider yourself financially well-off, yous hould still make it a habit to save money when you can. This is a great way to stay in good financial shape, and also a great way to get into great financial shape if you aren’t quite there yet.Start with your household bills, such as utilities.
Turn lights off, cut down on long distance calls, and use less water. If you make a concentrated effort, and really pay attention to your monthly bills, you will see a big difference in costs.
Make a list of all the ways that you can reduce your utility payments and house hold costs.Use coupons, and take advantage of sales. If you need new bedroom furniture,don’t just rush out and buy it. Instead, look for liquidation sales, over stock sales,or furniture stores that are going out of business. You will find remarkable Personal
savings in this way. Use store coupons whenever you can. It takes a little time to clip them, but those small savings of a few cents here and there can really add up.
Make lifestyle changes that will make your healthier and richer. If you use tobacco or drink, think about how much money you spend on those habits.
You must also include health care expenses that are related to those habits.If you look at the big picture, you will find that your unhealthy habits cost a lot more than you realize! Break those habits and you will not only become healthier,your bank balance will be healthier as well.
Don’t always buy the cheaper brand or version – it may cost you more money in the long run! Sometimes, buying off-brand items is a real savings especially when it comes to food items.But sometimes, cheaper things mean lower quality.
This can mean replacing items more often, which in the long run costs more money than just buying a higher quality item in the first place.If you make a list of things that you commonly spend money on, and if you really think about it, you will find numerous ways to save money.
Take those savings,and put them in a savings account, and you will be pleasantly surprised at how fast that balance grows!Note: I know the idea of saving can be severely criticized by big time moneymakers but the truth is that saving your money is as important as making money.
It’s a shame some 5-figure income earners often don’t bring those 5 figures home at the end of the month due to horrible financial planning.
While savings is not the end of the problem (in fact, just the beginning), it’s a quick defense strategy you can implement almost instantly in contrast to making Personal money, which can take some time depending on the nature of your job or business.
Take Importance in Emergency Funds
Life throws things at us when we least expect it. It may be an illness, a car accident, or even a lay-off from a job. Whatever it is that life throws, you can bet it is going to cost you money.This is why you need an emergency fund.
Everyone should have at least three to six months of living expenses in a savings account that is reasonably easy to get to
.Saving up the money for your emergency funds is easier than you might expect.It all goes along with ‘Pay Yourself First.’Set a budget and determine how much you can put into a savings account.
Until you have reached your savings goal of having three to six months of expenses in your savings account, save every extra dime that you can lay your hands on –even if this means not going out to a nice dinner or seeing a movie.
Getting your emergency funds saved should be your utmost priority.Once you have your emergency funds saved, preferably in an interest bearing pass book savings account, make sure that you leave it alone.
Remember, it is only for emergencies. Needing to buy a new dress for a date is not an emergency. Needing to pay for car repairs, however, is an emergency.
Really think long and hard before using your emergency funds!When you must use your emergency funds, make sure that you replace those
funds as quickly as possible. This probably means that you will have to really tighten your belt, and forgo the dinners and movies again – for a while. But when you have an emergency, you will be thankful that you did save the funds, and you will realize just how important doing so really was.Your emergency savings should not be invested.
Again, it needs to be readily accessible, in a savings account. It is also a good idea to have a debit card for that savings account, in the event that your emergency occurs outside of banking hours.
However, use caution, and put that debit card away – don’t use it unless there is an emergency!And that reminds me…
Control Your Credit Card Usage Credit
is great! You can walk into a store and buy expensive clothes or gadgets,whip out your card, sign your name, and walk out without spending any money!What could be better then, thirty days later, the bill comes in the mail.
As time goes on, the balance of that bill gets bigger and bigger – even though you are making the minimum monthly payments!Before you know it, you owe thousands of dollars, your minimum monthly payment has risen to an unmanageable amount, and the credit card company is calling you daily about paying your bill. Your credit just became a nightmare.
Credit card companies work to make sure that you stay in debt. It is as simple as that. As long as you are in debt to them, they are making money – and the more debt you have, the more money they make.
They are not on your side. Sure, they made it easy to buy that new living room furniture. You have that fancy exercise equipment…and they helped you get it.But now, they want you to pay for it, with interest.In spite of this, How Crypto Arbitrage Works
everyone needs one major credit card for a few good reasons.First, having a credit card and making your payments on time helps you establish credit. This way, when you go to buy your first home or automobile, you won’t have any problems getting financed.
The second reason you need a credit card is for emergencies. If your hot water heater bursts, not only will it need to be replaced immediately, you may also need to replace some carpeting.
If you don’t have the cash to take care of this emergency, a credit card will come in handy. Of course, the final reason you need a credit card is because everyone has one…no, not really…but we do live in a credit oriented world.
You need a major credit card to rent cars, buy airline tickets, and reserve hotel rooms.Using credit cards for these things is okay, but only ‘reserve’ with the card, and then pay cash. How To Get Free Data On Airtel
For instance, use the credit card to reserve the hotel room, but pay cash when you check out, instead of having the hotel charge your credit card. Learn to keep your credit cards under control.
Use them to fill up your car with gasoline once a month, and then pay off the balance right away when the bill comes. This will keep your card active, help you establish credit, and at the same time, keep you out of debt!
Take Your Financial Planner Seriously
There are professionals who help individuals like you plan their financial futures.They are called Financial Planners, and you may need one! A financial planner can help you set and reach all of your financial goals – for your entire life.
When it comes to money, most of us are emotionally attached to it.However, a financial planner is much more objective and can help to guide us in the right direction. It’s like having a guardian angel.First, a financial planner will help you create a financial statement to see where you currently stand. Then, they will help you set up a budget.
Believe it or not,most of us really do need someone objective to tell us how, where, and when wes hould spend our money. Those who use financial planners often do better financially than those who do not use financial planners.
Before setting up a budget, the financial planner should discuss your goals with you. Do you want to purchase a house? When? Do you plan to have children?When? Do you want your children to attend college? What age do you want tore tire?
All of these decisions have a financial impact on your life, and they must be planned for in advance.With your financial goals in mind, the financial planner will work with you to set up a budget that you can live with.
That budget will incorporate your financial goals.The financial planner can also advise you on investing your money to reach all of your financial goals, within the time limits that you have set.
When choosing a financial planner, look for one that has the proper degree an dcredentials. They should be a Certified Financial Planner (CFP), and have several years of experience. Ask about their continuing education…
you want a planner that keeps up with the changing times. Talk with the financial planner before hiring them, and make sure that you feel like they are putting your best interests ahead of their own interests.
Warning! Avoid financial planners that try to sell you financial products because they are in fact, just insurance sales people
Know what is on Your Credit Report
Imagine that you have gone to apply for a home mortgage loan, and you are told that you were denied – because your credit wasn’t good enough.
Not knowing what is on your credit report ahead of time is a mistake that many first-time home buyers tend to make.It is important that you know what is on your credit report, and you should get a copy of your report at least once each year – even if you don’t intend to apply for any loans.
The first reason for needing to know what is on your report is to ensure that everything on it is right. The fact is that out of ten people, at least five will find errors on their credit report.Those errors can keep you from getting loans or credit cards.
They could even keep you from qualifying for some jobs! When there is an error on your report,you need to call the reporting agency and the creditor to clear up the problem as soon as possible.
Pulling your credit report is also a good way to know if you have been the victim of identity theft. Some errors may not be errors at all… they may be proof that someone else is using your information! Again, contact the reporting agency,
the creditor, and if necessary, the police.If you do have negative items on your credit report that are not errors, it is in your best interest to take care of those matters as quickly as possible. In many cases,you can call the creditor and work out terms with them, or negotiate a lower cost
for clearing up the debt. Most creditors will work with you is they see that you are making a genuine effort to clear up the matter.Don’t make the mistake of not having anything at all on your credit report. You want items on there, and you want them all to be good. Many would be lenders actually view some bad credit as being better than no credit at all! It’s difficult to get credit when you have no past credit.
This is easily rectified by applying for and getting a major credit card, and making the payments on time.If you have the cash to buy a vehicle out right, you are actually better off – from a credit standpoint – to finance the vehicle, and then pay it off early, after about a year. This will show positive credit on your report.
The Art of Budgeting
A carpenter uses a set of house plans to build a house. If he didn’t the bath room might get overlooked altogether. Rocket scientists would never begin construction on a new booster rocket without a detailed set of design specifications.
Yet most of us go blindly out into the world without an inkling of an idea about finances and without any plan at all. Not very smart of us, is it?A money plan is called a budget and it is crucial to get us to our desired financial goals.
Without a plan we will drift without direction and end up marooned on adistant financial reef.If you have a spouse or a significant other, you should make this budget together. Sit down and figure out what your joint financial goals are…long termand short term.
Then plan your route to get to those goals. Every journey begins with one step and the first step to attaining your goals is to make a realistic budget that both of you can live with.A budget should never be a financial starvation diet. That won’t work for the long haul.
Make reasonable allocations for food, clothing, shelter, utilities and insurance and set aside a reasonable amount for entertainment and the occasional luxury item. Savings should always come first before any spending.
Even a small amount saved will help you reach your long term and short term financial goals. You can find many budget forms on the Internet. Just use anysearch engine you choose and type in “free budget forms”. You’ll get lots of hits.
Print one out and work on it with your spouse or significant other. Both of you willneed to be happy with the final result and feel like it’s something you can stick to.
Budgeting – It Can’t Get Anymore Important!
No matter how much money you have, or how much money you don’t have, you must have a budget. If you find that you don’t have much money, a budget can actually help you save more money.
A budget will also help you become more aware of how much money you are unnecessarily spending each month. Your budget can be very simple, or very detailed. People with a larger in cometend to have more detailed budgets, but people with modest incomes will usually do well with a simplified budget.
Your budget can be typed in a document on your computer, written out on paper,or set up in a money management program on your computer. Whatever works best for you and your situation should be used. Don’t make it harder than it has to be.
Starter tips: start by making a list of your income. Include all income that you know will be coming in, including income tax refunds and cash gifts that you know you will receive from Grandma at Christmas.Some income will have to be estimated, and this is fine. How To Install Windows 11 Free Download
After you know what is coming in, make a list of what is going out. Start with the basics.
Of course you know that you will pay utility bills, insurance premiums, a mortgage or rent. If you have credit cards, you know that you will have payments to make on those.
Outstanding loans must also be paid. List all of your monthly bills, but don’t forget about those other expenses as well, such as groceries, gasoline, house hold items, and entertainment. Save these expenses for last,
so that you can see how much you have to allocate to each expense – and then live within those allocated amounts.At the top of your list, you should have one very important bill to pay…yourself. Pay yourself first!Determine how much you can afford to save each week, and then take that money out first and put it in an interest bearing savings account. Do these before you pay any other bill on your list!