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Managing Money Matters to be Financially Stable



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By: Gynn Flores

 

Managing MoneyThe quality of our life mainly depends on our finances. If we make good, we can afford the luxuries that money can buy like a nice house, a posh car, good education for our children and grand holidays. Oftentimes what we see is not really the real picture. There are many people who are living a grand lifestyle that are also suffering from a lot of financial burden. It will even cost them everything with just one wrong move. Do not let this happen to you. Living a simple life is more relaxing than chasing payment due dates. Be aware that financial stress can make you sick and can cost you not only your fortune but also your life. Apply the following tips to attain financial stability:

  1. Live within your means. Discipline yourself not to go on impulsive buying. Spend only for things that are necessary. Never use credit facilities for luxuries like going to an expensive holiday. That can cause you a major deficit spending. Interests on credits can eat up your savings and sometimes even your budget for the basic necessities. When this happens, resist the temptation to make some more credits – which will definitely lead you to bankruptcy.
  2. Save for the rainy days. Set aside a portion of your earnings for savings. 10% is very ideal.  Never touch this as much as possible as if the funds are good as spent. Secure your savings by depositing in a trusted bank with guaranteed insurance in case of calamities, going out of business and inflation.
  3. Maximize your potential to earn. Endeavour other options to earn but do not let your main source of income suffer.  An example would be an extra 4 hours part time job on top of your main job. Getting online jobs such as writing during your free time is an option – if you have the skill. This can be added to your savings or you can even spend it for some luxuries like dining out with your family or buying some signature items that will boost your confidence.

  4. Live a healthy and balanced life.Work is mandatory. However, never deprive yourself withenough rest and sleep to allow your body to rejuvenate and re-energize for the next working day. Pushing yourself to the limits can make you sick which in turn can make you miss your work. Remember that most diseases occur when the body is abused. Eat nutritious foods and nurture your body with healthy recreations like sports, exercise and other forms of socialization.
  5. Learn from the mistakes of others and listen to the advice of experienced people. Making the same mistakes as your colleagues is not a good mental indication.
  6. Maintain a good credit standing and a good reputation. This will allow you to avail of financial facilities when you need them for concrete businesses.  It is not bad to resort to personal loans and credits when you have a sound business plan that has good earning potentials.
  7. Choose your battles and avoid taking too much risk – especially on matters that you know nothing about. Aggressiveness can cost you everything and recovery period can take a whole lifetime.
  8. Do not put everything in one basket. If you have some extra money, do not invest everything in one project. Leave some for savings where you can always turn to when you fail.
  9. Make some sound investments in areas that you are knowledgeable of. Investments can make you earn extra or can make the value of your money increase in time. Examine each offer or opportunity well before signing the contract. Deal only with a reputable institution.
  10. Be ready for old age and impart to your children and life partner the lessons you learned in handling money. Reward yourself with a comfortable retirement plan so that your good life will serve an example to the younger generation. Being a role model is the best teacher for others.

The list can go on and on but following the given guidelines above can make your finances very stable. Crisis happens every now and then but being ready tocope at any time is the best security you can ever have. The grief and sufferings over sickness, loss of a loved one, calamities or fire are manageable when you are equipped with the essential resources to continue living despite the odds – and personal loans can make life difficult when you go overboard. Life is a transition so there is also no need to be paranoid about anything at all.

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Securing your Financial Future



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By: Gynn Flores

 

Financial FutureIt is not how much you earn but how much you keep that can secure your financial future. There are a lot of us who earn a lot but are still buried with debts like personal loans and payday advances making their take home pay very meager. Having many liabilities will make you incur interest expense which can make your take home pay much smaller. On the contrary, some people earn minimal amount only but are more financially stable as they are debt-free. Sometimes, rank and file employees are richer than managers in terms of liquidity.

Although it is not bad to avail of credit facilities for emergencies, they should not be used just to fund luxuries that are definitely not basic needs. We have to bear in mind that times are hard and incurring debts unnecessarily is not practical. We should prioritize securing our financial future than engaging in worldly things we can’t afford. There are several options on how to attain financial stability:

  • Save at least 20% of your monthly income. Set this aside in a separate bank account that you are not supposed to touch. Treat it as if it is money already spent and therefore no longer yours to spend.
  • Invest in the stock market. You can start small here contrary to what we perceive – that we should have a substantial amount before we can get started. This is meant to be a long-term investment – so do not expect to be able to pull out your money anytime. Putting your passive income for 20 years in this manner can even make you rich. In times of crisis, do not panic, in fact it is time to buy stocks from good companies while the prices are low.
  • Pay off loans that have high interest rates. This automatically gives you savings from paying big interest. Credit cards when left unpaid on due date will make you incur late payment charges and penalties in addition to finance charges. Manage credits well to avoid incurring additional expenses. Most of your payments should cover the principal amount and not just the interest and penalties. If you can afford it, paying in advance can also build-up your good financial status.

  • Buy a rent-to-own house- where the rentals you are paying now can be part of your monthly amortization. In some instances your rental expense is enough to pay the amortization. Instead of incurring an expense, it automatically becomes an investment.

When you have started on building up your wealth, you can’t help but experience a sense of hope and excitement. Gone are the insecurities and worries in your mind instead,you’ll feel like winning a battle in your life. It is therefore important that you take charge of your finances and don’t leave it to chance. Start now and change the entire direction of your financial future to make your dreams come true. Rather than touching your investments when the need arises, you can avail of personal loans but make sure that you prioritize on paying these on your next pay check.

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