There are really very few of us that can handle finances really well. We all have to make financial decisions every day, and some of us are better with our money. Simply put, not everybody knows how to earn and manage money efficiently for maximum benefits. Today, it is very easy to find financial advice. There are sites that will give you expert financial advice to increase your earnings, and also improve your financial health.
Since it’s the time of year when we show our appreciations for things that we were blessed with, let’s look into some sound financial advice that I have come across over the years. These are some pieces of expert advice from financial professionals and experts. I am really thankful for them and I am sure that you will be too.
Top financial advice to be thankful for
We’ve all heard financial advice from our mother and father, friends, or other family members, as well from experts. Some of the financial advice that we hear is basic and fundamental, some is complicated, and some requires a little knowledge and understanding of finances, such as credit cards, monthly expenses, mortgages, interest rates, banking and so on. Below is some financial advice that anyone can benefit from.
1. Live within your means
The old saying “cut your coat according to your cloth” is a priceless one when it comes to financial advice. This might be very common financial advice that many of us hear from time to time. Living the lifestyle that you can afford might be one piece of advice that resembles very closely to this old saying, and one of the most valuable financial tips that you will ever hear. If you go and spend too much beyond your means, you are sure to find yourself in financial difficulties soon.
Have you ever been in a situation when you start spending more because you just got a raise? You might even have bought a large TV and bought a bigger car as soon as you heard that you got promoted, right? Well, most people tend to start spending more as soon as they know that their income is increasing. This could be a dangerous habit if you are not careful.
If you go beyond your means, you could soon find yourself getting buried deep in debt, and struggling with bills. Sarah Bal, a writer at the SmarterBucks Blog thinks that living below your means is even a better financial move.
Most importantly, controlling your impulses from spending big on eating out, an expensive wardrobe, and on entertainment and recreation could help you achieve bigger things in life. Some such examples are a fixed deposit account, a life insurance plan that allows you to save money, an emergency fund, a retirement plan or the ability to pay off all your debts early.
2. Save for emergencies
It cannot be stressed enough that saving is one of the most important elements for our financial health.
Nicole Mastromonica wrote that her father convinced her to save a portion of her paycheck ever since she started working. She got her first job at the age of 14 and only made slightly more than the minimum wage. She followed her dad’s advice and got into the habit of saving regularly, consistently and increasing the amount of money she saved with every paycheck she got. The bigger her paychecks got, the more she started to save. Soon she had three different bank accounts. One was her regular savings account, one was her emergency fund and one was for her fun expenses, so she could do whatever she wanted with that money.
It’s important to have an emergency account separate from your regular fun account because that way you keep some money aside and you do it just the same way you spend your money on anything else. You can use your emergency fund for real emergencies such as your car broke down unexpectedly or you have an emergency health issue.
You will find more things to do with your fun money if you save and let your money accumulate over time. If possible, you should plan a trip to Vegas or a dream vacation at least once a year.
3. Always look for better options
You don’t need to compromise with the value of the dollar. You earn your income for your hard work, and so, you deserve top quality products for your dollars. Remember that there are always better deals available for the goods or service that you want and you just have to look harder for it. Never settle for poor quality and higher price. When you are purchasing something, always ask yourself “Is this the best I can get for the money I am paying?” You will almost definitely find a better alternative for that good or service for a better price.
When you purchase something, find out enough about it. Compare several similar items and compare prices. Find the best deal that you can get for your money and you will be able to stretch your money a lot further. No matter what you buy, always compare prices, find a good deal, and buy in bulk without wasting any of the stuff that you buy. Look for deals on the internet and newspapers. Find online coupons and money saving offers; they are everywhere. Just spend some time on collecting coupons and information and you will be able to make an educated purchase.
4. Pay your debts off quickly
Paying off your debts fast is very good advice. When your pay off your debts faster, paying extra amounts whenever you can, in addition to your minimum requirement can help you save a significant amount of money in interests as well as help you to build a stronger credit history.
Paying off your debts won’t happen overnight, but you could surely shorten the time and save a significant amount of money on interest payments. You will be amazed how relieved you will feel when you finally become debt free. You will be able to put away more money towards your investments, emergency funds and retirement if you pay off your major bills quicker than usual.
You could apply some of the techniques to consolidate all your major bills to pay them off faster, more easily. First, transfer your higher interest loans to your lower interest loan sources. Pay off the credit card bills that charge you more interest with the ones at a lower interest. Try refinancing your home, automobile, or college loan through one low interest source. Also, pay more than your monthly minimum payment and make more frequent payments. You will be able to find better consolidation options and financing terms online.
5. Plan for your retirement early
You can plan a better way to retire and do more fun things after your retirement if you have followed all the financial advice given above, at least a few of them. If you start saving early for your retirement, it will have higher returns, and you will enjoy your money more. No matter what your age is, a healthy retirement plan is always something that you need to keep in mind.
Wells Fargo financial expert Elizabeth Aaron says that if you are making good money and “enjoying extra income now, you should invest enough money to enjoy it later as well.” The more ways you save money, the more you are likely to have saved at retirement. Invest in as many different types of money making ventures such as stocks, bonds and money market. Learn enough about investing and money management from an early stage. These tools will boost your financial health and ensure a trouble-free retirement.
Make saving your top priority; put money away from your income to fund your savings and retirement plans first, before you spend on anything else. Always check your goals and make sure that you are saving enough money. Your retirement provider probably offers a simple saving calculator that you can use to determine whether you’re on the right track.
I am thankful for all the people who have contributed to my financial knowledge and motivated me to write this article. I hope you will find it helpful in your financial path and hope that it helps you to achieve your financial goal quicker.
Got advice that you’d like to share with others? We’d love to hear from you, so please share your advice with us or post a comment below and let us know your thoughts on this article.
Source: Balanced Life Team.