Recession has done me a lot of good. What? You don't believe me? Well, you will, once I tell you why. Due to recession I have learned how important it is to save money for the future. Recession has taught me to be frugal, to avoid spending money on things that I do not really need. In fact, recession has taught me things about managing finance which my parents, teachers and friends together were not able to do in so many years. I am so happy the way my personal finances are right now that I plan to continue managing my finances the same way, even after this recession is over. Here are some very useful tips, that anybody can make use of, to take care of his finances in a better way.
How to Manage Your Personal Finances
Make a Budget
One of the most important tips for college students, working professionals or even housewives is to make a monthly budget, which clearly mentions the spending you are going to make on different items during this month as well as your earnings from various sources. You can list your spending under various headings such as food, bills, entertainment, interest on loans, etc. Preparing a budget in the beginning of the month is a good way to ensure that you do not overspend. Stick to the budget, no matter what. And if you have over spent in one category, compensate it by reducing the amount assigned to the other one.
Save and Invest
Saving for a rainy day is very important, as the recession has already taught us now. So many people in America have lost their jobs as well as their homes because they were unable to pay for their loans. Thus, saving a small percentage from one's income every month is very important. What I have started doing is that as soon as I get my pay check, I get 10% of my salary deducted and deposited in a savings account straight away, and pay for my bills and other things with the remaining amount. You can follow the same policy i.e save 10% or 5% of your salary, every month and perhaps start investing in a retirement fund.
Pay Debts and Loans
In order to manage your personal finance, it is very important that you pay your credit card debts or interest on loans on time. The more you delay them, the more they will cost you by way of added interest. So one of the most effective personal loans tips is to pay them at stipulated timings.
Earn More
Start earning more. I know it is near to impossible in today's grim scenario. What you can at least do is to survey the market, and see what professionals who are in the same job and position as you are, and with the same experience, are earning. This way you will be sure that you are getting your due in the organization you are currently working in. If you feel that you are being paid less and you deserve more, ask for a raise.
Managing your personal finances does not end just with your present finances, especially if you have dependents. In such a scenario, it is very essential that you invest in a life insurance policy too. Also, writing a will, so that your loved ones do not face any problems later in life, is also very important.
0 komentar:
Posting Komentar