Always discuss things with your partner. Think about your spending and never do it on impulse.
Credit Card Rules
Don’t overspend on credit cards and pay off every statement in full when it comes in (there is a high rate of interest charged on balances
Look closely at mutual funds which should give a decent yet risk-free return.
Financial Secrets Or a Myth
People get bombarded by financial advice and it is sometimes difficult for the ordinary person to sift the good from the bad. Others think that they are unable to solve their financial problems because they can see no way to help themselves; they are too busy trying to pay their bills each month to stop and think. They would love to have more money, better future prospects and a comfortable retirement but it doesn’t appear possible. Some manage it, not because they necessarily have a huge income. So how do they do it?
Aiming at Retirement
Most would love to retire early. The typical family has a couple, often with the mother taking time out from working to look after the children as they grow and thus with a limited number of working years. Seemingly it would be difficult in those circumstances to retire comfortably, certainly early. If you are in doubt about what you should be doing a good financial adviser that you can discuss your circumstances which may well come up with ideas that you were unaware of, even if you read the personal finance press.
If you are lucky and have worked for the same company for a considerable time then your position may be stronger than you think. Certainly if you have a 401K that is a good start. In some instances long time workers may actually be offered a ‘buy out’ by an employer and that is certain worth consideration if you have led a fairly responsible financial life.
Responsible Personal Rules
What makes a responsible financial life?
• Common sense spending with minimal luxuries without sacrificing. If you want something and you haven’t the cash to buy it, save for it and get it when you can afford it. That is a golden rule that you should never break.
• Invest whenever you get a pay rise. If you don’t think you can afford to invest all of the pay rise because of everyday inflation, at least save some.
• Prepare an accurate budget detailing all your income and expenditure. Update the budget on a regular basis; you need to monitor everything which is not as onerous as you might think.
The latter is very important and if you have balances look at taking out a consolidation loan at a lower rate of interest than the credit card companies are charging. There are many online companies that require fairly minimal information in order to approve loans from installment lenders -justrightinstallmentloans.com . As long as you are in full time employment and can show regular income to justify the amount you are seeking you should be approved.
There are several aspects to sensible money management. Regular household expenditure including utilities, insurance and telephone is one thing. There is always scope to check whether you are overspending on any of these with several comparative websites there to help. Investment is a different skill and advisers may well be the best way to pursue those.
There is a temptation to try to keep up with neighbors and friends. There is only superficial and short term satisfaction in allowing this to determine your spending habits.
Those in their 20s may well have educational commitments to pay off; student loans are an essential feature in today’s life for anyone wanting to get a good college education. It should still be possible to save a little even then and by doing so you will certainly see the benefit.
Two things that should be in place are an emergency fund which a lot of Americans found they needed during the recession but too few had and retirement savings.
As you get older and the family comes along money may get tighter but saving a little should still be given priority. That expensive mortgage is not worth it as discussed above; something a little less ambitious is the way ahead.
What Is the Obvious Conclusion?
In summary there are not really any secrets. Most of the things you should do are common sense. You should never spend more than you earn and ideally you will put away a fixed percentage of your income each month for investment and retirement. If that comes out of your checking account when it hits the bank you should even forget that you have earned the amount deducted, and certainly never touch it.
There will always be financial pressures from time to time, temptation as well as possible emergencies. If you lay proper foundations then you should be able to such things secure in the knowledge that you have good financial decisions that will secure you a secure and happy future even well into retirement. More >>
“While real estate is an excellent medium to long term investment it is not if the mortgage costs are stifling. Everyone would like a nice house in the best part of town but if it is beyond your means lower your sights a little. You will still have the investment but you will have more scope with your expenditure; that doesn’t mean wasting anything.”