Financial institutions have identified eight important guidelines and tips for achieving financial success highlighting the importance of debt repayment and setting a tight budget, while taking concrete steps to save money, as well as borrowing wisely and setting goals for the retirement stage.

Here are the eight tips:

Debt repayment

Exhaustion of loan payments and related fees, the financial budget of individuals, and here the priorities for repayment must be determined, by preparing a list of debts and due installments and arranging them according to the interest rate and cost, and then repayment starting from loans with high cost, and so on until the last installment is paid, this helps to reduce Total cost of debt.

Monthly budget

The monthly budget is one of the successful means of arranging and tracking expenses, through which all aspects of spending are identified and divided into several items in order to facilitate their management, and then focus on basic expenses and stay away from purchasing what is not necessary, as it helps to lay down plans to pay debts, and find the means Appropriate to enhance financial savings.

Savings

An individual cannot achieve concrete steps to save money unless he relies on comparing income and expenses, and for this reason the budget enables him to know his financial situation and monitor expenditures, as well as how to increase the amount of savings. Therefore, the budget is the first key to saving, financial success and overcoming the difficulties that individuals may face in the future.

Funding target

The goal of financing should be to achieve a goal that helps to improve the financial situation or production, and not to cover consumer expenditures, as unplanned loans may cause financial crises that extend for very long years, and should not exaggerate when requesting financing and only be satisfied with the amount you need, Even if the customer is eligible for more money.

Avoid financial default

The debt burden ratio is the ratio of the customer’s tolerance to pay the monthly installments based on his monthly salary or income. If the monthly salary, for example, is 10 thousand dirhams and the value of all the monthly installments is 2000 dirhams, then the debt burden ratio is 20%, and the borrower must take proactive steps in the event of cases Emergency, to avoid financial stumbling.

Set financial goals

The lack of short and long-term financial goals hinders the culture of savings among individuals and is one of the most important obstacles that hinder these efforts. Defining these goals contributes to forming a clear vision of the amount of money that is to be saved during a specific period, while promoting a culture of commitment to the budget and plans for achieving the goals, and monitoring the progress made by the individual.

Keep watching

Poor credit scores can lead to difficulty obtaining loans or credit cards, as well as it increases the cost and interest rates that arise from them, because credit does not get damaged overnight, so we cannot expect to improve very quickly, as monitoring must continue, Keep spending within logical limits, while paying debts on time every month.

Early retirement planning

Early retirement planning is of great importance in terms of financial regulation and enjoying a stable life, as a person’s average saving rate must match his or her income and lifestyle, and therefore the amount of what a person needs for retirement must be calculated, including the basic income for daily living expenses (household bills, etc.) ), And estimated income for emergencies.

Financial institutions have stressed the importance of setting goals for the retirement stage.