We don't have to be financial geniuses, but each one of us has to be equipped with the best and most basic money management advice.
In follow-up advice, Todd Konsman said he had helped him pay off his $ 50,000 debts and achieve a savings rate of 65% of annual salary without seriously economizing or getting a six-digit salary. The following tips are intended to help you better deal with the funds.
1. Make an uncomplicated budget
Budgeting and staring of numbers on a daily basis are not recommended, taking into account the fact that big data and complex numbers are not trapped.
So you can create a simple budget for monthly expenses and income, follow it, review it on a monthly or yearly basis and repeat it, no need to complicate it or obsession with every cent.
| A simple monthly income budget helps you save money (Getty Images) |
2. Control credit eligibility points
Whether you know it or not, your credit balance plays a big role in determining the amount of your current and future funds, especially when trying to get a low interest mortgage or applying for an apartment.
Getting low credit ratings (...) can make your life more difficult, which means you should always monitor your points.
3. Owned a retirement plan
A retirement plan should be accelerated and not delayed, especially for young people who are pursuing their careers. This mentality causes many dilemmas in the future. At first, you have to start saving, then adjust the amount you save and learn over time.
The longer you invest your money, the greater the compound interest. When you postpone depositing money into your retirement account, you will have to contribute two or three times your normal contributions to the desired rate at the end of the day. Some seniors said they wish they started early.
4. Invest your savings and emergency funds
We all know the importance of saving money and allocating others to emergencies, but investing money rather than saving it is a more effective option. That doesn't mean investing in stocks or ETFs, but you still have to get some interest on that money and get some extra money while saving.
| Investing Saved Money Helps Get Extra Money Easily (Getty Images) |
5. Debt repayment strategy
Perhaps the best you can follow is to develop a fixed debt repayment strategy. The goal is to find a way that fits and aligns with your financial situation, and stick to a fixed payment amount.
Determine spending priorities
Spending priorities should be prioritized and focus on reducing housing costs, food costs and other large purchases, by moving to a smaller apartment or cooking food instead of buying it ready. You should consider every major purchase and determine if it is necessary or not.
7. Don't allow credit cards to control your expenses
Credit cards have a bad reputation when it comes to debts and high interest, but they do work for purchases, refunds and other rewards. The challenge is to control your credit card expenses and not allow them to control you.
The problem is that credit cards make it possible to buy products without having credit, so you should train yourself not to use your card to buy things you don't have to pay for, especially for temporary gratification.
| Setting spending priorities will reduce your spending (Getty Images) |
8. Request for salary increase
If you work hard and bring great benefit to your company, you deserve an increase in salary, which will keep up with rising billing costs and inflation. An increase of 5-10% of your salary can have a positive impact on your financial life.
This increase can help you pay off your debts faster, increase your savings, or help you contribute more to your retirement investments.
Often your manager will be willing to give you this increase if you ask him and give your reasons for it.
9- Automate your savings
In case you have recently started saving your money or are facing some challenges at the level of remembering your need to save in the first place, you must follow the option of automating savings. Thus, these savings and your retirement contributions will be regular, and there is no need to remember them or log in to your account from time to time.
10. Wealth management is not exclusive to the rich
Most people do not want to look at their net worth because they are afraid of the results or think it is only for the rich, but monitoring net worth is a crucial factor in managing your money no matter what wealth you have.