If the New Year
is considered all about new beginnings, don’t you think that this is the right
opportunity to move towards financial prudence? Although the New Year might
still be a few days away, but this is the right time to get some personal
financial matters in place, before the Christmas and New Year celebrations take
over. The simplest thing to do is to include any money related resolution to
your list. Doing so might seem to be a spoiler but this should well be the one
decision that you were able to put in practice and get paid handsomely in the
long run. If you wish to plan ahead of time so as to stay on top of your
personal finances, here are some points with which you could start off.
is considered all about new beginnings, don’t you think that this is the right
opportunity to move towards financial prudence? Although the New Year might
still be a few days away, but this is the right time to get some personal
financial matters in place, before the Christmas and New Year celebrations take
over. The simplest thing to do is to include any money related resolution to
your list. Doing so might seem to be a spoiler but this should well be the one
decision that you were able to put in practice and get paid handsomely in the
long run. If you wish to plan ahead of time so as to stay on top of your
personal finances, here are some points with which you could start off.
- Learn
more about your finances:
In case you think that it is solely the duty of your financial advisor or
planner to know about all kinds of financial products, you’re grossly mistaken.
Apart from the financial planner, it is also the investor’s responsibility to
know where to invest his dollars. Even the investors who prefer to stay with
simpler products should study their investment choices. The problem with most
people is that they don’t have an inclination towards reading on finance. Well,
you don’t have to become a CFA but you should know the basics. Having a basic
understanding will help you get a grip on the bigger picture.
- Reflect
on your cash flow:
Another simple way of getting disciplined and getting into the habit of saving
is to first find and then plug the loopholes in your expenses. If investing is
important for you, track the cash flow. Once you figure out your avoidable
expenses, you can easily channelize money into savings and investments. People
are usually undisciplined and they love to be savers, not investors. So, jot
down where you spend, what amount you spend.
- Start
with a small amount:
If you find it difficult to save and invest, the best way to do so is to start
small. Many people will think that small investments take them nowhere. A small
amount out away may look like nothing but you will rather be surprised to know
how this amount may add up. Hence, keep saving money in small amounts so that
you can soon see your fund growing.
- Manage
your debts:
While you investigate your expenses, make sure you pay close attention to your
loans. In case you realize that you have too many, it is time that you
consolidate them. You can either seek
help of the debt consolidation programs or take out debt consolidation loans in
order to combine all your loans into a single monthly payment. Before doing
that, remember that all loans are not bad and hence keep paying the ones are
used to build assets, like mortgage and car loans.
Hence, if you’re
someone who is dreaming of spending a debt-free 2015, take into account the
above mentioned tips to save your dollars. At the same time make resolutions to
invest safely.
someone who is dreaming of spending a debt-free 2015, take into account the
above mentioned tips to save your dollars. At the same time make resolutions to
invest safely.