Tips and rules are not perfect solutions; they are simply given to guide you through your financial highs and lows. They will help you make the right decisions when decision time comes, and will enable you to see danger lights flickering before you make the wrong kind of turn.
5 Tips and Rules that can help you to Financial Freedom:
- Start a Savings Plan; pay yourself first. If you wait until all the bills are paid and all the other obligations met, there might be nothing left. The result may be that you will never have a savings account. Decide to set aside a 5- to 10% of your earnings that goes to a savings account. Do this before you start to pay your bills. This savings account should be separate from your other accounts.
- Build an Emergency Fund; that will have at least the amount of money saved that will be able to carry your expenses for three months. This can help when your car breaks down or you lose your job. An emergency fund will ensure that you have funds available to cover the extra costs or pay the bills. This account should be easily accessible but strictly used for only emergencies.
- Check your Insurance and Life Insurance Policies; many people pay too much on their disability and life insurance because of adding this and that to the original policies. Rather check what you have, make sure what will be enough, and stop what is not needed. You should have a policy that should cover at least 6 times the worth of your household’s entire income.
- Make a will and keep it updated; a lot of people do not have a will. When you have dependents, write a will. It does not matter how much you own, you have things and earn money, and you need a will. A Will, will protect your loved ones.
- Keep a Good Record of Everything; set up a system and use it throughout the year. Everything will be together when tax time arrives. No scrambling to find items and information needed to submit your tax returns. Without a system you might miss items that could save you money.
If you are not doing at least these 5 things, you should start making improvements. Choose one tip or rule at a time and start implementing them.