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Financial Tips

5 Financial Tips and Rules to Follow and Live By Throughout Your Whole Life

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

5 Money Habits that you need to Stop Immediately

You can have the best of intentions and still get yourself into trouble where your money is concerned.  If you struggle with your financial everyday workings, look at this list of bad habits to make sure you are not harbouring one of them.  You may be sabotaging your own finances without knowing the reason why.

5 Bad Habits to you need to immediately quit:

  1. Buying on Impulse; has to do with your emotions. When you see something on sale and it immediately is something you absolutely must have, not something you needed a moment ago, it is called “Impulse Purchasing.”  You bought it before you think clearly about affordability and if you really needed it.

Curbing impulsive purchases, you need to force yourself to wait before you buy.  The waiting could be a day or 30 days but it will give you time to think rationally about the purchase.  There is a very big chance that you will realize you do not need the purchase and maybe do not even like it that much.

  1. Rely on your Credit Cards; to live a more luxurious life than you can afford will turn out to be one of the worst influences on your finances. If you cannot pay the whole of the balance each month, you should not use your credit card.  Your purchases will cost you much more with the interest you have to pay each month.  You might still be paying for purchases you cannot even remember making anymore.
  2. Loving Convenience; when you find yourself making purchases for convenience’s sake, you are just being lazy. Every now and then, treating yourself to a nice convenient purchase is all right.  Fast Food everyday will cost you eventually.  Do that little extra work to cook yourself a meal, or pack a lunch bag, or brew your own cup of coffee before you leave home, will have you saving lots in no time.
  3. Not working on a Budget; if you do not learn how to plan your budget and how to stick to it, you will not get ahead financially or stay afloat, for any time. Your budget will enable you to see how much money you have to pay bills, how much you have left, and how much you can actually spend.  You can see where to make changes to possibly save more money and also avoid going into the red.
  4. Vices; this includes habits like smoking, drinking, and gambling. But it can also include other things like shopping for no reason, eating out a lot, or anything that you really do not need that tempts you to spend money can be called a vice.  Anything you know you shouldn’t spend money on, but you still do, that is a vice.

It would be best if you quit any of these bad habits, it will be good for your life, and it will be good for your wallet, leaving you happier and financially stronger.