Tag Archives: Financial planning

Tips That Can Help Improve Your Personal Finances

9 Jul

Knowledge is the most important part with regards to managing finances properly.Keep reading to find out how you can improve your financial situation.

Buy your food in large quantities to save money and time. Buying product in bulk is usually much cheaper if you are going to use what you purchased. A lot of time can be saved by cooking a week’s worth of the week.

Take advantage of online banking alert services offered by your bank can offer you. Many banks will send you email or texts when there is activity reported on your account.

Try making presents instead of wasting all your money on store bought things. You can save a lot of money during the holidays by reducing spending at department stores.

You should utilize flexible spending account to your advantage. Flexible spending accounts can be great for covering medical or childcare expenses. These accounts let you may save a set amount of money to the side before takes to pay for these expenses. There are certain conditions to these accounts, so speak to a tax professional.

Give yourself a monetary allowance for small expenditures every month. The cash allowance can be used to treat yourself to things like books, meals out, books or a new pair of shoes, but when it’s gone, that’s it. This lets you can reward and reward yourself without messing up your entire budget.

Avoid ATM fees by only using the ATM of your bank. Financial institutions often levy hefty per-transaction and monthly fees for using the ATM of other banks, and those fees can be very expensive.

A good strategy is to set up an automatic withdrawals in order to pay your main account into a timely manner. This is a sacrifice, but soon you will think of it as a bill and you will not notice it but it will be growing.

Make sure that you have a flexible account for spending.

Buy the store’s generic brand rather than a name brand. National brands are usually more because they need the money to advertise their brand.There is often no change in quality or its quality.

Make it a habit to review your credit report. There are more than a couple of ways that you can see your report at no cost.

Don’t make the mistake of neglecting home or your vehicle in an attempt to save money. By fixing these things now, you will prevent large scale problems from happening down the road.

As you’ve read, it takes knowledge to take control of your finances and be successful. If you’re able to learn all you can about personal finances, then you’ll be able to waste less money. Keep this article in a safe place and refer to it when you need to. If you use the tips to your advantage, you will have your personal finances in order before you know it.

How To Keep Your Personal Finances Thriving

11 Jan

Everyone needs to face the financial facts of their daily life. In many cases, it feels like new expenses are constantly being rained upon you. You can learn methods to handle finances better in order to save money.

You may not know that after a certain period of time, debts expire. If you think that a debt has expired, consult an expert. You may not need to pay the collection agency for the expired debt.

Talking to a good friend or family member that has worked in the financial planning industry can be a good source of free information on how to better manage your finances. If one personally does know someone like this, maybe a friend of a friend who knows how to handle their finances could be a help as well.

Manage your finances in the same manner that banks manage their finances. Calculate how much you make and how much you spend each month. You want to always predict higher costs for things that you are predicting to spend money on, such as fluctuating bills like water or electricity. Then once you calculate your budget and have balanced things out make sure you put any money you have left into your savings.

Choose what you purchase wisely. Are you interested in realizing savings of 100 dollars or more each month? Although it may be difficult, take out unnecessary expenses like a storebought coffee and make your own. You can save five dollars or more per coffee by making your own coffee and adding creamer and whipped topping. Pour it into a portable cup and take it to work!

Do not waste money on anything that promises to make money easily. A lot of aspiring online marketers fall prey to this trap. While it’s important to increase your knowledge, rather than spending a lot of money, learn more through actually working.

Although it takes some foresight and a willingness to sacrifice convenience, you’ll find it does save you money to make use of only the ATMs operated by your bank or other financial institution. Financial institutions like banks often charge high transaction fees when people use other ATMs, and those fees can be very expensive.

Set out your budget before payday, give yourself a small allowance till next payday and bank your entire check. By budgeting your weekend money, you will help protect your paycheck. That way, you will still have money on Monday, when you’re in the proper mindset. This will prevent you from spending money rashly or unwisely.

When planning a budget, consider opening multiple checking accounts. Use your primary account to pay your necessary expenses and use your secondary account for optional expenses. If you are in the situation that you can pay your bills every month, you can keep track of where you are spending your money.

Sacrificing your home is a difficult decision that nobody wants to make. You can reduce your overall spending by looking into business and homes that cost less to live in. The last thing you want to have happen is to be evicted from your home after your repayment efforts ultimately fail. It’s best to be proactive about it.

Developing a budget you can stick to will help get your finances in order. You need to have a budget to help you change the way you spend your money. It will also keep you accountable for your spending.

The information in this article should help you understand how save in spite of the unexpected expenses which often arise. Don’t worry if your financial situation takes a little time to take care of. Just like when you diet, the results are not instant. Just stick with it and you will begin to see changes. Remember, an investment in good financial planning advice is usually well worth the effort.

Be Bold When Trying Out These New Ideas For Personal Finance

10 Dec Budgeting - don't eat out so much
Budgeting - don't eat out so much

photo credit: avlxyz via photopin cc

Do you need to know how to better manage your finances? With a little guidance, it’s definitely possible! Luckily, you’ve come to the right place to learn how to get your finances on track.

Carefully assess your complicated relationship with money. If your goal is to improve your financial situation, you won’t be able to do so until you have a better understanding of why you spend and save the way you do. Take some time to write down your beliefs about money, and determine why you feel think the way you do. This helps show you where you went wrong and helps to put you on a better path going forward.

Working from home is one avenue worth investigating when you want to save money. Truthfully, working in an office can be expensive. You will spend a lot of your money on purchasing food, parking and gas.

You should utilize flexible spending accounts if they are offered by your employer. Flexible spending accounts are perfect for people with medical deductibles, daycare expenses and who purchase over-the-counter medication. With such an account, you can deposit money directly, before it gets taxed. There are limits to the amount allowed to be placed in a flex spending account, so you should consult a tax professional.

Sometimes your score will actually drop for no good reason. This is not an indicator that anything you have done is wrong. As you continue adding positive items to your credit history, your score will increase.

Every year, take your portfolio and rebalance it. Re-balancing will help your investments remain aligned with risk tolerance as well as goals. It also forces you to track your investments.

Try to choose a broker that you can fully trust. Verify that they have great references and make sure they are honest and upfront with you. It is also important to be realistic about your level of experience.

Look over all of your insurance plans. You could discover the the amount you are paying for insurance is too high. Look into other alternatives: get rid of the features you do not need, raise your deductible if you can and compare your current plan with what other companies are offering. If you cut back on insurance coverage, you can save money to use somewhere else.

Find out if anyone in your family or amongst your friends has worked in finance, as they can give you great advice for your business. If one doesn’t have a friend or family member who can help, they must do their own research online or by purchasing a good book.

Work on boosting your credit score prior to purchasing a car or a house. You can either get a loan out and pay it as fast as you can, or get a couple credit cards that you pay back on time. Aim to pay at least double the minimum payment on all your outstanding debt, even more if you can afford it.

Be sure that you’re setting aside at least one day a month to pay your bills. You do not want to spend a whole day paying your bills, but paying and organizing your bills must have its own day. Make it an absolute habit. If you miss this day, it could really do some damage to you financially.

Hammer out a smart budget and abide by it. While it may seem like you’re making smart spending decisions, you may be spending money on unnecessary things. Record your every transaction, even the most minor one. Look over these things when the month comes to an end. This way you’ll know what you need to chance.

If you use online banking, then consider signing up for the alert features that may be available. The bank will email or text you when important changes are made to your account. Receiving an alert when you have a low balance or a large withdrawal protects you from both overdraft and fraud.

Your perception of finances has likely changed by now. With what you have went over here, you will find that there isn’t too much to having a stable future, financially. The only thing left to do is to persevere towards a better financial future and stick to it.

Don’t Continue To Be A Slave To Out-Of-Control Personal Finances. Try These Tips!

9 Dec Ideas to help you save more money
Ideas to help you save more money

Pressure on the piggy bank?

Lots of people are having hardships with the way our economy is nowadays. You will find that even though you cannot always be rich, figuring out a comfortable way to live within your means is still possible. Read this article to find out what you can do to improve your financial situation.

For young people who are attempting to save a lot of money, they need to look into compounding interest. Establish a dedicated savings account and set aside a certain percentage of your pay.

Spread your purchases across several credit cards instead of using one that is nearing your credit balance limit. You will probably have lower interest payments this way. This can help you build your score and not hurt it if you manage your credit lines the right way.

A flexible expense account is an important thing to establish. Besides, the money you put in this account will not be taxed.

Although you may not realize it at first glance, there are considerable potential savings involved in buying a home. If you plan to be in an area for a significant amount of time, this may be a wise option, as you will eventually pay for the house and live rent-free. Renting drains money because you won’t ever own the home you’re putting the money into.

Always start saving your money quickly, so you can manage finances more effectively. Stop making excuses to avoid saving, and make it a priority. Make setting aside a certain amount each payday toward savings just another one of your bills. Think of it as “paying your future,” and when the future becomes the present, you’ll have a lot of money.

If you don’t take care of your home and vehicle, you are not really saving money. By keeping these personal assets in good condition with the proper upkeep, you minimize the risk of having to make a major repair down the road. In the long view, taking proper care of your possessions is going to save you more money.

Find out how much you usually spend each month. Establish a budget that corresponds to these expenses. Determine certain areas where you are spending too much money. Failure to do so may completely cancel out a respectable income. Try using finance or budget software to help you with this. Leftover money should be used either for debt payment or savings.

Don’t drink bottled water. The price tag is entirely too high while the tap water alternative is completely free. If the taste is not appetizing, you can use a filter or add flavoring to your water. That can make the water taste better so you enjoy drinking from the tap.

In these turbulent times, spreading any savings you have around multiple locations is sound strategy. Savings accounts, high-interest savings accounts or checking accounts, regular checking accounts, money-market accounts, stocks and gold are all sound places to keep your money. Using a variety of strategies will help you protect the money you have.

Next time you’re at the supermarket, stock up on store brands rather than choosing the more expensive name brand items. Many times, the only difference between the store brand and the national brand is the price. They often contain very similar ingredients but the fillers, fragrances and packaging may vary. You can stretch your food budget a lot further by using generics, so go ahead and give them a try.

In summary, though you might not be rich, you can still improve your personal financial situation in such a way that your life is improved. In many cases, all that is required is the desire to change one’s personal finances for the better.

Is Investment Timing Important?

18 Oct Investment Timing

When it comes to investing, you’ll hear different opinions about whether timing the market is possible to do over the long term. The people on either side of the argument all have their facts as to why they are right. I’m not going to debate this in this article. What I do want to do is look at it from another angle – how important is investment timing?

Investment Timing

photo credit: h.koppdelaney via photopin cc

If you’re in your 20’s or 30’s and have a small balance in your superannuation fund, whether the markets go up or down next year doesn’t really matter. Even if you get the timing right and are all in (or all out) of an asset class, the actual return you could make (in dollar terms) is quite low. so if you’ve got $20,000 invested and can get an extra 10%, you stand to make $2,000. Now, that will add up over the long term thanks to compound interest, but that’s not the only thing to consider.

On the other hand, if you’ve got $1,000,000 and can make (or not lose) 10%, that equates to $100,000 – a much bigger amount.

So when it comes to market timing, the only reason we’re concerned is because we want to maximize our returns and minimise our losses.

I suggest that this becomes more important to those people who are ten years either side of retirement. They’re at a stage of life where they’re more interested in looking after their capital – they don’t want to take unnecessary risks with it – hopefully they’re saving enough to be on track for a comfortable retirement without needing to take big risks.

So for these people, taking risks is not something they need to do. And history shows us that people are more concerned about losing money than they are with making it. So for these people, a conservative approach could work well. I’m not advocating putting everything in cash, but am suggesting they don’t try and time the market to try and chase the best return – they’ve got the most to lose!

Slow and steady is the best approach here.

A 10% drop on a million dollar portfolio is much more significant than on a $30,000 portfolio.

As they get closer to their expected retirement date, the thing they’re most concerned about is the predictability of their final retirement nest egg. They don’t want the potential value to fluctuate by 10 or 20% in the year they want to retire.

Or in the year after they retire.

So for these people, certainty is very important.

So perhaps something to consider for people close to retirement is how much fluctuation they’re prepared to accept in their capital.

The risk / return theory suggests that in order to achieve a higher return, you need to accept a higher level of risk. One aspect of risk is fluctuation in your capital.

So if you need to achieve a higher return in order to achieve your investment goals, you must accept that your capital will fluctuate in value more.

Is this acceptable to you?

The ideal position to be in is one where you have enough money saved when you’re five years away from retirement that you can accept a lower investment return – and lower risk – and still achieve your desired lump sum of money when you retire.

Financial Planning Tips To Get You On The Right Track

3 Oct Financial Planning image - Dollar Sign

Financial Planning image - Dollar SignThe following ideas are intended to give you ideas to begin your financial planning journey. When you make the decision to make financial planning part of your daily routine, it will not appear so tough. Starting your financial journey could be the hardest thing. These suggestions will certainly assist encourage you to make financial planning one of your primary objectives.

Financial Planning Tip # 1 Repay Debt

One of the most significant aspects battling against financial planning is personal debt, particularly credit card personal debt. If something begins as a little personal debt it could develop into a larger debt due to the fact that you were not reducing the debt regularly!

Financial planning implies you have a plan and paying personal debt must be the very first objective of your plan.
The main benefit of reducing and repaying your debts is that you then have more money to invest for your future. In addition, your living costs become lower because you no longer have debt repayments to make.

Financial Planning Tip # 2 Start Investing

An important principal is to start investing. Financial planning implies that you are saving and planning  for the future, so you will certainly wish to take cash you make today and buy investments for the long term.  Areas you can invest into include the stock exchange, in bonds, IRAs, 4019k) or a blend of all of the above. Saving your cash with the aid of financial management and good discipline will certainly help your nest egg to grow.

Financial Planning Tip #3 – Have Goals

In my experience, the number 1 reason people don’t save is because they have no goals for the future. Without goals, there is nothing to motivate you to defer spending today in exchange for a greater benefit in the future.

Take some time to set out some concrete goals – things that are important for you. It could be a holiday, new car, maybe even a career change!

Financial Planning Tip # 4 Spend Less Than You Earn!

This is easy to understand but not as easy to put into practice! This is due to the fact that many people prefer to buy new things and want the latest and greatest TV, Phone etc without thinking about the long term consequences.

Regardless, you can’t get ahead financially if you’re spending more than you earn. It doesn’t make sense, does it!

I’ve met some people who spend more than they earn, and fund this by increasing personal debt. This isn’t sustainable and will only end in a bad way. Which brings me on to my next tip…

Financial Planning Tip # 5 Know where Your Money Goes

Budgeting is another financial concept that many people struggle with. You will not have the ability to save unless you’re aware of where your money is going and you are in a position to influence your spending.

You must make a record of all the money that comes into, and out of your household. This may be difficult to do initially, but once you start it, it gets easier over time. It’s not until you know where your money is going that you can begin to take steps to re-prioritise your spending so that an adequate amount of money is being saved for your future.