Finances are among the most important aspects
that demand perfection in treatment. After all, they affect every single part
of your materialistic life. Career, dreams in fact personal relations and your
status in the society. Without any second option, you need to know how to
manage your financial matters to have a better future. You may not bear mistakes or regretful
decisions. Yes, things happen but why not at least keep all the necessary precautions?
Separation of need and desires is necessary
This is the first and primarily important. Everything
on this planet has some rules and money matters cannot be exceptional. You have
to keep a gap between your desires and basic needs. However, this does not mean
that you should not enjoy life, but forget not to keep the limits.
Separating the materialistic desires from
actual requirements is a skill. Take an example – People around you and in the family
are continuously suggesting you buy a new car. What will you do then? Will
you buy a new car??
The idol behaviour in this situation is –
judge properly to realise if you really need to replace the old car or not. If
it is working well and solving all the purposes, it was purchased for, why to
spend money. The market always has something new to offer but that does not
mean you will keep running after every new model.
Stay organised
Follow categorisation and assign things
accordingly. Do not keep multiple bank accounts. They can be assigned for
different purposes.
- Keep one main checking account to pay all the bills, expenses, obligations, instalments etc.
- If you have a family then keep a joint checking account for the above and other family expenses
- Keep one saving account for a safer tomorrow.
- Create an emergency fund and pour some pennies every month from your income
- Make files or keep the records in excel sheets of everything related to your money matters
- Never forget to do smart budgeting. Choose the method according to your own convenience. Either spend first and save later OR Save first and spend later.
Improve credit rating (If it is bad)
A huge part of the world is bearing the
mess in financial life due to a poor credit score. They fail to qualify to get
new credit cards, loan etc. Taking an apartment on rent becomes difficult, even
employers hesitate to recruit poor credit scores. If you too have the issue of
low credit rating then improve it as soon as possible. Such things get worse
with time and obstruct your financial plans.
Work immediately on the preventive measures
for instance – close the unused credit cards, store cards etc., pay the bills
on time. There are also several specialised loan products that are available
online to help you get a boost in credit rating.
Borrow funds on customised rates, payback
on time and by the end of the tenure, you can get a good boost in credit score.
Very few lenders even provide such options for worst credit scorers. For
instance - Very bad credit loans that come with no guarantor and no broker required if you
approach to a Megaloanstore direct lender.
Do not live in multiple debts
Scattered finances always create chaos in
financial, personal and professional life. It is never a good idea to stay
surrounded by multiple obligations or financial commitments. Maybe you have
the capacity to pay all of them without many efforts but still, that is not a
wise thing.
Why not get your debts consolidated to
encapsulate all of them in one instalment and on a fixed rate. In this way, you
can save a considerable amount from your income and can have extra money. Either
you save it or spend it on IMPORTANT things. Also, this improves your
creditworthiness and in future, you can easily qualify for any new financial
product.
Stay cautious while taking investment decisions
Always consider the varied aspects of the
investment products. Most of the people lose huge money due to their wrong
decisions on this part. Lack of knowledge is also a big concern. Keep your
market research deep, never invest in what others say and if necessary take the
help of a financial adviser. Do everything that is required to keep the
precautions for a safe investment.
Conclusion
The above ways do not demand many efforts
or an unreasonable length of time to reach implementation. They can be
brought in your practice from this very same moment while you are reading this
sentence. The actual need is to not to lose focus and keep working with
self-discipline.
Tags
finances