Many people are worried about their finances because it seems that they don’t have enough. This puts stress to you and can even affect other aspects of your life. Before you burry yourself with debt or if you are already in debt you have to improve your finances. Finance experts like the one you can find at www.crunchbase.com/person/maureen-oconnell – Maureen O’Connell can help you plan for your finances. If you don’t have enough budget to hire one, here are general things you can do to improve your financial health.
1. Have an emergency fund – If you already have one then grow it. Some people don’t even have an emergency fund and it is crucial that you create one so that you can use it in case of an emergency rather than to use your credit card.
2. Pay your credit card debt – If you have savings and a debt on your credit card, it would be better to pay off your credit card debt than to keep that savings. There is an increase in the amount you owe for every month that you don’t pay but your money doesn’t grow as fast as your credit card charges do.
3. Save at least 10% of your income for retirement – No matter how small or large your salary is you have to save for your retirement. If you haven’t done that yet, it is best to start as soon as possible. Even if you are already old, you can still save for your retirement but most will have to choose a more aggressive plan than when you start at 25.
4. Make sure your mortgage is paid before you retire – Once you have retired, your income will normally drop but your daily expenses wouldn’t. Make sure that you can pay for your mortgage completely so that by the time you retire, you lessen your expenses.
5. List your expenses – When you keep track on what you spend, you realise just how much your really spend. Every centavo you spend should be accounted for so that you can clearly see just how much you spend. This will open your eyes to how you make use of your money.
6. Visualise yourself in the next 5 years – You have to have a clear picture in your mind of how you are going to be in the next 5 years or so. Some people laugh at this but being able to visualise can help your brain develop ideas that will lead to the achievement of your vision.
7. Increase your credit score – When you have a high credit score there will also be lower interest rates and having this can help you save a lot.
8. Don’t buy something just because you can – Try to determine what things you really need and don’t overspend on things that you won’t really be using just because you have a big salary. In case you had an increase, just keep spending how much you used to spend so that you can keep the rest for your retirement or to pay your debt.