Smart Things You Can Do for Your Finances
Have you ever wondered what the best things are that you can do for your financial future? Here is a list of the smartest things that anyone can do for their finances.
1.Create a Spending Plan & Budget – If you are spending more than what you earn, surefire that you are headed for financial trouble. Best way to make sure that your income is greater than your expenditures is to keep track of your expenses for a couple of months, then create your budget that is sustainable within your means.
2.Pay Off Debt and Stay Off Debt - Best thing you can do for your finances is to pay off all debts. Focus on your most expensive debt—the credit cards or loans that charge the highest interest. Once debts are all paid off, focus on paying your mortgage, consider splitting your monthly payment in half and paying bi-weekly. Then pay extra as you can afford it. This will shave years off your mortgage and save you thousands of dollars in interest.
3.Prepare for the Future – Set Savings Goals – Saving money for your future is crucial, make sure to work on it steadily.
> Start saving on a regular basis through tax free account (TFSA) or RRSP, or both.
> Plan for your retirement. Figure out how much money you will need for retirement, which may also be your “rainy day” fund in case of emergency.
>Make sure you have enough insurance, accidents happen, natural disasters occur, make sure you have enough o cover them.
> Write a will and who will benefit from your assets when you die, to ensure who will get the benefits of your hard work.
4.Start Saving Early, But Never Too Late To Start – Because of the magic of compounded interest, even when the rates are low, someone who starts to save for their retirement early doesn’t have to save as much as someone who starts saving later in life.
5.Do Your Research Before Making Major Financial Decisions – Many people don’t assess their priorities before buying an appliance than purchasing an investment or buying a home. Make sure that you’re not one of them. Buying a home and saving for retirement are two of the biggest financial decisions most people will ever make.
6.Don’t Be Hasty With Major Financial Decisions – There are no major financial decisions or major purchases that need to be made on the spot. It is better to wait and learn a cheap lesson, than hastily rush into something and learn an expensive lesson. Take the time to sleep on big decisions you have time to consider alternatives, and get some other opinions or information.
7.Stay Married!!! – Studies show that married people earn higher incomes, have twice the assets at retirement, and live on 25% less than what single people would need to live the same lifestyle. Statistically speaking, staying married is good for your finances.