Create A Spending Plan & Budget
If you are spending more than you earn, you will never get ahead—in fact, it’s a sure sign that your finances are headed for trouble. The best way to make sure that your income is greater than your expenses is to track your expenses for a month or two and then create a budget. It can be a very simple budget, but you should have one.
Pay Off Debt and Stay Out of Debt
One of the best things you can do for your finances is to pay off all of your debt. To get started, focus on your most expensive debt—the loans that charge you the highest interest.
Prepare for the Future – Set Savings Goals
Saving money for your future is crucial. If you don’t set savings goals and steadily work towards them, you will have to rely on credit when times get tough. You might even need to work through your retirement years to supplement your small pension. Entering retirement may also be delayed or impossible if you are in debt because you need enough money to make all of your payments.
Start Saving Early – But It’s Never Too Late to Start
Due to 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.
Do Your Homework Before Making
Major Financial Decisions or Purchases
Many people will do more research before buying a TV than they will before 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.
Sleep On It – Don’t Be Hasty With Big Financial Decisions
There are no major financial decisions or major purchases that need to be made on the spot. In fact, being pressured into making a hasty financial decision is one of the warning signs that the deal might not be as good as it seems. All worthwhile opportunities will be there another day if you are patient. It is better to wait and learn a cheap lesson, then hastily rush into something and learn an expensive lesson.
Culled From: www.mymoney
