Ways To Improve Your Finances

Money is hard to get but it is very easy to spend it. One should know how to spend money. A good knowledge (not the expert knowledge) of finance will help us to tackle the money problems in future.

Anyway investorshomeguide, as an expert is here to guide you. Here, I want to share few of “the ways to improve your finance”.

1. Set your financial goals

First and foremost important step is to decide on your financial goals. Few satisfied with toasts and few with biryani, few with the two wheelers whereas few with big four wheelers. Your dreams help you to decide your financial goals and your goals make it easier to work toward them.

2. Prepare a realistic budget & track the achievements

Mostly people spend two-third (approx.) of their income just to fulfill basic needs of the family – food, clothes and shelter. Besides, there are the numbers of ways a person can spend his/her money. So, it’s better to create a budget which may be daily, monthly or annually based on situation and keeping track of every expenditure help to prohibit unnecessary wastage of money. You can take help of tools freely available online.

3. Know to say ‘No’ during shopping

Don’t hesitate to say ‘No’ to the unnecessary shopping. The customers should understand the tricks of marketing such as bonus cards, reward cards, free gifts and so on and be familiar with them. It helps you to save money.

4. Do online research of products

Now-a-days it becomes easy to do a research of the product you want to purchase at home through online with no time which saves time and money during the time of shopping.

5. No MRP is Final

The customers should not accept the tagged price as final. It is profitable to negotiate the price of the product. Don’t hesitate to ask the seller if you have seen the same product somewhere else with lower price tag.

6. Negotiate your salary

If you have recently changed your jobs or realized that you are underpaid as compared to your juniors or subordinates of same rank then it might be time to sit down with your superiors and bring the same to their notice.

7. Increase your sources of income

“Don’t depend on one income. Make investment to create a second source" – Warren Buffet. Depending on one source of income is no more appreciable as well as advisable. Always do search for other sources of income. Now-a-day online businesses such as writing blogs, publishing video (including clips) at U-Tube, online teaching etc. are safest sources of income which are worth doing. It can help you to achieve financial stability.

8. Evaluate your debts planning

Evaluate your debt decisions by considering the options available and their pros and cons carefully. Pay off debt first having high-interest rate such as credit cards, help you to reduce fees and interest rate charges. One must read and understand the term and conditions very carefully before choosing any credit card. Moreover, set limits on your credit cards. Comparison websites such as CreditCards.com can help you find the best card for you.

9. Make the habit of regular investment

Make the habit of regular investment instead of market fluctuations. “Don’t put all eggs in one basket” – is one of famous quote by Warren Buffet with regard to the investment. It’s better to invest in index funds and other types of securities that reflect the market broadly, instead of one or two companies.

10. Start early

Time is money so start investment as early as possible. I do hope that we are all familiar with the power of compounding. Saving early will lead to a much bigger nest egg at retirement time than waiting to save until mid-career. Moreover, don’t forget risk verses profit rule. If you want higher profit then you have to take on greater risk.

11. Take shelter under professionals

There's nothing wrong with seeking professional’s advice whenever you are finding nervous in order to handle your own money. It helps you to avoid unnecessary tension in near future. Your employer might also offer free retirement investing assistance.

12. Secure yourself and family through life insurance

Taking life insurance policy is the best option till now in order to secure you, family or dependents. But choosing a right plan is not an easy task. Take advice of the professionals if required. Don’t take it as an investment option.

13. Do retirement planning

It is always advisable to the salaried persons to make the proper planning for their retirement. 'Retirement calculators', the readily available online tools, make it easy to estimate how much money you should save before retirement depending on your savings and lifestyle. Putting 10 percent or more of your income toward retirement can be overwhelming.

14. Do non-financial helps

Don’t hesitate to give your valuable advice or suggestions to the person who is seeking it. It’s a kind of non-financial help to the society. Giving away used clothes, toys or other things to needy brings peace to your mind.

15. Live simple life with simple habits

If you change the way you look at things, the things you look at will change. Small changes in lifestyle, brings big changes in life. Biking to work instead of driving, using public transport system to conveyance instead of private vehicle, watching cinema at home on online instead of going to cinema theater, eat at local restaurant instead of five star restaurants, etc., can significantly reduce monthly expenditures.