Start thinking about your family’s financial security before it’s too late.
Financial security is knowing you can afford to pay for your needs and wants – today and in the future. It also happens to be one of the most common reasons why we plan to save and invest in the first place.
Here are ten easy and ingenious money management strategies that will help you save more and make you feel more secure:
Draft a Budget
Begin with noting down all the sources of income such as salary, benefits, bonuses, reimbursements, or income from other sources. Compare this with all your monthly expenses such as grocery shopping, electricity bills, etc. Don’t forget to add expenses such as car insurance, maintenance costs, etc. to help you get an estimate of your monthly earnings and expenditure.
Trim, trim, trim!
Once you have the list in front of you, analyze all the key areas where you think you can cut down on. For instance, opt for cheaper telephone and television subscriptions. You can also start planning meals which will reduce expensive last-minute order-ins and you’d be surprised by how much you will be able to save.
Eliminate Unneeded Costs
You can save a significant amount of money by paying bills on time. Avoid penalty charges and late fees for bills or subscriptions such as electricity bills or library overdue, etc. Library overdue seems like a small cost because they only charge a seemingly normal amount of ₹5 per day. Imagine not returning it for say, a year; and you’d be charged with ₹1825!
Draft a Repayment Strategy
If you have debt, consider strategizing repayments in a manner that you can reduce the interest on your debt. You can repay by prioritizing debts that have a high-interest rate along with maintaining a minimum repayment amount of all your debt. You can also consult a debt counselor for better advice.
Set Saving Goals
You’re likely to squander all your hard-earned money if you don’t set goals. Save with an aim to help you stay motivated and reduce the chances of impulsive shopping. Divide your goals into short-term (such as attending a rave party on the weekend) and long-term (such as buying a house). Once done, start keeping aside the necessary amount of money every month by thinking of it as another expense.
Familiarize yourself with basic financial terms and understand which tax bracket you and your spouse belong to. Ask your employer about medical claims, child care costs, donations, etc. to avoid paying extra tax.
Switch To Online Banking
This small step can help you save more than you think. It will enable you to set payment reminders, review your monthly expenditure and spending pattern, schedule bill payments, etc.
Take advantage of workplace plans that include retirement plans, matching programs, health benefits, flexible accounts, and more.
Plan Your Retirement
It doesn’t matter if you are in your 20’s or 30’s, planning and saving for retirement will help you secure your future. Start early and don’t hesitate to inquire about different retirement plans.
Consult an advisor
An advisor will help you reduce financial confusion and stress and suggest a customized plan. It is a fact that individuals who consult financial advisors feel twice more secure than those who don’t.