5 Recommended Financial Strategies for Life
How many years are you going to struggle with your finances? How are you going to stop it? If you are thinking that your financial struggle will stop when you are already promoted or when you receive a salary increase, you’re wrong. Whether you get a salary increase or not, whether you earn a lot in your business, you will still struggle financially. If you want to stop your financial struggle, here are the 5 recommended financial strategies that you must have.
Save Properly
Are you wondering why there were times that you don’t have any savings? This happens because you are saving in the wrong way. You are saving what is left after spending your money. If nothing is left, nothing will be saved.
The proper way of saving follows a certain formula which is called as 70-30. Before you spend your money set aside the 30% for your savings. The 70% of your salary is what you are going to use for your expenses.
Emergency Fund
The reason why you are saving is for you to build an Emergency Fund. An Emergency Fund is the 6 months equivalent of your monthly expenses. The purpose of an Emergency Fund is for emergencies. Such as house repairs, car repairs, medical reasons and for a sudden loss of job. If something happened on the mentioned emergencies, you will not run out of cash. This is another way on how to prevent yourself from entering bad debt. If in case, the emergency fund can’t sustain your needs in a certain emergency at least it lessens the money that you are going to borrow.
Live Below Your Means
How much bad debt did you incur? Are you struggling how to pay them? The possible reason why you are struggling is you don’t see the cause why you can’t pay your debt. One cause why you can’t pay your debt is you are leaving more than what you earn in a month. You are in this kind of situation because you have a poor spending habit.
Learn to live below your means. Understand and internalize what you need and what you want. Needs are those you can’t live without having it. While wants are those you buy based on your emotions.
Protect Your Family and Your Health
Life Insurance and Health Insurance are really expensive, but it pays more than its price in the long-run. Health Insurance protects you from spending all your hard-earned money for your medication.
If you have dependents or you are bread winner it’s wise to have a Life Insurance. As this protects them financially for your sudden death or from your total disability to provide food on the table.
There are a lot of companies offering Life Insurance and Health Insurance. This sounds really confusing, so, before getting either your Health or Life Insurance consult a financial adviser.
Allow Your Money to Work for You
Don’t work alone. Don’t spend your time working for money. Instead, spend some of your time learning how to let money works for you. This is one of the secrets of the rich why they financially worry free.
Let your money work for you by choosing the proper business and investment that suits your needs.