Whether a woman is working or a housewife, financial stability is something everyone should have. But most of the times the financial security of a woman is often compromised with that of the family’s. But it is essential to have your own finances in place – how do you do it? We’ve got a few tips you can consider:
It’s best you take charge of your finances by yourself – and for this, you got to be independent. Whatever the source of income may be, and whatever amount it may be, it’s yours! So you are free to do whatever you wish to with that money, without the influence of anyone else. So begin with getting independent!
Most women lose out here – unnecessary, unwanted shopping of things not required at all makes you lose out on the money which you can save and invest. Not that you shouldn’t spend on yourself, but spend smartly! Make a list of things you actually require and also of those which you can do without. This will help you know where exactly where you’re overspending and also to keep a tab on your shopping expenses.
Don’t just brush it off saying it’s not needed or that you don’t have any interest in it – it’s always best for you to be financially literate. Knowing about financial aspects help you make better financial decision. It’s not necessary you know everything, but some getting a gist of some crucial aspects will help you fare pretty well.
Apart from your regular savings, you need to have an emergency corpus ready – for all those rainy days which prop up without any notice! You’ll always thank yourself for cutting down on those unwanted expenses to create this emergency corpus. Also, if you don’t require this fund at all, you can always use it as your retirement corpus! So make way through your income for this emergency corpus.
Be it the smallest financial decision in your family, make sure you contribute to it. Your opinions in such decisions matter – you too, are a part of the family. Also, it helps you understand the current financial stance of the family in a much better manner. So no matter what, get involved!
Whatever you spend your money on, make sure it adds value to you and your life. Enriching yourself is the best return you can get from the money you spend. More than the materialistic stuff, focus on how you can grow and become a better version of yourself!
Envisioning the type of lifestyle you want for yourself is the best motivation to save money. Although the levels of posh may vary, there is not a single person in this world who doesn’t want a good life if not a fancy one. So it is quite apparent that the trick will work wonders in getting a person to save. What you can do additionally is draft an approximate budget of the items you have always dreamt of buying yourself and save accordingly. So make sure you let the future motivate you and give you a reason not to splurge all your hard earned money as and when you receive it.
2. Always think before you finalize on a purchase
When you are looking to save, it is extremely important to be able to differentiate between a need and a want. Therefore always ensure that you do not end up spending money on things that you may want at that moment but definitely do not need. Always only purchase things that you need to live a comfortable life until you are ready to splurge on things that are worth more money.
3. Visit a Financial Boot Camp
Financial boot camps are involved in conducting a fast-paced, tough-love approach to provide all the those who enroll with financial knowledge and skill sets that they require to make necessary changes in their budget planning. Enrolling in this will help you learn some basics in finance and also enable you to meet many like-minded people who have the same end goal. Two of the most famous boot camps one can try a hand at are LearnVest.com and MyMoneyCircles.com.
4. Put your intention to splurge on a highly controlled diet
Just like we diet when we want to shed a few kilos, it is a good idea to follow a financial diet to burn some expenditure calories. The way to do it is to assign two days a week as a no-spend day and entirely curb any expenditure that day except for maybe a few basic or emergency requirements. Doing this will help build your confidence if you are successful at it.
5. Trick yourself
Sometimes the best person to help you save is you. If you can not directly motivate yourself into saving money for a rainy day or any other purpose, then it is a good idea to keep an eye of the changing scenarios around you and use it to your advantage and trick yourself into saving. Currently, people’s paychecks are being reduced by around 2 percent owing to a temporary cut in the Social Security tax, and this is set to expire on December 31. What you can do is use this situation to your advantage and adjust a new paycheck amount to your benefit and put on some savings on automatic pilot. This will help prevent your dollar from socking away as you have already made an adjustment.
The term finance is how you manage your money, where you decide to invest and what should be the expectations to get the payback from the money you spent. When these finances are more about your welfare and choices, we refer them to as ‘personal finance.’ It makes an account to plan where and how much you must invest and save for your future. You are well aware of the fact, you cannot work after your retirement, and you still will have to survive the rich world with all the bills and schedules lined up. The pension you would be getting would not be enough to manage the household works, and the medical bills you might have to cover then, as if we think it practically, at the age of sixty, anybody would need medical security for oneself and the family. Hence you must plan your retirement savings from the very starting. It will be a sensible and smart step if you save the ten percent of your total income for retirement.
Similarly, you might be paying rents of the house you might be living it, but you would want a home of your own. It makes a huge count decide how much you should invest in purchasing a new house! There is a thumb rule which suggests, and you must spend the amount which is feasible for you to recover in about two point five years of your savings.
Just like the mentions above, there are many decisions you must make cleverly, and we are enlisting a few amongst them:
Net Worth and Personal Budgets
It depends on how much you give the decisions the importance according to your finances. It is better to provide some crunches of your financial health; how much you must spend and how much you must save to achieve long-term commercial growth. You must make a plan of how much it is essential to spend and what are expenses which are not much necessary but still wish to spend on it. This can give you an idea, where can you cut down the unnecessary cost.
Create a personal budget
You must create a personal budget which can help you with the following as a financial tool
Reduce or eliminate the unnecessary expenses
Prioritize spending and saving
Plan for costs
Save for future goals
Plan for emergencies
You can categorize your expenses that you might want to include in your budget which might change with time and as per the situations like alimony, retirement income, child support, rents and luxuries, tips, salaries and wages, bonuses, disability benefits, social security, interests, and dividends, etc.
If you go evaluating your net worth, you would realize how negative it is turning out to be after the student loan you owe. You might be very grateful to the student loan, and it might make you feel the satisfaction of paying for your expenses of studies. But it is not always positive. Student loans drag you down all the while ever since you start your career. The investment comes up with many drawbacks, and you would want to get rid of it as soon as possible.
The loans seem like a burden to a person who has just started earning and paying his bills and rents for the first time. It is not an easy task to manage the finance all well since the first time your pockets get filled up. With a student loan, sometimes it is not even much clear about terms and conditions to many people. You must know, you cannot get relaxation from paying the debts in any case possible, also if you are bankrupted you have to pay the mortgage! If you have to pay it, no matter what the circumstance might arise, you might better do it and get done with it as quickly as you can.
There are few tips given, what you must do, to pay the debt quickly:
You can spend more than the amount you ought to pay each month. The more you would pay, the less interest you would have to deposit. Suppose, according to the EMI you have enrolled, you have to pay fifteen thousand bucks each month, try paying twenty thousand dollars each month. That way, you are paying the debts quicker and saving the interest amount. You might not have to double or triple the pay, but even such small extra paybacks save you a lot of amounts.
You can pay the extra amount in a balloon go whenever you can. There will be many times when you would get some bonus on casual occasion, or you might have a fund deposited and supposedly get the amount in bulk every year, or your grandma sent you a birthday check. You can pay that amount altogether to the bank. This would pay off when you have to pay lesser interest.
You might consider refinancing your loans. Refinancing the student loan is a very popular exercise. You can take credit from some private lender at lower interest rates and pay the student loan altogether. This way, though you would still have to pay the debts at least the extra amount you had to pay as the interest amount would be lesser.
Personal loans, indicative of its name are when financial institutions issue funds to applicants with the benefit of repaying the loan amount in monthly installments. Moreover, such personal loans are not issued against any valuable asset, such as your household. Due to such a distinct feature, personal loans can also be called, unsecured loans.
What are the pros of such loans?
Availing personal loans does provide its fair share of benefits. For example:-
Instead of seeking credit amounts from a credit card, availing a personal loan lets the individual withdraw significant credit amounts from financial institutions, much more than what he or she can get from credit cards.
Since such loans predetermine the condition of repaying the loan amount in monthly installments, the EMIs or equated monthly installments tend to be much more budget friendly.
The interest rate on said personal loans is typically predetermined; however, interest rates do vary from one institution to another.
Another benefit of availing a personal loan is the applicant is free to decide the amount of time he or she would require to repay the dispersed loan amount. But a crucial aspect to bear in mind when determining the length of time taken to repay the amount is that the more time is received, the more likely you will be charged with a significant interest rate.
Loan applicants are provided with the freedom to ultimately pay off their entire dispersed loan amount at any time without being eligible to any penalty charges and fines.
Adding to the previous point, if the individual pays a significant amount, more than 8000 pounds in a time period of 12 months, the lender is eligible and most likely to charge compensation expenses.
What are the cons of such personal loans?
Legitimate financial institutions tend to charge a higher rate of interest as compared to other types of borrowing. This can be quite an obstacle especially when you desire to borrow a minor amount.
Since the interest rates can fluctuate, often in the benefit of the applicant, the loan applicant may tend to withdraw or avail more substantial credit earnings than he or she actually requires. This can increase their chances of availing excessive debt.
Since a majority of financial institutions in the United Kingdom don’t lend an amount less than 1000 pounds accompanied by repayment periods less than 12months, the borrowers are most likely to avail credit amounts much more than they can afford.
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