[This is a guest post]
In today’s financial turmoil, we all have become financial worrywarts. We always worry about our financial security, especially after retirement. Unfortunately, we worry a lot, but hardly do anything anything about it, whether it is for the betterment of our retirement or paying next weeks grocery bill. Many people tend to live beyond their means and either lie to themselves about or hide it from their financial advisor, if they have one.
Many are losing out on a good night sleep because of the fear that they will be running out of money much sooner than they have to stop paying bills. Some get financial advice from family or friends, but that barely makes any difference in their spending habit. Rather it would be better if one consults a financial advisor and discusses on ins and outs of their financial status. However, it can be fruitful only if the respective individual actually listens.
No matter even if one doesn’t consult a financial expert, they can still manage their finances quite efficiently. All you need to stop thinking about how much you spend, stop worrying. Focus on the savings as a positive number and not your spending as a negative one. Find a great finance blog like this one and read! Get tips, advice, ideas. No website is going to change how much online shopping you do, but they might be able to help you shop smarter and save.
Here are some simple tips that you can surely consider for securing yourself monetarily and thus financial freedom.
1. Start saving now – Many people wait too long for getting their finances in shape. Don’t belong to that group. Start putting your savings on autopilot, perhaps you could stop using credit card and use cash for your daily expenses. It is evident that people spend less while handing over hard cash than using credit cards, keep those pockets full!
2. Create a financial plan – Create your own plan instead of depending solely on a financial advisor. You can get help from different financial websites. You can save up to 15% of your income through a 401(k) plan. Don’t be late in taking advantage of the power of compound interests over years. But if this is not available for you, try Roth IRA, IRA CD or conventional IRA as your retirement savings instrument. Discover Bank offers competitive CD rates, you can opt for them. Set up automated contributions so that you don’t miss to deposit money regularly. You can also opt for a self-directed IRA that offers the same advantages of a conventional IRA. However, with the former you can direct your money in a wide array of assets.
3. Pay off existing debts – Perhaps the most important step towards your financial security is to getting rid of any outstanding debt. You must pay off your debts sooner and later so don’t put off student loans or credit card bills, they will never go away completely until you pay them.
4. Calculate your profit and loss – You will find a number of online retirement calculators. Use any to check whether or not you’re on the right track to reach your financial goals. Perhaps seeing a forecast which is somewhat bleak might motivate you to make some changes sooner than later.
5. Spend less – We belong to a society that tends to spend more than what is required. So it is always advised that you heed to your spending habit. Try to be as frugal as you can because unless you can start living within your means, you can never spend a financially secured life hereafter.
Sure money doesn’t buy happiness, but the absence of it from your worries will help more than you think. Not everyone is going to make millions but you can live worry free by simply making smart decisions, ideally at a young age.
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Photo from: jollyUK
It is important to pay off debts as soon as possible– always paying the minimum payments drags out the process and keeps the debts hanging over your head for much longer.