How To Master Your Money For Financial Zen
Financial wellness – it’s a good goal.
Not only does it give us spending power, but it also provides peace of mind. Because if there is one thing that’s guaranteed to keep most people awake at night, it’s the thought of debt. Especially a debt that keeps rising as more and more interest is ploughed on top.
So, how do you get to this financial health nadir? Well, when you break it down into a series of steps (a full breakdown of steps is available to read for free here), it really isn’t that difficult to achieve at all. Especially if, after a while, your new financial routine becomes a way of life (do it for long enough and you don’t even have to think about it).
Believe In Budgeting
When your salary goes into your account each month what are you going to do with it? Spend it on that coat you’ve been eyeing up for the past fortnight on your way to work. Or maybe you’re going to use half as a down payment for your holiday? Before you even spend a penny of it, break it down into three, say some financial experts.
Use half of it to pay for everything you need right now, such as food, utilities, transport costs, etc. Another 30 percent can go towards that coat, deposit, or anything else you want.
And, finally, put 20 percent into a savings account or use it for paying off debts. Do this every month and it’ll help you beat the lure of impulse spending. You’ll also feel better about your finances, and yourself.
Plan For The Future
Keep your eye on the road ahead. Or, rather, think about the future. By putting away money now, you may be able to have enough for a deposit on a flat several years down the line.
A pension for when you retire is a great idea too. The sooner you start paying into a workplace or personal pension, the less of a monthly balance you’ll have to contribute as you age. And, again, if it is taken off at source so that it becomes a monthly habit, you won’t even notice that it’s gone.
Putting money into a monthly savings account is ‘a must’ too. That way you know that if the worst happens, ie you get made redundant, then you can concentrate on getting another job, rather than worrying about how you’re going to eat that week. Most financial experts advise having the equivalent of at least three months’ salary in savings. To make this goal easier, you can also try alternative ways to make free money, like passive income apps, that could effortlessly add to your savings without needing much attention.
Get A Good Credit Card
Find a credit card that works for you. What we mean by that is, one that provides benefits you are sure to use. There’s no point in having one that offers free travel insurance abroad if you prefer camping at home.
Some cards offer discounts for dining. But again, if you’re not the type to frequent restaurants, then what’s the point? If you’re a student then a card that gets you money off in certain stores you use is great. Cashback cards are great – provided, that is, you always pay off what you owe at the end of the month. Otherwise, the interest you pay will block out any money rewards earned.
Need to make a big purchase, such as a bed or a bike, and want to pay back over a number of months? Then a zero percent interest card may be your best bet. Just make sure you pay off the debt in time though (usually six to nine months), otherwise your interest payments are going to go sky high.
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