Money management as complex as it sounds, is a very important aspect of your financial planning, for a safe and secure future and for managing finances well. Sharing some money management tips for a secure future, which are based on readings and experiences shared through social media. Money management begins as early as we start getting pocket money. How to efficiently and effectively invest your money so that it rewards ahead. There has been a simple tip, my brother shared with me when I started earning, ‘put the surplus to such an investment that your current money earns money for your future’
Always keep reserves and surpluses for the unforeseen. If we do not manage money efficiently then it will always be a life amid paying the bills. For a financially secure present and a safe future, money management must begin sooner.
Some Money Management Tips for a Secure Future are
1Plan your weekly and monthly budget
Always plan your budget well, so that you don’t end up missing some important payments. Also, when you plan ahead, you can ensure most optimal utilization of your money. Make it sure to plan it as realistic as possible.
2Save a part of every penny you earned
Savings are extremely important. There’s a rule of thumb for how much you must save, for every dollar put 20 cents to savings. You may not like that initially, but a few pizzas or burgers less will not only help you manage your money well, but also improve your lifestyle to a healthier and fitter one.
3Invest wisely
Investment is a very important part of saving. Whatever you invest today will be your rewards in future. A simple rule here is ‘don’t put all your eggs in one basket’ Device such a portfolio that your risk and returns are weighed at par. Don’t indulge in immediate returning options, risk may be too high. Just have a perfect blend of debt and equity also including assets at hand. Some part of your earning must go to investments and fix that part well
4Insurance
Plan for the uncertainties. Insurance not only benefits your kin in your absence or provide for medical costs, but also helps you to analyze your monetary responsibilities.
5Retirement planning must begin with your first job
Start planning for your retirement from as early as your first job. The earlier you plan the easier it gets. With your first job the responsibilities in terms family are comparatively less in most cases, so it is easier to shell out a few into the retirement corpus. Invest in mutual fund related retirement plans with the benefits of fitment of your equity purchase points.
6Relieve yourself off the debt burden
Debt or loan can be critical for money management. Try and pay off the debts early as possible. This will help you plan and manage money in a better way.
7Plan the expenses carefully
For larger expenses plan well, like purchasing a house or a car. Check the most viable option before putting your money into it. Don’t fall victim to over leveraging loans. Be wise and select the most optimal plan for you
8Be proactive
For all the upcoming expenses be proactive. It is easy to add up to $1000 from 6 months savings than arranging it at the end. Keep the planned expenses like vacation, holiday presents and others in mind.
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9Make a pool for unforeseen
It is advisable to keep some money for the unforeseen expenses like accident, illness, death or others. For these situations are never planned. It is easy to make a corpus for such unforeseen situations.
10Enjoy all the important moments in your life
Money management does not mean not spending on your little pleasures. There is a thin line between spending and over spending. Be sure to take note of that. A vacation does not mean everything ultra luxurious, when you don’t even have enough to pay your bills. Just be wise and chose your options accordingly.
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Some suggestions:
- Check your insurance coverage
- Invest in retirement plans as early as possible
- Keep a corpus for unforeseen
- Plan expenses ahead
- Save and reserve for the future
- Spend wisely
- Consolidate your debt
- Invest in both short term and long terms benefits
The above compilation on Money Management Tips for a secure future is based on readings and experiences over the years. These are shared to guide you into efficient money management and budgeting for happy and stress free life. Hergamut.com brings you deeper insights into things that matter to us. Keep reading and be sure to share it further.
Minu Manisha
