Managing
your finances is not a complex subject and does not require you to be a
financial wizard. However, the earlier you take your lessons on financial
management, the better it is for your financial future. Here we will re-impress
upon you the importance of few financial tips, which you probably might have
heard several times from your folks. Evaluate the need of implementing these
tips in your life and be consistent in your efforts to reach your financial
goals.
Insure Yourself
Even
before you start saving, have enough insurance cover for yourself which assures
you protection from the various vagaries of life. Expenses related to
unforeseen events can not only rob you off of all of your savings, but can also
put you in debt. So, even before you put money in your savings or investment
account think of buying insurance for yourself. Besides, most insurance
policies are likely to cost you cheaper if you buy them when you are young.
Spend less than what you earn
This
one is the most fundamental financial tip. To put it into practice you need
teach yourself emotional control and adopt a rational attitude. Delay buying
anything if you haven’t saved for it. Though using credit cards have their own
benefit, they can make you overspend. People hooked on to swiping their credit
card hardly realize when they surpass their monthly budget. So instead of
making any savings, they come under debt. You need to press it in your mind
that unless you are able to save money from your regular income, there is no
way you would ever be able to create savings or wealth. So make it a practice
to save a portion from your regular earnings. As you begin to earn more, your
ability to save will enhance. So next time you get your salary, remember these
wise words from Samuel Johnson “A man who saves and spends money is the happiest
man, because he has both the enjoyments”.
Start investing early
The
right time to start investing is now. The earlier you start, the happier you
are likely to be with your financial status in the future. The greatest
investor of all time, Warren Buffet made his investment at the age of 11.
However, he regrets why he didn’t started earlier! Warren Buffet made a humble
beginning to his career by buying six shares of a company, Cities Services,
which he later sold for a profit.
You
can either begin on your own, or rely on professional services for executing
your investments. When you invest your savings, it starts compounding. You will
be surprised later to find how the little money you had invested has grown
substantial.
If
you choose to invest on your own, nothing will pay off more than educating
yourself. Conduct your research and analysis before finally taking a decision
to invest in any particular investment instrument.
Mind
you, while we have so far discussed about financial investments, there is much
more to investment than financial investments. If you think investment in some
good educational course can improve your existing skills and help to advance
your career prospects, you must go ahead with the same.
Make sure you are paid for what you’re worth
Do
a reality check to find if your current salary is commensurate to your role.
Consider a job change, if you believe you are being underpaid even a thousand
dollars every year. Many people get spoilt by the comfort level they enjoy in
their current job and are reluctant to move. But, such people regret later in
life when they find it hard to reach their financial goals. So make sure you
remain agile and versatile, when it comes to taking up a job that offers better
money and superior growth prospects
