Improve your personal life -Here are a few things you can do to improve your personal life. One of the best things you can do for yourself is to practice self-care.
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1. Know your current financial situation.
Before you make any plan to save for any activity, be it for your children’s education, retirement or buying that dream home, you need to know where you stand financially today. If you do not know how to do financial planning, then you may have to go to the trouble of getting a financial planner. Hiring a financial planner can save you a lot of money if you know how to do financial planning.
2. Save regularly.
Cultivating the habit of saving is a good quality. You never know when you will desperately need that extra cash when unforeseen events like job loss or a loved one becomes ill requiring a lot of medical care due to high medical costs. As a guide it is important for you to keep aside 3-6 months of your current salary to meet emergency needs.
3. Control your cash flow.
No matter how rich you are, you should be able to control your cash flow. The simple rule is that what comes into your pocket should be greater than the amount that goes out of your pocket. You need to know what is giving you income and what is costing you.
4. Cut down on your expenses
Start by tracking your daily, weekly and then monthly expenses. Find those expenses that are not necessary and eliminate them. A good example of this is paying for magazine subscriptions that you don’t read. When you’ve identified all of these items that aren’t worth your dollar, you can cut your expenses by 25-30%. It is advisable to have only one credit card so that you can track your expenses better. Make sure that you pay off each credit card invoice in full by the due date, before it turns into an unenviable loan.
5. Review your loans
As a rule, your debt load should not exceed 30-35% of your gross income. Gambling and vice are good candidates to land you in debt. Bad money management can also land you in debt even you win 2 million lottery or inherit huge wealth from your relative.
6. Be frugal but not stingy
Buy stuff only if it gives you good value for your money. It is wise if you know when to buy something of quality and pay a premium versus when to buy something less branded but still serves the same purpose as a branded item. If you always choose items based on the cheap price, the item may fail in a short time, causing you to buy another, costing you more than you originally envisioned. You will also be labeled as a miser, unwilling to spend money when it is absolutely necessary.
7. Review your investment portfolio
If you have investments in stocks, mutual funds (unit trusts) or multiple funds, you would want to review them regularly. Your review period can be quarterly, half-yearly or annually. For example, when you have done your quarterly analysis and find that the company stock you have invested in is not giving your targeted returns based on financial data or outside interference, you can move that stock to an outperformer. Would like to replace from stock.
8. Educate Yourself Financially
There is a wealth of financial information out there and it’s free when you surf the Internet or go to your neighborhood library. You can attend seminars, read books, read newspapers and listen to audio tapes which are some of the ways in which you can gain more knowledge.
9. Be Generous
There is a famous saying “You get what you pay for”. When you are generous, how the spiritual forces know it and reward you many times over. When you give, there is a natural tendency for the other person on the receiving end to want to give back to you.
10. Pay yourself first
Before you pay off all your monthly expenses, you should get in the habit of paying yourself first. If you have a day job, when it comes to payday, you can start putting 5% of your salary into another bank account. You can gradually increase this percentage when you have more take-home pay or feel that you deserve more rewards. Many people pay themselves last. By the time they pay the other expenses, they will have nothing to pay themselves.
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