Dear Entrepreneur, Here Are 12 Smartest Things You Can Do For Your Finances

By Getrude Mathayo / Published September 28, 2021 | 1:03 pm




KEY POINTS

If you know where your money is going it will be easier to make changes if you need to. If you are spending more than you earn, you will never get ahead—in fact, it's a sure sign that your finances are headed for trouble.


Shilling

It is much easier and more enjoyable to take the income, the money we have earned and worked hard to receive, and spend all of it every month, purchasing whatever we want and not thinking about the future.

You don’t have to be an expert in the personal finance or have a big investment portfolio to be financially secure. It is important to understand the basics of financial planning, however.

  1. Create a spending plan and budget

If you know where your money is going it will be easier to make changes if you need to. If you are spending more than you earn, you will never get ahead—in fact, it’s a sure sign that your finances are headed for trouble. If you don’t learn to manage your money, then other people will find ways to mismanage it for you

  1. Pay off debt and stay out of debt

If you’re trying to save money through budgeting but still carrying a large debt burden, start with the debt. Once you’re free from paying interest on your debt, that money can easily be put into savings. A personal line of credit is just one option for consolidating debt so you can better pay it off.

  1. Prepare for the Future – Set Savings Goals

Saving money for your future is crucial. If you don’t set savings goals and steadily work towards them, you will have to rely on credit when times get tough. You might even need to work through your retirement years to supplement your small government pension

  1. Have an emergency fund

Ideally set aside 3–6 months of expenses, but that’s not realistic for many of us, especially given our current economic obstacles. Therefore saving just one month of expenses is easier to do yet still makes a big difference.

  1. Choose a reasonable rent or mortgage payment

Housing costs are generally the most significant part of everyone’s budget, as well as a major emotional investment. The search for the “perfect” home can easily extend your budget beyond what’s really comfortable.

  1. Never stop learning.

The world of finance is complicated, but money is a necessary part of life. You don’t have to understand everything, but in order to stay financially secure, you need to keep learning about tools and resources you can take advantage of to make what you have worked hard for you.

  1. Start saving early – but it’s never too late to start

Due to the magic of compounded interest, even when the rates are low, someone who starts to save for their retirement early doesn’t have to save as much as someone who starts saving later in life

  1. Do Your Homework Before Making Major Financial Decisions or Purchases

Many people will do more research before buying a TV than they will before purchasing an investment or buying a home. Make sure that you’re not one of them. Buying a home and saving for retirement are two of the biggest financial decisions most people will ever make.

  1. Distinguish Between Want and Need

Understand the differences between needs and wants and identify yours. Be able to say no when something doesn’t align with your financial goals, today and in the future.

  1. Work With Your Partner and stay married

If you are married or live with someone, communication and teamwork concerning your household finances are crucial. To save, you both need to be on board with your desires, plans, and resources. The best-laid plans without everyone on board will meet turmoil.

  1. Control Your Financial Future

If you don’t learn to manage your money, then other people will find ways to mismanage it for you. In fact, being pressured into making a hasty financial decision is one of the warning signs that the deal might not be as good as it seems

  1. Track the due date of your bills

Add the due date of each bill to your calendar. This will not only help ensure you never miss a payment; it helps you plan for these expenses in the weeks ahead.







More Articles From This Author








Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2021
  • January 2021 (182)
  • February 2021 (227)
  • March 2021 (325)
  • April 2021 (259)
  • May 2021 (285)
  • June 2021 (273)
  • July 2021 (277)
  • August 2021 (233)
  • September 2021 (271)
  • October 2021 (249)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (334)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (187)
  • 2019
  • January 2019 (253)
  • February 2019 (216)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (272)
  • June 2019 (250)
  • July 2019 (338)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (319)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (235)
  • June 2018 (177)
  • July 2018 (256)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (186)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (248)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (108)
  • May 2015 (116)
  • June 2015 (120)
  • July 2015 (148)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (207)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950