Whether you are a student, someone who has just started your first job or you are a professional with many years of experience up your sleeve, you need financial management tips to ensure a better lifestyle. Even better, you need financial security tips for rough patches and even retirement. Or at times when you need urgent financial assistance, you can always approach licensed money lender for temporary help.
While financial management is a personal aspect of life for everyone, there are some standard tips and tricks that can help most people irrespective of their lifestyle and their occupation. The following financial management tips are among some of the rules to live by and they should be practiced with your first cheque:
Begin Saving with your First Pay Cheque
While anyone can get carried away as soon as they receive their first salary, it is important that one keeps their feet on the ground and begin saving regularly from the beginning of their career. Regardless of how small the saving is, the practice only needs to be regular in the beginning. It is important to note that you also do not spend that money on an impulse and consider it an investment to your future.
Saving for your Children’s Education
This piece of advice is for parents who have recently had a kid or are planning to have one soon. Regardless of how little the child is, you should begin saving for your child’s college fund as soon as your baby is born. It may sound like very little saving for such a long term goal, these savings will become significant by the time your child is ready to apply for colleges.
Saving for Retirement
Similar to what we mentioned earlier, saving for your retirement is as important as saving for your child’s college education, everyone needs that security to fall back on. You may think that your retirement is a long way to come; however, it is sure to come around.
Therefore, you would want to be prepared for the time when you will not be earning like you do at the peak of your career. It is said that saving for retirement is more important than saving for your child’s college education because while your children can get loans, you will not get a retirement loan from anyone.
Be Strict About Not Spending The Savings
Strictly practice to not spend that money that you are saving for any purpose, be it your children’s education or your retirement plan. If you need money to invest in a new project or start a side business to gear up your income, arrange that money from a source other than your savings. Savings should be treated as a regular expenditure just like you would any other monthly expense.
Using Insurance Only When Necessary
Make sure that you do not use your insurance for any trivial reason, keep that money saved for actual emergencies when the situation is so dire that you have no other options available to reach out to. Making small claims can lead to an even greater risk of rate increase which in comparison is a more significant financial decision.
Investing In Cars
While everyone likes new cars as they speak of a better lifestyle, one needs to be careful to invest in an asset which continuously loses market value. Spending more money on a new car than you are saving each month is not an efficient investment. In the beginning of your career, buy used cars and stick to one vehicle for as long as you can.
To make better decisions about buying cars, a moneylender in Singapore can help you out here. If you choose to buy a new car, keep your finances in control by paying more money for down payment instead of increasing the interest that you pay on each monthly instalment. In addition to this, make sure that your monthly instalments are enough to help you pay off for the car as soon as you can. If you choose to pay smaller instalments, you are basically agreeing to more interest than the actual value of the car.
Use Credit Cards Smartly
When it comes to credit cards, the most important tip that anyone can give you is to ensure payments every month to avoid being stuck in paying high interest rates. While this will require you to limit your spending in some ways, you will see that it will prove to be an important practice for life. In case you cannot pay your bills each month, look for a low-rate card to limit the damage.
Read: 7 Major Reasons Not to Get a Credit Card
Mortgage Decisions
Home ownership is a decision that should make you think in depth about the investment you are about to make. If currently, you are unable to afford a standard lease of 30-year mortgage on a house then instead of getting yourself into deeper debt, you should take some more time and improve your finances. This calls for making the right decision on the mortgage rate about the house that you plan to buy. To have all your queries about financial management answered you can also discuss your plans with a moneylender in Singapore and they will be able to guide you better.
If you aim to live in that house for a shorter duration, then a hybrid of five-year could be a better decision over a standard 30-year fixed rate. Have a rate fixed for the length of duration that you aim to live at that house during the initial stages of fixing the rate. It needs to be mentioned here that before you opt for a low rate mortgage you need to consider whether your current income covers your other savings like your retirement plan as well as student loans or any other financial priorities that you may have. If you have enough regular income to support all your other financial obligations, then consider going for a low-rate mortgage.
Learn To Manage Loans Even Before You Borrow Them
This is in regards to any student loans that you may borrow to finance your education. Make sure you are not being carried away and decide that paying the loans back should be your first priority.
Borrowing enough funds that you can repay in 10 years of your professional life is a smart mindset to have. And before getting any loans it is important to have professional help at your back. A moneylender in Singapore would be an efficient person to guide you about financial matters including student loans.
Conclusion
The above-discussed are some of the financial management tips that will ensure you have regular savings for your retirement, further education and a flourishing lifestyle.
