With commodity prices and fuel prices always on the rise, it is very important for one to manage his finance efficiently. Although there are plenty of books on this vital topic, the basics to holding a good financial status at all times remains the same. A few important tips that will ensure your financial security are:
Choose the Right Job
This might appear simple but it is something a lot of people suffer from. Know your assets well and pick a job that suits you and pays you for what you’re worth. There is no point in working for a huge multi national corporation if you’re being offered a pay check way below your grade in spite of you substantially contributing to the company’s growth.
Set aside a budget that is meant to be spent and ensure that you spend only from that source. Your position will never improve if you expend your budget source too quickly. Set yourself goals and always make sure you know where your money is going.
Tax paying time is always a hectic time. To minimize the strain considerably, keep monthly records of all your bills and allowances. This way, when it comes to paying taxes, not only will you know how much to pay but you will also have the funds to pay off the taxes without any problems.
Invest a part of your monthly savings in property or stocks or mutual funds depending on your sight of your future. Holding stocks is always a long term investment. Choose the right assets and plan it thoroughly.
Clear Off Your Credit Card Debt
It might be easy to buy items using credit cards but paying off credit card bills is something people do not do immediately. Thus, they end up paying a lot more. Use cash as much as possible and pay off credit card bills immediately.
Maintain a Savings Plan
Set aside around 5% to 10% of your salary for yourself in terms of savings. This will ensure a safe future even during rough times. The best thing is to have that portion of money directly deducted from your salary and put into a separate bank account.