subject: Financial Planning Tips You Might Have Overlooked [print this page] The year is about to end and for most (if not all) of us it means new beginning new challenges to face, new financial progress to look forward to. It is good to start the New Year right and you can do it by establishing a financial direction. Good financial planning is the key. I have here below some ideas on how you can improve your financial health:
Spend less than what you earn
Of course there are times that you crave for something to the point that you unconsciously spend more than what you earn in a period of time. But remember to be cautious always and be aware that you have financial limitations. If you are able to spend less than what you earn in a period of time, you will realize that you still have something left that you can save. Try to save 10% of your monthly income and stick to it and you will be amazed by what you have saved at the end of a year.
Examine your budget list
Why it is so important to examine your budget list? This is so that you are able to determine whether all your expenses are necessary or not. Scan through your budget list and cross-out those items which you think not so important whether they are for home use or not.
Be a responsible credit card user
Whether you are shopping online or going out to a mall to buy some stuff be a responsible credit card user. Others suggest that if you are going out for shopping, it is better to leave your credit card at home and bring cash instead. In that way, you will not be enticed to spend too much to the point that you almost reach your credit limit in a given period. Again, spend not more than what you earn and be happy with that.
Pay your bills on time
You have to pay your bills (electricity, water, and phone) and other financial obligations on time for a simple reason to be able to avoid penalties. Small or big penalties when accumulated over time become a big chunk of money put into waste.
Establish your financial goals
How do you see yourself 10 years from now - financially? It is always inspiring to work day by day if you have something that you want to accomplish. You can plan how much you want to save out of your monthly income and how much you want to invest out of it to something that is income-generating.
Above are some financial planning tips that you might have overlooked; simple but effective for many people. Why not try it for yourself and assess if they work.
