8 Secrets For Mastering The Art of Money

We’ve all been there, working forty plus hours a week and it seems that no matter what you do you can’t get ahead and you’re still living paycheck to paycheck. You find yourself wondering if you’ll ever be able to get ahead financially. Here are eight steps to help you get ahead.
Start by setting definite goals such as getting a new car, saving up for your first home, or setting aside money for the future education of your children, or maybe going on a vacation. It’s easier to set aside money when you have a fixed purpose in mind. In order to have a solid plan an time frame as well as a certain amount in mind. Don’t forget to prioritize your goals. Next it’s time to calculate how long it will take, you do this by dividing the estimated cost by the number of weeks or months in order to figure out the amount you’ll need to save weekly or monthly.
Than it’s important to remember to pay yourself first. This can be harder than it seems especially if you’re living paycheck to paycheck with little or no chance to get ahead. Create a solid budget that follows all monthly expenses. After you figure out how to manage your optional spending you can switch that money into a savings account. For many people the idea that if you don’t see it, you won’t miss it applies. This means that if you have a small amount automatically transferred from your paycheck to a savings account you won’t miss it.
If you’re looking to invest than it’s important to have a minimum of three to six months worth of expenses set aside to see you through any hard times. By keeping that money where it’s easy to reach you won’t have to sell any investments when their prices are down, guaranteeing you can reach your money quickly. In order to figure out how much money to set aside in case of an emergency, consider your normal monthly expenses that could pop up.
If you’re trying to save it’s important to pay off any credit card debt. Once you’ve paid them off use them only for convenience and pay off the balance each month. If you’re someone that tends to run up credit card charges than it’s best that you get rid of the cards and use cash instead.
It’s also important to adequately insure your family. If there’s an unforeseen accident, illness or lawsuit it’s important that your covered so your not financially destroyed. When insuring your family make sure to cover only those financial loses that you’d be unable to deal with and remain financially secure. If you have dependents it’s important to have sufficient life insurance. If you need your employment income than it’s also important to have long-term disability coverage. Sufficient liability coverage on home and auto policies are also important. 
Buying a home is a long-term investment that comes with tax breaks. The interest on first and second home mortgages is fully deductible so that the government helps subsidize the property investment. The equit on your home can also be an awesome source of income for your retirement.
Does your employer offer a tax-deferred investment plan such as a 401(k) or 403(b)? Utilize it, a lot of the time employers will match your earnings, if not, no taxes are due on the cash earnings up until you retire and start withdrawing the funds.
Diversification of your funds is key to manage risk and maximize your return. Diversify and utilize the three classes of asset; cash, stocks and bonds. With any investment there’s a risk. Diversification lowers unnecessary risk by spreading your money among numerous investments.

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