One of the notions you may have heard in terms of finances, the higher your income, the more it’s easier to manage and save as there can be a lot or amounts to budget. However, that’s not the case, because the higher your income the same thing goes with your expenses.
On the positive side, no matter what income you’re at, it’s possible to easily manage and save. Follow these life hacks below:
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Create a budget plan
If you want to set up for a disaster don’t make a plan otherwise create one. Start by reviewing your income monthly or for an easier timeline, bi weekly. List out your expenses and include your savings, this way you will be able to see the whole picture if you have enough budget to spend or you have expenses that are unnecessary.
You may use a spreadsheet or there are already available mobile applications that you can install that can help you create a plan. For longer term plans that can provide your family with peace of mind, consider these PHP agency reviews from agents and industry insiders that offer unique insights into life insurance.
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Build a buffer
Don’t forget to include in your plan in building an emergency fund. This will be your accessible fund incase of emergencies. Make sure this is untouchable funds except it is for emergency purposes only. Six month worth of living expenses is the goal but when you are starting just focus on being able to set aside how much you can for this fund. Although this will be for future use, you’ll not regret having this fund especially when life happens, you or someone from your family get sick, your car breakdowns, and other unforeseen events that may rise up and will put you in a position of financial crisis.
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Automate your payments and savings
To avoid temptations in using your allotted budget, automating your payments or savings can help. Check out If you have the options to enroll your biller in auto debit for automatic payments or even auto transfer your savings to your savings account
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Credit cards is either your friend or your enemy
Every area of your life including credit cards needs discipline in using. If you are using your credit card to buy things that you have enough budget to pay for then go for it. If not, your credit cards can be your nightmare. Make sure you’ll be able to pay the full amount monthly and not just the minimum to avoid charges.
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Take Loans
Just like credit cards, loans are either your friend or your enemy. There will be instances where it’s essential to take loans, especially when you are buying a house, getting a car or even starting a business. Even big businesses or rich people opt in taking out loans rather than getting from their own pockets. There are also loans for short term financial solution that you may want to check out. This loan can help you have additional funds that you need urgently that your emergency funds can’t fully cover.
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Invest
Once you are able to follow your budget, clean your debts and start saving, you may start building your funds for investing. Investing doesn’t require a big amount, but you will need a big amount of knowledge and research before diving into it. There are a lot of platforms that you can opt to invest in such as real estates, stocks, mutual funds, crypto even in play to earn games. You may begin investing with a small budget but really need to be cautious as there will be risks that you need to consider.
To summarize, always start with a plan then stick with it. Managing your finances can be tricky but it’s doable. Make smart choices that will prevent you from digging more debts but find ways how you can save and add cash flow. I always keep in mind these words “If I can be trusted with small things then I can be trusted with big things”.
