Personal finance is as much about HOW TO SPEND MONEY as it is about HOW TO SAVE AND INVEST YOUR MONEY. By placing these tips into your day-to-day life, you are certainly on a much better road to securing your financial future.
People who have successfully managed to pay off their debts and put away a considerable amount of money into their savings accounts all agree on one major thing - if your goal is to take charge of your personal finances, setting a budget, and sticking to that budget, will be essential to your success long term.
Make sure that you review your investments periodically to see if your investments are still suitable for your life goals. You might need to rebalance your assets if there have been any major life changes since the last time you looked at it. Keep in mind that every time you trade shares, you may be incurring trading fees, so think carefully before you just move a bunch of things around.
Think about starting your own business if you have free time on your hands (check out the article here). You could benefit from tax incentives and perhaps make a nice profit once your business is established. Look for an a business idea that corresponds to your skills and interests.
Buy quality items that you can resell later. If you need a crib or stroller, for example, then save money by purchasing at an online resale site or from a similar discount retailer. Once you are done with the item, sell it and get some of your money back. This works best with popular items that have well-known brand names.
You might be paying too much for insurance (see this article). If you want to reduce your premiums, you should think about raising your deductibles. Open a savings account and put money aside to pay these deductibles, if something should happen. You can keep your deductibles low by looking for discounts and not filing small claims.
Most companies no longer feel a responsibility to provide a comfortable retirement for their workers, so it is up to you to plan for your own future. With life expectancies increasing, covering the cost of retirement is more expensive than ever. Saving for your retirement years should be an essential part of your budget. Once you have paid off all the bills, and can keep yourself in good financial shape each month, then more money should be diverted to retirement planning.