Saturday, 2 May 2015
Corliss Online Financial Mag: Tips to become financially fit
Following are few easy tips made by Corliss Online Financial Mag that will help you move forward toward financial security and make your dreams become reality.
Put aside time and energy to talk
The first step to finding common ground with your finances is to take time to talk about money. Define your values and goals together with your family and clarify the difference between needs and wants. Don’t wait for a financial crisis to happen.
It is vital to instruct the children about the value of money and how to use it responsibly.
Make a budget
With your established values, you are now ready to create a budget. There are some tools out there to get you started such as Mint or You Need A Budget (YNAB), but a Microsoft Excel document will probably do the job. Choose something that you are comfortable with and actually work for you. Set a time every month to check in and evaluate your goals as well as your progress. Make adjustments or improvements based on your situation.
Pay your debts
Lots of individuals in debt feel trapped and bogged down, but always remember that even small steps can have a dramatic effect on financial stability. Just pay small amount above the minimum payment each month. As little as $15-$25 more could help you pay off a credit debt five to ten years sooner.
Use a flexible spending account
Assess with your employer. Several companies allow you to take money out of your paycheck pre-tax to pay for expenses such as health care. However, make sure that you only take out what you need.
Save for retirement
Due to compound interest, your money increases dramatically over time. A small contribution now can mean larger returns later.
Prepare for abrupt problems
Consider the things that can have a huge effect on your life later on. Build an emergency fund, set up a life insurance policy, and open a 529 plan — defined by Corliss Online Financial Mag as a tax-advantaged method of saving for future college expenses that is authorized by Section 529 of the Internal Revenue Code — to begin saving for your children’s education.