The year 2013 has arrived and it is time for us all to plan our finances well. The resolution to maintain high savings, cut down on unnecessary expenses, and to stay ‘fit’ money-wise should be fulfilled this year. It is possible to manage your earnings and savings by following certain easy tips.
Start saving on a monthly basis:
You cannot save all your money in one go. Savings done at a fixed regular interval can accumulate to become a big amount. Make a habit of keeping aside a particular sum from your salary/ earnings at the starting of the money as a ‘savings’ amount. This amount will depend on your earning, the monthly expenses, and your lifestyle. However, once the amount is decided, then make sure that you would save this amount and refrain yourself from spending the saved money unnecessarily.
Keep a check on your credit amount:
Some people have a habit of borrowing money and not keeping a track of their credit amount. Even the credit taken from banks adds up to your credit score. When you wish to apply for loans or you seek insurance then this credit score plays a major role in the approval of such financial requests. Thus, this new year make sure that you keep a track of your credit score. Pay off your credit cards as soon as possible.
Invest in insurance policies:
Along with saving the money, it is important that you buy securities against the amount. Buying insurance policies will be of use when it comes to managing your finances. Always compare and then shop your insurance policy.
Maintain a weekly track pad to know how much you are spending:
Remember the old days when grandma used to buy groceries on Sundays and then write down all the products along with their prices in her little diary? Well, this oldest method is very useful if you wish to manage your finances effectively. Keep a note of what you are spending. That way you will be able to cut down on unnecessarily expenses. Also try to save more on your variable expenses (groceries, gas, electrical work etc).
Create an estimated budget and stick to that budget:
At the start of every month, create an estimated budget for yourself. Keep in mind that the budget should be realistic. It should be dependent on your earnings, your fixed expenses (home rent, school fees etc) and variable expenses (groceries, medical expenses, gas etc). Keep a buffer amount for emergencies. Once the budget has been estimated, make sure that you stick to this budget.
Apart from these tips, you can invest money in real estate, affordable health insurance or any other such venture this year to manage your finances.