5 Smart Tips to Be Money-wise When Buying Your First Car

Buying your first car can be exciting and scary in equal measures. After all, you probably worked hard, saving up all your hard-earned money to buy your first set of wheels. So, it’s only natural that you’ll be a little nervous about making the right decision.

Here’s a step-by-step guide to help you approach the process of buying your first car in a responsible way.

Step 1: Be Sensiblewith Your Choice

Sure, cruising down the road in a convertible will definitely be fun in the summer, but what about the winter months? When picking a car, be very clear on all the practical must-have aspects. For instance, if your student who regularly has to lug around project material and other stuff in your car, you will need a vehicle with more storage space. Similarly, if you’ll often be driving within city limits, look for a car that will give you good value for money as far as fuel costs are concerned.

Having your priorities right will ensure that you don’t end up having buyer’s remorse. In short, avoid getting sucked into temptation and make a practical choice instead. Two of the most important questions to ask yourself when buying a car are:

  1. What is the down payment? The higher your down payment, the lower your monthly payments will be. So, aim to put in a sizeable chunk as a down payment.
  2. What is the monthly payment?  Write down your monthly income and deduct all monthly debts and other expenses from it. The amount you’re left with is how much you can afford to pay every month for your car.

Don’t forget to take into account other associated costs of owning a vehicle, such as taxes, registration, insurance, fuel and maintenance costs. It’s also a good idea to consider the future. So, keep in mind that you will be selling your car sometime down the line. And when that time comes, how easy will it be to find a buyer for your car? Although, it’s not too much of a concern if you think about it. Even if your car is in bad shape after a few years of use, you can sell your scrap car for cash to a car wrecker. So, that’s always an option.

Step 2: Get Your Financing Sorted Out

It’s always a smart idea to get your financing preapproved by a lender before you approach a dealership. Talk to different lenders to find which one offers the best rates. Going into the dealership with your financing sorted out will give you the upper hand when it comes to negotiating the sale price.

If you’re credit history is lacking, that can pose another problem when it comes to financing. Lenders typically rely on your credit history to determine whether or not you’ll be able to repay the loan as stipulated. To build confidence and gain lenders’ trust, it is a good idea to build your credit history six months before you start hunting for a car. That way, you’ll have a good credit history to show to the lenders, and they can conclude that you’re a responsible individual who pays your bills on time and does not default on payments.

Step 3: Don’t Skip Out on The Test Drive

Always test drive the car before signing on the dotted line. Have a checklist handy and make sure you look for each item on the checklist when you take the car for a spin. Make sure you drive for at least ten to fifteen minutes to get a good feel of the car. Check the headlights, wiper and other features to make sure they’re all working properly.

Step 4: Have the Car Inspected by A Mechanic

If you’re buying a used car, then this step is crucial. No matter how good the car looks and how smooth it feels when you drive it, there could be some hidden problems or issues that you just won’t be able to spot. So, have a trusted car mechanic take a look at the vehicle. A mechanic will be able to quickly identify any potential problems that could end up being expensive for you.

Step 5: Negotiate the Sale Price

Car salesmen tend to be charming and know just how to manipulate you. So, be smart and always negotiate the sale price – and don’t lose your head. Just because a car’s monthly payments are affordable, doesn’t automatically mean that you can afford that vehicle. Take your time to make a decision and don’t get pulled in by their tactics. A common tactic that car salesmen employ is to instill a sense of urgency in the deal. They’ll say things like “This car’s hot property. If you don’t buy it now, someone else definitely will.” But resist the urge to jump into the deal without thinking it through. Even if the car does get sold, it’s not the end of the world. There are plenty of good cars out there and you’re bound to find a great deal if you do your research and make an informed decision.Buying your first car can be a nerve wrecking process. But going into it with all the necessary information at hand and being aware of the local car market will help you navigate better and buy a first car that you can be proud of – even if it’s an old one! You can always get Cash for old cars Brisbane by selling it to a Car Removal company when it’s time to let go of it.

Why is Business Financing Important

The strength and reliability of the bussiness depend on the availability of funding and the competencies used. Financial wealth can do miracles, and scarcity can destroy even a well-established firm. Finance increases the strength and profitability of work. Increases the company’s resilience to losses and economic crisis. The following headlines explain why is business financing in Singapore important.

– Starting a business: Financing is the first and most important condition of every company. This is the starting point for any business or industrial project, and so on. Whether you have established an exclusive legal firm, a partner company, company or charity, you need a lot of funding. This is equally important to search for for-profit and nonprofit activities. This is equally important for a multinational organization and a free clinic.

– Asset Purchase: Financing is needed to purchase different types of assets. Even if the loan is available, the advance payment must be made. First of all, financial resources are needed to purchase fixed assets. These fixed assets consume a large part of the initial investment of the entrepreneur, so you may encounter liquidity difficulties in managing the day-to-day affairs of the project.

– Development: Business is always subject to change. New innovations and the emergence of new technologies replace old technologies from the market. In order to stay in the market, it is essential that the company be well equipped with all new tools and techniques. It requires funding. New technology is always expensive because it is better than others. Therefore, you need financial resources to purchase new equipment and manage your business.

– Information Technology: IT has changed the geography of the commercial battlefield. Local markets nowadays extend practically to newcomers in the world. The whole world can be your client or competitor. To face such strong competition, IT is needed. Computer skills and competencies can perform miracles. But the crucial factor is finance. It is essential to include expensive IT products in business.

– Resource Management: financing is critical to effective resource management. Resources include capital and human resources. Maintenance of machinery, equipment and staff training requires funding. Create new industrial units, expand production capacity, and employ well-trained skilled workers – everything these factors can lead to huge incomes, but first, they need financial resources to start.– Stock Investments These investments are those aimed at obtaining a large stock of raw materials at hand. Bulk purchase of raw materials is profitable, meaning you can get a discount on your purchase and there is no risk of stopping production. Thus, companies usually have a large amount of inventory and raw materials. However, such an investment can only be made if the company has sufficient capital or financial resources to perform its daily activities easily, in addition to substantial resources.

How Metatrader 4 FOREX TRADING Platform is Vital For You

There are many reasons of why and steps on how to decide on MetaTrader 4 marker. Naturally, one must gauge the upsides and downsides between choosing the right stage. One of the better personal preferences of the MetaTrader 4 is the fact that specialists frequently enable it to be downloaded for little or nothing. Honestly, merchants do not need to make a live record to check that as specialists give them free demonstration represents trials. While using a demo account, stores can have a hands-on test on the merchandise minus the bothers of starting live accounts.

MT4 Shows You A Clear Picture of Market

The MetaTrader 4 trading system is a selective Forex currency trading door that helps an array type of outlines including, fire, and series and club diagrams. These prime graphs will be all together redesigned, and installation is showing various time allotments for a number of currency pairs. Also, specialists will normally offer useful newsfeeds to traders from sources. The info will be straight transferred to the trading system for the comfort to revise energetic stock traders, henceforth so that it is a standout between the much easier to use programs accessible.

MT4 Experts Are Vital

In case you are thinking about how precisely to choose MetaTrader 4 pointer, you don’t have to worry since the specialists gives a development of trading markers choice to be utilized on the level. The alternatives may envelop both advanced trading and standard indications. The markers can be joined merely into the diagrams and get opportune synchronized improvements. In the event the advanced version of signals is occupied from the sellers, they could be downloaded through the web. Agents can create the project on the stages and begin their trading good deals.

There may be very some quantity of reasons why sellers exchange with this gold coin trading stage. One of these is just how that a seller can build-up an individual tool to execute programmed trading or complete study of the business enterprise sector; this level accompanies a program writing language furthermore a level that is fit for creating program recover language.

There is a significant factor about the merchandise which is the capability to exit and go into the exchange as suggested by requirements for productive investments. In this manner, the supplier is less stressed, which helps the broker to operate the winning aspect of the trade. Another perspective is that, after the product owner arranges the parameters, it can research the business enterprise sector and produce the rundown of conceivable effective trades even though you are away. But always devote mind that it is only a list.

Trading or trade decision is up to the broker rather than MetaTrader. Yes, the vendor has control over exchanges. There exists yet another alternative: you may use MetaTrader with a Forex trading program to aid your probability of making any gain. The robot can do the trading for you. Indeed, as clarified time lately, this is a creation of man’s marvelous personality. Along these lines, this creation also offers restrictions that happen to be, and the execution is merely in light of the variables as well as your decision to operate.

Techniques for Picking the Finest Foreign exchange Signal Provider

With a variety of forex signal providers available these days, attempting to become difficult to choose the best provider. Overall success is one factor that can’t be overlooked while choosing a trading signal provider. However, there are several elements which need to be considered before selecting a forex signal provider. Why don’t we look into some of the tips which can help you pick the best forex signal service provider?

Signals have to be profitable:

The chief factor to bear in mind is profitability. You must check whether the forex signals are profitable or not. Most of the forex signal providers claim to provide profitable signals, but with no verified track record, you must not believe them. Bring out thorough research and conduct an in-depth evaluation.

Check for verified trading results:

You must check the trading results. A verified trading result will help to ensure the claimed performance is right. In this manner, you will be able to choose a dependable forex signal provider.

Guarantee the forex signals match your trading style:

It is imperative to comprehend your requirements. Choose the forex trading signal that suits your trading style. Check the number of trade signals which you can get from the provider in a day. You should know whether the service provider uses a short-term trading approach or long-term trading approach. The time horizon plays a critical factor in choosing a trading signal supplier.

Look for additional trading support:

Go through the forex signal provider’s website and look for the services provided by them. Critically examine for any type of additional support they offer. Several providers send weekly notifications, and some send month-to-month alerts. Choose the supplier based on your specific requirements.

Free vs paid service:

A person needs to choose between free signals and paid signals. Depending on your budget, you can pick the forex signal provider accordingly.

  • Free signals

Some of the providers provide the forex signals free of charge. You need to choose the forex signal provider based on your specific requirements and budget.

  • Paid signal

Most of the forex trading signal providers provide trade alerts on a month-to-month cost basis. Some providers also offer trading signals for a trial period.

Quality over quantity:

The high quality of the trading signals is an important variable which cannot be ignored. Make sure the forex signal provider you choose provide quality signals.

Some firms will need you to own specified permit definitely so you can also work as a financial adviser. Extra skills to propel you to success include being a good communicator, problem-solving skills, structured work processes and the capability to work under pressure.

While it is not required to continue doing your own research, it is essential that a trader is very familiar with their resources before subscribing to binary options signals. This particular allows them to use the tools expertly as well as knowledgeable.These are a number of tips which can help you choose the best forex signal provider.

Best Picks: 11 Personal Finance Books That You Must Add To Your Current Reading List

What are the personal finance books you’ve ever read, is it on the list?

One of the essential skills you need to learn when it comes to money management is personal finance. We all look for guidance to get started, with handling money and look for ways to multiply it.

The real challenge comes when you walk into a book store to pick that ideal book from a heap of personal finance books. Essentially, all the personal finance books would offer a piece (or more) of advice on finance management. But not all would suit your need and get you started with personal finance.

If you’re a beginner with personal finance, then you would be looking at the books that are easy to read and get you through the basics of financing, best ways to save money and clear off debts.

So, we give you a list of best picks, to begin with, your journey on personal finance and get your feet rolling with finance management. This list is not just for beginners but also can be useful to brush up your basics and explore alternate ways with personal finance.

11Personal finance books to get started with personal finance:


#1. The Automatic Millionaire

By David Bach

This book is about how a simple step “Plan” can make you a millionaire even when you don’t have a big salary or a carefully organized budget. The author throws light on where you’re spending your money unconsciously and how with little planning you make be financially independent.

#2. Thinking, Fast and Slow

By Daniel Kahneman

This book is about how your decisions influence your finance management. The author takes you through what makes you go with the decision and how things can change.

#3. The Millionaire Next Door

By Thomas J. Stanley and William D. Danko

This book is like a beginner guide with instructions on personal finance and is a good starter for those who’ve just begun with finance management. It highlights the 7 common traits that all millionaires have and how you can adapt those.

#4. I will teach you to be rich

By Ramit Sethi

This book is about the 4 pillars of personal finance and is a 6-week personal finance program for people who are 25 – 35 years old. This is a good read for those who are ambitious but are clueless about finances.

#5. The Total Money Makeover

By Dave Ramsey

This book is a great starter guide that talks about all the basics of personal finance such as how to be debt-free, savings, how to invest, getting out of mortgage and be financially secured.

#6. 7 Money Rules for Life

By Mary Hunt

This book is about how to get control over your money and become financially stable. It highlights the 7 rules with practical application and it works well irrespective of your income and current financial situation.

#7. The Money Book for the Young, Fabulous & Broke

By Suze Orman

This book is for the young people who’re in their 20s and 30s, struggling to balance their finances and deal with financial issues. It offers a set of solutions to everyday problems such as student loan, credit card debt, insurance etc.

#8. Women & Money

By Suze Orman

This book is about empowering women to deal with financial problems, financial security and how to be financially strong.

#9. Think and Grow Rich

By Napoleon Hill

This book is a combination of an inspirational and practical guide to success. It highlights the common principles followed by all successful people.

#10. Rich Dad Poor Dad

By Robert T. Kiyosaki

This book highlights the main difference between how you work for me and how to make money work for you. It highlights what the rich people teach their kids, the poor and middle class doesn’t. It is one of the best books on personal finance which goes on the “must read” list.

#11. The Investment Answer

By Daniel C. Goldie &Gordon S. Murray

This book highlights the 5 important decisions and choices that every investor needs to make for better money management and have a financially secured future.

Summing up:

The List is even longer for you to read, but you will be able to get the results when you start with one. Once you’ve read the book then put it in action and follow the rules. It might be difficult to start noticing immediate results. You will need to follow the routine for a few months to see the difference in your financial situation. Keep tracking your progress to see how it works for you. Pick one out of the personal finance books from the list and add it to your reading list.

Simply avoid 5 Money Mistakes to have a financially secured future

Every year we all make a lot of new year resolutions and mostly take it to the following year & it goes on. And the same goes with our money handling habits, we think of not committing the same money mistakes but still, fall into it. So, what’s the catch? How should we refrain ourselves from falling into the potholes of bad financial habits?

Avoiding a few money mistakes can change the financial perspective of your life. There are a few things that you can do to simply create a balance between your lifestyle and finances. In short, by simply cultivating a few good money habits you can change your world upside down and have a financially secured future.

Let’s give a new shape to our current financial situation by simply avoiding 5money mistakes. And what you get in return is more savings, better spending habits and most importantly a well-secured future.

5Money Mistakes to avoid for a better financial future:

#1. You don’t have a financial plan

One of the biggest money mistakes that drip your future is not having a financial plan. You might have a house, car, children, loan payments etc. and without even knowing you might delve into your savings or borrow more money causing a financial threat to you and your loved ones.

A financial plan should consist of your income, your expenses, your savings, and your insurances. You should have a track of all the expenses you make be it for a penny or more so that you will know where your money goes at the end of the month. A financial plan would help you to prepare for the costs (both expected and unexpected), look for investments and options for extra-income as well.

#2. Never save from what is left after spending

If you want to have more savings, then the first step to take is stopping saving from what is left at the end of the month after you spend. Create a category in your monthly budget as “savings” and start contributing a fixed amount every month as soon as you get your paycheck. To save more efficiently, you can create financial goals to save for. Also, you can create an automatic transfer every month from your checking account to savings account. Put a certain amount every month in your emergency fund.

#3. Never put off paying your credit card debt

Another important money mistake to avoid is delaying your credit card debt. One of the best ways to avoid credit card debt is by creating a calendar and stay on track with your credit card payments. Never put off paying your credit card debt as you’ll end up paying the interest plus the late fees. Credit card if used wisely can be of great help. Use your credit card for the amount which you think you can repay within the timeline. Additionally, limit the number of credit cards you have.

Most of us use a credit card in case of an unexpected expense. So, if you start saving for an emergency then you can avoid falling into credit card debt.

#4. Never spend beyond your limit

Your money habits define your choices. When you understand the thin line of difference between your needs and wants, you will be able to make the right financial decisions.

Following are a few better spending habits:

• Create a shopping list to avoid impulse buying

• Switch to bulk purchases for things that can last longer

• Buy seasonal fruits and veggies (both healthy and economical)

• Collect and use all coupons, discount vouchers etc.

• Wait for the year-end sale to get better deals

• Cut down on gym memberships and look for alternate free options like yoga, jogging etc.

• Cook your meals and pack it for lunch

• Try out local cuisine at near-by eateries

• Look for free recreational activities such as a picnic in a park, open theatres, community programs etc.

#5. Never ignore your insurances

The thought about sickness, death, loss of property etc. can be disheartening but you need to think of protecting your assets, yourself and your loved ones from such events. If you have a family and dependents, then you need to take a step beyond savings which is insurance. You need to consider the following insurances such as life and disability insurance, health insurance, property insurance etc. to protect yourself (your family) and your assets.

Summing up:

Life is as simple as you make it. There are always some golden rules to follow especially when it comes to better money habits and a few money mistakes to avoid. You can make a huge impact on your financial situation by simply cultivating better spending habits and refrain yourself from making the 5 money mistakes mentioned above.

How much do I need to retire?

How much do I need to retire? This is the first question that someone asked when I started the discussion about retirement savings. Most of us are unsure on how to start saving for retirement and how much we should stock up for a comfortable retirement. There are a lot of factors that would influence the retirement savings amount such as your current income, your monthly expenses, and your plans after retirement etc.

Investing in your retirement savings is simply circumstantial and it depends on 3 things: time left for your retirement, how much you can save and how much risk you can afford. There are many ways in which you can save better for your retirement. But before you start planning on your retirement savings; let’s figure out the answer to the question: “how much do I need to retire?”

Let’s get to the math!

The expert’s advice is that you should aim for replacing at least 70% (80 to 90% for a safer option) of what you’re earning now (pre-retirement income) through retirement savings and social security. In order to get the exact figure, you can use online retirement savings calculator to do the math.

Now that you know how much you need to retire and have a comfortable retirement; it’s important to look for better ways to boost up your retirement savings fund.

3 ways to boost up your retirement fund:

A lot of people just stop at the point where they are yet to figure out “how much do I need to retire?” and the others stop at “how to reach those savings with this current income?”

It doesn’t matter how many years are left for your retirement or what is your current income, you can still find ways to boost up your retirement savings by following these 3 mentioned ways.

#1. Switch to smart saving option

One of the best ways to boost up your retirement savings is to make the smart investment. There are various options and you choose based on your risk tolerance. There are basically 2 killers that can spoil your investment plans, one obviously making a bad investment and second is the fees. The first one is difficult to predict but the second one depends on your choice of investment and the expense ratio.

For instance, let’s say if you invest $10,000 as initial amount plus $5,000 per year for 30 years with returns 6% annually and has an expense ratio of 0.1%. At the end of 30 years, you will have $443,598 and for an expense ratio of 0.75%, you will have $389,240. And that leaves a difference of $54,358 which is a huge chunk. Higher the expense ratio, lower the returns you get. So, switch to the smart saving option by choosing the investment based on the maintenance fee or expense ratio.

#2. Look for tax reduction wherever possible

Most of the retirement plans that your workplace offers such as 401(k), 403(b), TSP etc. comes with specific tax benefits that you can avail. The traditional 401(k) plan comes with a benefit where your taxable income reduces by a dollar for every dollar you put into the account.

Thus, if you save $19,200 in a 401(k) account then your taxable income will be reduced by $19,200. That implies you stock up all the money you put and have a handful of savings. Simply, it means you don’t have to pay any taxes on the amount you save into the account that year until you withdraw it when you retire. There are other plans (Roth, IRA) as well where you pay taxes every year instead of paying it at the time of your retirement. You can learn about both the options and choose what suits your needs.

#3. Make use of the employer match fund

When you join a workplace, one of the things that wake up the thought of retirement savings is the 401(k) plan offered by your employer. The thing is that you won’t really see the difference when a part of your income goes to your 401(k) every month until you enjoy its benefits in your retirement. The additional incentive that comes along with 401(k) is the employer matching plan. In this, the employer makes a contribution to your account on top of your savings. For instance, if you put $3000 annually in your 401(k) then your employer would contribute $1500 additionally. This would help you to boost your retirement savings in the long run.

Summing up:

And now you would be able to calculate the answer to “how much do I need to retire?” Thus, you can easily move to the next step of boosting your retirement savings fund. One thing you need to remember is to add your retirement savings as a priority when you plan your monthly budget.

5 Tips to overcome your mid-life financial crisis

The mid-life crisis is not a new term that we hear. It strikes on the unexpected occasions and makes you do all bizarre things such as downsizing your wardrobe, switching to a budget car, moving into an economical lifestyle etc. Especially with the financial crisis aspect, it can turn into a nightmare. Switching from a carefree lifestyle to take-up financial responsibility for the future can be a bit stressful.

The Statistics:

The latest Real Retirement report from Aviva shows that 25% of people aged 50 & above are undergoing a mid-life financial crisis. The reason is that they are unable to find room for savings with the current cost of living. Most of them relying on external factors to support their retirement expenses. The worst thing is that most people don’t know when to start saving for retirement and instead rely on options such as downsizing, lottery, inheritance etc. As with many, the struggle goes with deciding how much they need to save for a comfortable retirement.

Mid-life financial crisis can be avoided simply by being prepared with the right plan at the right time. There are 5 important tips for following that will help you to overcome your mid-life financial crisis.

5 Tips to beat the mid-life financial crisis:

#1. Create a budget with financial goals

The first thing to avoid a mid-life financial crisis is to be prepared and have the right plan. Planning begins with a workable budget. With the current cost of living, if you don’t find room for savings then its time to modify your budget. Create a budget by categorizing your income, expenses and a separate tab for your savings. Your budget should consist of financial goals to save for. Your retirement savings should be on the top of your financial goals list.

#2. Retirement savings: Your top priority

Every money saved during youth will reap great rewards during your retirement. It is always important to save small amounts for your retirement. A study says 1 in 5 people have retired without any retirement savings.

Inflation could have been a reason, or you would have spent your savings on kids or family. Whatever be the reason you should set aside some amount for your retirement. That is when you are going to need your money the most when the energy has drained out and you don’t have a means for money to multiply your savings will come to your aid.

Start saving money for your retirement right from your first-month salary. Money saved early can bring in huge returns.

#3. Start filling your pension pot today

A filled pension pot is one of the best solutions to save yourselves from old age financial crisis. Government ensures that employers enroll you into pension schemes and they make meaningful contributions towards your retirement funds. Although you have an option to opt out of this plan, I strongly recommend not to do so. If you have opted out, I urge you to reverse your decision.

With about 30% of retiree’s dependent on the state pension, it is very important that you fill your pension pot to wade through the old age financial crisis.

If you are about to retire and you still have some time left in you, please ensure that you save small amounts towards your retirement. Plan your retirement needs to early to stay away from financial crisis.

#4. Don’t forget your asset (property)

Assets are an investment for a lifetime. They yield better results as they age. If you are holding and you are holding considerable equity, it is time for you to let go a few of it to have a fruitful retired life. It is always difficult to let go something which is dear and when it is an asset where you and your kids of spent their lives, it is always special. But nothing is special compared to a peaceful retired life.

#5. Never lose your calm

It always gives a shrill through your spine when you think about your retirement life. One is the financial crisis and the other is the emotional crisis. It is always important to stay calm and plan the things you are going to do during your retirement. Visiting a beautiful country to celebrate your retirement isn’t a bad idea if you are planning to enjoy your retirement life make sure you save enough to stay happy and healthy throughout it.

Summing up:

Change is a part of life and if you learn to embrace and live with it, then you can manage any situation. A mid-life crisis can be managed easily by doing little homework and be consistent with your plan. By following the 5 tips mentioned above, you will be financially prepared for your future and beat the mid-life financial crisis.

4 Key Steps to Create a Long-Term Financial Plan

The financial plan is not just about saving money, cultivating smart spending habits; It’s a learning process of managing your money effectively and prepares for a financially secured future.

Facts and figure:

Our life is filled with lots of extravagant expenses such as saving for retirement, marriage, honeymoon, studies, maternity, buying a house, kids etc and the list is too big to write down. Obviously, you can’t save for all of this at a time, so you need to decide on what matters to you most at the current moment.

And the most important question that pops up here is:

How much money should I save for the future?

However, it’s difficult to just come up with a figure to save for your future. As it totally depends on your plans, needs, current financial situation and more. But with the help of a financial plan, you can create your own budget, fix financial goals and plan to save accordingly.

Step 1. What is a financial plan?

First things first. Before you proceed on planning, it is important to start with the basics. A financial plan is a comprehensive evaluation of your current pay and future financial state by analyzing 3 things: future income prediction, asset values, and withdrawal plans. There are lots of apps available that help in planning your finances by tracking your expenses, savings, set & track financial goals and more.

There are basically 7 factors that make up a financial plan:

  • Your financial goals
  • Your net-worth
  • Your income to spending ratio
  • Your retirement strategy
  • Your tax reduction strategy
  • Your insurance plans, and
  • Long-term investment plans

Setting financial goals is the next essential step which decides the entire plan. Let us look at how you can set financial goals and start saving for it.

Step 2. How to set financial goals?

Your financial goals depend on what you want in life and when you want to reach them. Your financial goals may be anything for instance: buying a home, marriage, honeymoon, kids etc.

A simple template for setting financial goals:

S.No.Financial goalTotal amountTimelineMinimum contribution per month
1.Down payment for a home$50,00020 months1000
2.Retirement savings$500,00020 years1000

Once you set your financial goals, the next step is to prioritize your goals and start saving accordingly. Add a category to your monthly or weekly budget to save for the financial goals. Even when you’re planning to save for your short-term goals, you need to keep retirement savings on the list.

When it comes to prioritizing, retirement savings should be on top of your priority list and there are quite a few reasons as well. Remember, there’s no option to take a loan to fund your retirement. So, create a financial plan and save now.

When you have enough money to support your retirement phase, you can enjoy that phase peacefully. If you start saving soon then you might retire as a millionaire. You can choose to save with your employer’s plan or on your own. Retirement is not going to be that easy and will be an expensive affair especially when you’re not prepared for it.

With the add-on expenses, it might get difficult to save money, especially for your long-term goals. As you would prioritize to reach your short-term goals first but there are alternate ways to manage both.

Let us look at the alternate ways to save for your long-term goals.

Step 3. How to start saving for long-term goals?

There are many ways to manage money more efficiently so that there’s room for savings. Following are the tips you can follow to have more savings:

  • Cut down on the unnecessary things that are eating up your pocket such as extra monthly subscriptions, gym memberships etc.
  • Clear off your debts at the earliest to start saving for long-term goals
  • Use every coupon and look for sale or discounts everywhere
  • Collect every change you get in a separate box and put it into your account when you save a good amount.

Step 4. Long-term investment options

Investing is a good way especially for a long-term option to get good returns. There are lots of options to invest in and you can decide based on the risk you can afford. The three main long-term investment options are Stocks, bonds and mutual funds.

Summing up:

Like your new year resolution plans, you need to plan for your financial future every year. Spend some time each year to evaluate and set financial goals for next year. Also, what are the major expenses you expect next year? This will help you to build your financial plan effectively and efficiently. Follow the 4 steps mentioned above to create your long-term financial plan for a financially secured future.

How to manage money efficiently by simply avoiding these 5 money mistakes

How to manage money?

Finance management is one of the things that we never learn from school instead will have to explore with experience. There is no shortcut to becoming a pro in financial management. But there are some mistakes that can create a bad shape on your finances. What will happen if you know what these 5 mistakes are, and you can give a new turn to your financial future by simply avoiding them?

The curious query!

Most of us are more curious to learn how to manage money efficiently. The good news is you can simply avoid these 5 financial mistakes mentioned below to have better savings, good financial management habits, smart spending habits, and a secured financial future.

We share with you these 5 money mistakes that simply answer your query of how to manage money efficiently?

5 Money mistakes to avoid or simply know how to manage money:


#1. Avoid warehouse club-style shopping

One of the biggest mistakes to avoid is doing a warehouse club-style shopping as you might end-up be buying things that you might not need at all. According to a study, if you’re among those who shop at the wholesale clubs such as Sam’s Club, Costco or BJs then, you would be spending and eating more.

Why you should avoid warehouse club-style shopping?

  • Hefty annual membership costs
  • The compulsion to buy everything in bulk (few kinds of stuff get spoiled when kept beyond a period such as cheese, dairy products) You can’t buy everything in bulk.
  • The temptation to impulse buying

Plan B:

  • Before you go shopping make a list of things to buy and stick to it
  • Shop at local markets and grab the available coupons
  • Look for a weekly discount at nearby supermarkets

#2. Avoid being blindfolded about your money

Do you have the track of every penny you spend and where all your money goes at the end of the month? If not, then its high time you stop being blindfolded about your money.

Plan B: Knowledge is power!

One of the efficient ways to manage money is by talking about it. You can discuss your financial ups and downs with a group of like-minded people or your family and friends. This way you can get new ideas on how other people tackle their problems or how to manage money in a better way. You can share your knowledge and learn from others on money management ideas.

The tech-savvy people can even choose from a range of apps to share and compare their financial life.

#3. Avoid going for the easy payment options

Today, we all prefer a fast and easy process for everything so has retailers and payment systems have streamlined their process. With all the ease, you’re less likely to know how much you’re spending or over-spending. You need to know how much you pay for each item and if it is worth it. Every time you spend on an unnecessary thing, you’re losing what can be saved for future.

Plan B:

Fix a budget for every week or month and keep the cash aside to spend.

#4. Avoid saving money on what is left at the end of the month

The ideal way to build your savings is by putting 10% of your income every month into your savings account. Saving should be your first thought and not what is left after spending.

Plan B:

  • Add a category as “savings” in your monthly budget
  • Fix an amount to save each month
  • Switch to automatic transfer from checking to savings account

#5. Avoid your credit to be misused by someone

You might be familiar with the Equifax data breach, where 145 million people’s personal and financial data was hacked. Before someone misuses your credit card, you can take a preventive action.

Plan B:

Put a credit freeze to your 3 credit reports. You can still use your existing credit, but no new lines of credit can be established. You might have to pay some amount to establish a credit freeze and details are available on the Equifax website.

Summing up:

You would have understood how to manage money efficiently by simply avoiding these 5 money mistakes to have a financially secured future. However, the best results come only when you implement these at the earliest. Just knowing the hacks will not do good until you start applying those at your end. So, start evaluating your financial situation and review if you’re making or made these 5 money mistakes and how you can take a counteraction to avoid it soon. It is important to know where you stand financially and track your progress every now and then. This will motivate you or even be a guide when you’re diverted from the path.