Saving money seems easy enough on paper; you just put aside a certain chunk of your monthly income and don’t touch it until or unless there’s a special occasion for it.

The only problem is that theory and reality aren’t always the same thing, and there are many subconscious lifestyle habits and attitudes that can sabotage our money-saving efforts.

Here are a few questions to help you get a better sense of perspective on your spending, and to improve your saving habits.

What are my real financial goals?

The first question to answer is “what are my real financial goals?” It’s easy to get side-tracked when you have no clear idea of what you’re actually putting your savings aside for. When you’ve got a lump-sum of money in a savings account, or a handy chunk of capital at hand via a company such as https://smallbusinessloans.co/, it’s easy to feel artificially wealthy and become complacent about your financial goals.

Without a clear purpose attached to your savings, however, any vaguely interesting investment opportunity can suddenly seem like a fair reason to dip into them.

If, on the other hand, you know that you’ve got a specific amount of money set aside for a specific purpose – buying a new car, for example – you’ll not only know to leave that money alone until it’s time to go car shopping, but you’ll be more motivated to regularly add to your savings. After all, you’ll be excited by the prospect of getting in your new ride.

Is there a cheaper way I could get this done?

There are certain expenses which we need to accept during the course of day-to-day life. Some of these will be personal, such as an internet connection, or clothes and grocery shopping. Others will be professional – such as web hosting, budgeting software, or transport fees for the commute in to work.

But while these expenses generally can’t be avoided – that doesn’t mean they can’t be reduced. Take a mental inventory of everything that you regularly spend money on, and ask yourself whether there’s a cheaper way you can achieve the same benefit.

Perhaps you could cut your internet bill in half with a rival service provider.

Am I conscious of what’s actually happens to my money?

Often, if we’re not used to budgeting meticulously, we’ll end up “bleeding” money in different ways, without even being conscious of it. This can happen, for example, if you regularly grab a coffee on the way to work, or eat out on a regular basis.

What may seem like a small expense here and there can rapidly add up and become a real source of undiagnosed financial strain.

It’s worth looking at your bank statements and making a note of just how much money you really do spend on “invisible” costs like cups of coffee. When you’ve identified an area where you’re spending far more than you’d like to be, you can work on sealing-up the “leaks”.

Is any of my spending purely habit driven?

Habit is a powerful thing, and spending can often be triggered by subconscious manipulation. That’s one of the great secrets of the advertising industry, after all.

If you’re the kind of person who’s prone to frequent impulse-buying and suspect purchases, ask yourself; how many of these purchases are really improving my quality of life, and how many are just empty spending, inspired by a shopping habit?

Ultimately, if you’re spending substantial amounts of money without any real benefit over time, you should work on re-programming that habit loop.

Share to Explore !!

Facebook

Digg

Pinterest

Twitter

Reddit

Linkedin

StumbleUpon

Tumblr

Print

email

Yummly

Buffer

Throughout life, there will be loads of points where you have to make decisions about your money. During these times, it will be important that you make calculation moves, choosing the right options at every junction. Thankfully, this isn’t as bad as it sounds. Instead, you have plenty of support, and a lot of it can come from posts just like this one. In fact, this will be going through some of the different moves you can make with your money for the best possible financial future. In a lot of cases, people don’t consider this sort of work. But, it can make a real difference and isn’t too hard to accomplish.

To start, a lot of people begin this process after realizing that they need to make a change in their financial life. It doesn’t matter what your issue, though, as there’s usually a way to solve it. With loans, for example, a lot of people find themselves borrowing too much from a lot of places. Making this easier is just a matter of consolidation, and a company like creditrepairreview.co can help you to find the right people to support you. Most money problems can be solved with a similar approach.

Once you’ve had a bit of time to save, it’s a good idea to think about investments. Most people have a limited amount of time. The time you do have is usually spent working or consuming entertainment. If you want to reach your full financial potential, though, you need to make more money than just your salary. To achieve this, an investment enables you make money without having to put time and effort in. Just make you have at least three months worth of savings before you start thinking about it.

It can feel a little bit wrong to think about the time after you pass, as most people would rather focus on the time they have around. Of course, though, to make sure your family are able to make the best of your departure, most people like the idea of setting up a legacy. A great way to ensure your loved ones get a good amount of money when you pass, life insurance is a great option. It’s best to start with something like this early, though. Otherwise, you’ll have to pay a lot for each installment.

Finally, it’s time to think about the life goals you have for yourself. In most cases, people want to own a house by the time they retire, and you’ll probably want to get the ball rolling on it long before that. A mortgage can take anywhere up to fifty years to pay off. So, it’s important to consider this area while you’re still young. To get started, you just need a reliable job and a little bit of money saved for a deposit.

This post should give you a good dose of inspiration and drive you to start making some changes with your money. A lot of people leave these areas too late and aren’t able to make the most of them. So, instead, it’s much better to get started as early as you can.

Share to Explore !!

Facebook

Digg

Pinterest

Twitter

Reddit

Linkedin

StumbleUpon

Tumblr

Print

email

Yummly

Buffer

Any smart person who wants to make more money will look into making investments. If there’s one thing for certain, it’s that investing your money in various ways is much smarter than simply putting it into savings.

Investing will make your money grow much faster than a savings account will – especially since interest rates have remained stagnant for quite some time now. Bear in mind that inflation will have an affect on the money you save, meaning that it will be worth much less in the future. Putting your money into the right investments ensures that your money retains it’s value or grows in value.

Here are 10 crucial things you should be considering before you invest:

1. The Best Use Of Your Money

The first thing you need to consider is whether investing is the best use of your money. Of course it is at some point, but right now, you may have other priorities. For example, paying off debts first and foremost is crucial. The longer you’re in debt, the more interest you pay. Paying off your debts ASAP will ensure you have more money freed up for investing in the future.

Health insurance is also a good shout. You never know what the future could hold, and this way, you’ll have peace of mind even though you’re not plowing every cent you have into a savings account.

That being said, you should have a cash cushion of at least 6 months expenses. You never know what could be around the corner. Consider every eventuality. May you need to take a pay cut? Could you lose your job if the company goes bankrupt? Lots of things can happen, so being prepared for them is a must. Just make sure you have your money in an easy access account!

Once you have these things, you can confidently begin investing your money!

2. Goals For Investing

You should know your goals for investing, as this will determine where you put your money. If you’re on the verge of retirement, safer investments are best for you. Bonds are fairly safe so look into those.

You can afford to take a moderate risk if you won’t need the money too soon. In this case, stable companies that pay out dividends are a good option. You can maybe take aggressive risks for higher gains – best for keeping your money in investments for quite some time. Look into companies that are focused on growth and investing money back into the business.

You can even potentially start investing for two different goals. For example, investing for a house downpayment which is short term, and investing to retire which is long term. Having goals like this will make you more financially secure and smart both now and in the future.

Know exactly what the goal of your investing is so you can make the right choices!

3. How Old You Are

Being young has its advantages when it comes to investing, but don’t panic if you’re older. It’s never too late to start, you may just need to alter what you’re doing a little to make it work.

When you’re young, you tend to be more secure, have less responsibilities, and have more disposable income. It’s also easier to pick yourself back up and brush yourself off after making a mistake. In your 20s especially, your biggest asset is time. Make the most of it when you’re young by making riskier investments and taking advantage of the fact you have more time for compound interest.

4. The Time Before You Need The Money

Some investments will have shorter goals, some won’t. Bear in mind that some investments come with charges if surrendered or redeemed before a holding period is up.

We mentioned it earlier, but the sooner you need the money, the less risky your investments should be!

5. Your Risk Tolerance

Not everyone can take risks with their money past a certain level. You may worry as you have responsibilities and dependents, or it can be something simple. The ups and downs of the stock market can make some people uncomfortable.

A higher return may not be worth the stress or losing sleep over, so bear that in mind. Consider your personality and what you expect you can handle in terms of investment risks. Bear in mind that you don’t have to navigate this minefield alone. There are financial planners, wealth advisers, and robo-advisers to guide you through the process.

6. A Diversified Investment Portfolio

A diversified investment portfolio is recommended for anybody and everybody who wants to invest. You can invest in many things, including:

• Different companies
• Industry sectors
• Markets
• Asset classes

Having all of your money in stocks can’t be considered a diverse portfolio. Having diversity in your portfolio can help protect you from market fluctuations. The more powerful your portfolio will be if you take the time do this, and the more smoothly things will run for you.

7. How Involved You Want To Be In Your Investments

You can be as involved as you like when it comes to your investments. You can work on them everyday, or take a backseat and let a dedicated professional do this for you. If you don’t have the time, you can delegate portfolio management to a financial advisor. You could even hire a property manager if you’ve invested your money in property. There’s barely any need for you to be involved at all, but it’s totally your preference.

8. Is There An Expert You Can Speak To?

If you’re totally confused, there are places you can find experts. There are dedicated people out there that can advise you, and networking on LinkedIn could even be an option. By doing this, you might just come up with questions you didn’t even realize that you should be asking.

Look for a professional investor or an investment banker and see what you can find out.

9. Do You Understand Growth?

To understand growth, an investor has to dig into the key financial statements. The things like balance sheets, income statements, and cash-flow statements. In the consumer sector you can ask for retail level sales too. Understanding growth is key to ensuring you’re putting your money into the right investments.

10. Knowing Your Exit Strategy

Above all else, you need to know exit scenarios for the industry that interests you. Having an exit strategy is crucial if you want to avoid potential disasters. You can take different things into account, such as how big the company is and the margins. Whatever you do, make sure you develop an exit strategy that suits you and makes you feel comfortable.

Now you’ve considered these 10 crucial things, you should have a good idea of what step to take next. Do you need to pay off your debts, save up a cash cushion, or find an expert to guide you? It can all seem complicated at first, but you don’t need to be an expert or even a business person to invest. Everybody should invest, as it can be a very smart way to use your money.

If you don’t think you have the cash to invest right now, take a good look at your budget and spending. Chances are, you’re buying many luxuries that can be cut back and better spent on your investments. If you’re going to experience investment success, you need to get serious about it.

Do you have any tips and thoughts on investing? Leave them below!

Share to Explore !!

Facebook

Digg

Pinterest

Twitter

Reddit

Linkedin

StumbleUpon

Tumblr

Print

email

Yummly

Buffer

As people approach their mid-thirties, many folks begin to worry about what might happen to them after they retire. At the moment, those individuals will have no trouble finding a job that pays decent wages and keeps a roof over their heads. However, that is going to change as they move closer to retirement age, and so it’s essential that everyone creates a plan. The advice below should assist readers in making sure they leave no stone unturned when it comes to preparing for the financial implications. So, put the information to good use and stop stressing so much!

Choosing a private pension plan

Most employers offer pension plans to their workers these days. Indeed, that is a legal requirement in some western countries because the government is struggling to cover the costs of state programs. However, there are also lots of private companies that offer excellent deals if people are willing to shop around. It’s sensible for everyone to opt for a private pension by their mid-thirties because that will give people enough time to build a substantial nest egg. Here are some tips for finding the best solution:

• Shop around
• Compare products
• Perform an affordability assessment
• Check for any hidden charges or fees

Making smart investments

Some folks like the idea of using their savings to make investments and create profit. That is a fantastic move, and it could enable people to retire a little earlier than most others. Of course, there are many different risks involved, and it’s always possible to lose everything. So, savvy individuals will make sure they use the services of a broker when they’re just starting out. Also, it’s handy if new investors target the most stable markets to ensure they reap lots of rewards. Everyone should have heard the term “derivative trading” before, but what is a CFD when it’s at home? Anyone who wants to launch themselves into the investment world to pay for their retirement will have to perform a lot of research so they can answer that question.

Paying your mortgage debt

The most substantial debt most people face relates to their home mortgage. Everyone should try to clear the balance and pay as much money as possible to the bank while they’re still working. The last thing anyone wants to do is default on their payments when they only have a few thousand dollars left. There are a few different options on the table, but the most sensible ideas are:

• Increasing mortgage payments while you still have a job
• Selling the house and buying somewhere different
• Finding a deal that enables you to sell the property and rent it back

If people manage to get rid of their mortgage debt, they shouldn’t face as much pressure when the time comes, and they retire.

Readers who might have concerned not mentioned in this post are advised to take a look around before they leave this site. There is an excellent retirement section that should cover all the most popular topics. When all’s said and done, preparing for retirement is not an exact science, and individuals should use some common sense and think outside of the box. Just make sure there is going to be enough money around so you can live a relaxing and comfortable life. That’s the goal.

Share to Explore !!

Facebook

Digg

Pinterest

Twitter

Reddit

Linkedin

StumbleUpon

Tumblr

Print

email

Yummly

Buffer

As a startup owner, chances are that you don’t exactly have a huge and unlimited pool of money at your disposal and it’s only natural, and sensible, that you should try to make savings wherever possible if you want to be in the best possible financial situation 12 months from now, but there are some things that startups just should not even think about skimping on.

Here are some examples of the kinds of things you MUST invest in if you want your business to be a success commercially and financially:

Reliable IT Services

So much of what we all do now is done at a computer, tablet or smartphone, and online is the space that modern businesses really need to conquer. What this means for you as a startup owner, is that you really cannot afford to skimp on reliable IT services. If you cut corners in this department, not only could you lose money when your network goes down, but you could actually risk losing sensitive data, and that could get you into a whole lot of trouble, not to mention cost you a whole lot of cash. It really isn’t worth the risk, especially when you can find great IT services which are moderately priced.

Data Backup

It’s also sensible to invest in a good data backup system, preferably in the cloud, so that should your website be hacked and your data lost, you will be able to instantly recover it. You can backup your data securely for as little as $10 per year, so it really would be foolish not to do so, especially when a loss of data really can cripple a small business.

Great Design

A lot of what determines whether or not a business will be successful, rightly or wrongly, is how attractive its brand is. Think of all the massively successful companies out there; your Google’s, Coca-Cola’s and Nikes and you’ll notice they all; have one thing in common – an instantly recognizable brand. If you want to be in their league someday, you need to invest in great design for your website, logo, business cards and, where applicable. Your products.

High-Quality Web Hosting

A lot of small business owners opt for the cheapest web hosting package they can find available to them. This is understandable, after all, hosting is hosting, right? Wrong! Very wrong! You see, a lot of the cheaper hosts go offline a lot, and when your website is down, that means you are losing money. Not only that, but a poor host could mean a slow website which will put customers off and prevent your media from effectively loading. Factor in the time you spend sorting it out, and the losses to your company could be huge.

Web Design

As well as putting a great web hosting package in place, you should also invest some of your startup capital in creating a website that looks beautiful and performs flawlessly. In the 21st Century, your website is often the first thing about you that the consumer will see and if it looks awful, well, they’re hardly going to have much confidence in your products and services are they? Don’t make the mistake of using a basic template when even just a little investment in a custom solution can be all that it takes to make that sale!

Creative Content

Naturally, you’ll want to put some content on your website so that people can actually find your company. If you want that to happen, it pays to invest in high-quality content written by professional copywriters, either on staff or freelance. If you do this, you can bet that you’ll make your money back and then some in the fullness of time.

Customer Service Training

Most startup owners are so focused on the future and how they want their business to be a year, two years or even ten years down the line, that they often lose sight of the things that need to be done now to get them there. One such thing is high-quality customer service training.

You see, although customer service might not seem like your most pressing issue right now, or even something you can justify using the business credit card on, it is actually one of the most vital tools in your arsenal. After all, your customers are the people who will make or break your business, and without them, you won’t even have a business at all. Once you realize this, it’s well-worth taking the time to invest in the right training so that your employees always treat your customers right.

Legal Counsel

We all know that legal fees are expensive, lawyers aren’t exactly known for being poor, after all. However, there is absolutely no way of getting around the fact that, if you want to start a successful business and avoid future financial difficulties and even bankruptcy, you need to invest in good legal counsel when you set up your business. If you don’t do this, you could end up making a mistake somewhere down the line and getting sued and, as I’m sure you will know, the cost of litigation, not to mention the cost of compensation should you lose a case, can be astronomical.

Great People

You can try, but I would bet against you starting a successful new company without a few good people by your side to help you along the way. Every company’s biggest cost is its payroll and hiring more employees than the minimum or those who don’t exactly come cheap might seem like a good way to cut business costs, but if you want your company to grow, you need to invest in the most creative, hardworking qualified people and you need to invest in enough people so that none of you are spread too thin.

As the old cliche says “Sometimes, you have to speculate to accumulate.” This is something that is certainly true in the startup world, and especially when it comes to these particular things.

Share to Explore !!

Facebook

Digg

Pinterest

Twitter

Reddit

Linkedin

StumbleUpon

Tumblr

Print

email

Yummly

Buffer