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Thursday, 6 June 2013

Good financial decision can help you build real wealth





You may have goals you want to accomplish at a specific period, be it getting married, buying your first home or starting a new job; it all requires good financial decision and planning to achieve, experts have said. In making great financial decisions, you may need to adjust your current spending habits in order to reach your goals and at the same time build real wealth.
Creating a solid financial plan will make it possible for you to navigate your financial steps without financial stress, says Miriam Caldwell, personal finance specialist.
According to her, one of the most exciting times is when you are about to get married. It is exciting to begin planning and preparing for your wedding. After the wedding you will begin your financial life together with your spouse. Money is one of the most difficult topics to deal with in a marriage. It is important to address this issue from the very beginning of your marriage. This will help you and your spouse work towards the same goals. Open communication about your finances will help your marriage be successful.
Another big and exciting time she said is when you purchase your first home. This is a big decision and commitment. You need to be sure that you are ready to purchase a new home. Additionally, you need to understand the terms of your mortgage. You should have enough money set aside to cover emergencies home repairs. It is also important to consider the additional cost of insurance and property taxes. If you plan carefully you should be able to transition into home ownership easily.
Finding a new job is another financial step of your life. Caldwell said after a few years in the workforce, you may be ready to move onto a new career. You can look for promotions inside your company, or you may look elsewhere to find better benefits and a more lucrative salary.
This is an important step. You want your income to continue to grow, and making the move at the right time is part of that. You should make sure that you are prepared to make the changes a new job would require. You can also take additional classes or certification training to make yourself more marketable. She said you may also reach a point where you want to buy a new car. Buying a car is necessary. It is important to prepare yourself for this purchase. If possible you should pay cash for your car, but if you can’t you need to shop for the best loan options available. Additionally you should be careful on how much you spend on your car, because a payment can limit what you can do in the future.
If you are in debt, there is need you get out of debt. Once you begin to settle down in the working world, you should get serious about getting out of debt and using your money wisely. Once you are debt free, you can begin to accumulate real wealth.
This will help you to achieve your dreams and move forward. If you continue to make payments you are limiting what you can do with your money. Choosing to live debt free life is one of the best decisions you can make for building real wealth.
Additionally, you should begin to seriously invest your money. You will be responsible for your own retirement costs. Investing is essential if you want to live comfortably and not worry about your later years. It can also help you pay for your children to attend college. Investing your money can be intimidating if you do not understand what you are doing. However, if you find a good financial planner, he should be able to explain everything to you in detail, Miriam has said.

BY : HOPE MOSES-ASHIKE
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