Yes, you can work hard to earn income
or get good returns from your investment, but what is important is your
being able to manage these finances for sustainability.
Being a challenge that confronts you,
it is most advisable that you employ the services of a financial
planner to assist you with the desired knowledge. Experts are of the
view that learning how to manage your personal finances can lead to
sustainability.
However, Miriam Caldwell, personal
finance specialists has come up with steps that can help you get control
of your finances. Once you are following the steps consistently the
stress about your finances will diminish.
The first thing you should do is to
write specific goals about what you want to do with your life and your
money, she said. Finances can affect many different areas of your life.
Your goal to travel the world affects how you will plan your finances.
Your goal to retire early is dependent on how well you handle your
finances now. Home ownership, starting a family, moving or changing
careers will all be affected by how you manage your finances. Once you
have written down your goals you will need to prioritize them. This
makes sure you are paying attention to the ones that are most important
to you. You can also list them in the order you want to achieve them,
but for a long-term goal like retirement, you should be working towards
it while working on your other goals.
Another step is having a plan will help
you reach your goals. The plan should have multiple steps. The first
part of your plan should be to get control of your budget. You will need
to create a spending plan. The second part of your plan should be to
get out of debt. After you have accomplished those two things, you
should decide what you want to do with your money to reach your goals.
The money you free up from your debt payments can be used to reaching
your goals. At this point you should decide what priorities are the most
important to you right now, as long as you are steadily working towards
your long-term retirement goals, you can begin to focus on the most
important goals you have set for yourself.
She said your budget is one of the
biggest tools that will help you succeed financially. It allows you to
create a spending plan so you can focus your money in a way that will
help you to reach your goals. Even after you are out of debt you need to
have a budget. It is easy to spend more than you make, and if you stop
tracking your spending you can go over and run up debt really quickly.
A budget lets you decide how to spend
your money. Without the plan you may spend your money on things that are
not important to you, but you want in the moment, and then wonder why
you are never reaching the financial milestones you want to set. If you
are married you and your spouse need to work together on the budget.
This will help you to achieve your goals together and prevent fights.
By: HOPE MOSES-ASHIKE
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