We discuss many aspects of personal finance with our family and friends. We explore ways to earn more money, get out of debt, and build an emergency fund. We talk about the psychology of money management, and we share tips and tricks for making the most of your savings and your career
However, in 2012 let's take an oath to grow money and invest it the right way! The following are some of the steps you can follow to increase your money
Step #1: Set financial goals
For your goals to be effective, they have to be personal. They have to mean something to you. Example, will save money for travel, will buy a new car, start a business and so on.
Step #2: Track every penny you spend
Maintain a systematic track of your money, where are you spending it? When? etc. This is a very important step.
Step #3: Develop a budget
After you’ve tracked your spending for a few weeks (or months), use the data you’ve collected to develop a budget. Whatever way you make your budget keep in mind it should be less than what you are earning.
Step #4: Review your bills (and ask for discounts)
At least once each year, you should review the contracts and agreements you have with various banks and service providers. This is also a great time to review your financial accounts to be sure everything still matches your needs.
Step #5: Optimize your accounts
Checking at equal intervals what is happening with you account will be beneficial for you.
Step #6: Start an emergency fund
Just to be on a safer side open an account which hold the funds to be used in an emergency, such as the loss of a job, an illness or a major expense. Such accounts can really come in handy and way to deal with large expenses.
Step #7: Get out of debt
If you want to save money it's priority that you release from all your debts. The debt snowball can give you awesome psychological payoffs, keeping you motivated to stay in the game.
Step #8: Fund your retirement
If you’re young, you probably don’t think you need to start a retirement account. You’re wrong. No matter how old you are, now is the time to begin saving for retirement.
Step #9: Automate your finances
When you make things automatic, you remove the human element, making it more difficult for you to mess things up.
Step #10: Earn extra money
You can meet a lot of your financial goals by reducing your spending and using the right tools. But nothing supercharges your progress like a boost in income. If you ever get a chance try and earn extra income in 2012.
Ref: http://www.getrichslowly.org/blog/2012/01/01/12-steps-to-financial-freedom-in-2012/
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