{"id":25054,"date":"2017-06-18T02:18:53","date_gmt":"2017-06-17T23:18:53","guid":{"rendered":"https:\/\/www.lifeadvancer.com\/?p=25054"},"modified":"2017-06-18T02:18:53","modified_gmt":"2017-06-17T23:18:53","slug":"financial-planning-tips","status":"publish","type":"post","link":"https:\/\/www.lifeadvancer.com\/financial-planning-tips\/","title":{"rendered":"7 Essential Financial Planning Tips to Get You Prepared"},"content":{"rendered":"
Life is interesting. But sometimes it tends to throw some hard moments that are really hard to predict.<\/p>\n
It\u2019s true that the punch you don\u2019t see coming puts you down, but you don\u2019t have to land on a hard merciless surface.<\/p>\n
In the economic time we live in, it\u2019s common to hear of people who woke up in the morning and realized that their job is gone<\/a>. Maybe your kid just fell sick and the cash demands are hefty or the mechanic says the car needs a gearbox replacement.<\/p>\n If you are not ready, these events can leave you overwhelmed and drive you deeper into debt.<\/p>\n But it doesn\u2019t have to be this way. In fact, there is a way to prepare for the unforeseen and inevitable events that may leave you confused. Few things will assure you some peace of mind than knowing there is some money sitting somewhere just in case an emergency struck.<\/p>\n Most people find it out of reach but if you can approach it from a strategic angle, you can win. Here are some financial planning strategies.<\/p>\n To start saving, you need to understand how much is spent on what every month<\/a>. Observe your spending habits especially of the things that seem cheap. The truth is, they will add up to sizable amounts by the end of the month. Remember that even a $100 a month<\/strong> is very significant to financial planning and emergency savings.<\/p>\n Saving $5000 in a few months is not an easy task, especially when you have family, kids, and mortgage to take care of. When the target seems out of reach, motivation dwindles away and the next thing you know is that you have veered off the track and give up.<\/p>\n What if the goals were segmented into small but significant milestones? They automatically become achievable. To be more effective, create targets within range and give them a timeframe. When you achieve, say, $1000 in three months, move to a higher target. Before long, that savings account will be swelling up.<\/p>\n The number one reason that leaves people in a continuous state of debt is a lack of financial planning and the habit of living beyond their means. Create a budget that focuses on necessities and avoids<\/strong> items that bloat your expenditures.<\/p>\n This will help you make a continuous contribution towards the fund<\/strong>. While sticking with a budget could be a challenge at first, you will soon adapt and experience the feeling of a constantly growing fund.<\/p>\n Spending will always be an easy task. Sometimes, you can\u2019t believe how fast the cash was spent. If you are prone to spending money as soon as the pay drops in, set up an automatic payment that will send some money to the emergency account.<\/p>\n Start considering it a bill of some sort that has to be paid on a regular basis.<\/p>\n With so many options around, there is always room for negotiation. Start with the insurance or the credit card company and ask for better rates. If they can\u2019t provide what you are looking for, then it\u2019s time to find a better option<\/strong>.<\/p>\n Most credit cards offer great rewards and it\u2019s always prudent to make sure the rewards are on items or services that you constantly spend on.<\/p>\n Normally, people do odd jobs to make ends meet when tragedy comes knocking. The same effort that could have been used to create a cushion only that this time worry and fear is dominant. Instead of waiting until when things go south, it’s wiser to work extra time now and have something stored up for a rainy day.<\/p>\n There are numerous ways to make money online<\/a>\u00a0as well. Better still you can get a side job and make sure you save up most of the earnings.<\/p>\n When cash is lying somewhere, it\u2019s easy to be tempted to use just a little for other expenses like insurance. Always remember the purpose of the money and if any expense can be predicted then it\u2019s not a beneficiary of the fund<\/strong>.<\/p>\n A good way to make sure it only serves the purpose is having an inconvenient savings account. It could be the distance you have to drive to withdraw the money or have it separate from the daily checking account.<\/p>\n Conclusion<\/strong><\/p>\n The recommendations from financial advisors about financial planning and emergency savings are endless<\/strong>. It\u2019s undeniable that you stand a better chance when tragedy finds you prepared. To prepare efficiently, you have to make some lifestyle adjustments<\/a> that will help nurture and grow a sufficient fund.<\/p>\nScrutinize and study your spending<\/h3>\n
Set achievable goals<\/a><\/h3>\n
Create a budget that is below your means<\/h3>\n
Set up an automatic payment<\/h3>\n
Ask your service providers for better deals<\/h3>\n
Start making more money for the fund<\/h3>\n
Refrain from spending the money unless it\u2019s an emergency<\/h3>\n