We resume from where we left off previously. Discover what’s more to supplement when it comes to you creating and sustaining wealth. Going back and forth again with yours truly, Sam Yoong.
Other ingredients for successful budgeting
Working together with your spouse
Couples ought to sit down together, have a good talk and discuss to determine the direction that both parties want to attain in terms of financial goals, both on the short and long run.
By mutually agreeing to each other, both of you could work together effortlessly towards budgeting and investment. Indirectly, this strengthens your relationship with your spouse as much of the conflicts in marriages happen due to financial matters! The truth is out there…
Spending less
As you spend your money, be more conscious as to whether it’s intuitive buying and whether you really need the items.
By doing so, you could save some significant amount of money by the end of every month.
Results of hard work on budgeting
You have extra cash by the end of every month, having spent according to the limits you set for yourself and your household. The extra cash could be used for savings and for further investment. Not only existing debts could be reduced, but you and your household could also avoid from getting into any debts as well.
You could save yourself from worrying as much every month, on whether there would be enough financial provisions for life sustaining purposes.
You control money instead of the other way around. Work would seem more like a source of income for accumulating wealth instead of a solution to write off your debts every month.
Relationships with your spouse and children get better as financial securities are in place with planning on money handling done in advance.
No more wondering where all your money goes by the end of every month!
No more anxieties waiting for your salary to be banked in every month simply because you have no more money to survive on!
Being able to afford the things that you really desire as opposed to buying all the unnecessary items which you don’t really need in the first place!
You have extra cash lying around for usage in case of emergencies.
Tools for budgetingWhile you could do away with a pencil and papers, having a software would help make your job easier while budgeting. There are various products available out there that are able to generate reports, graphs and so forth.
Attitude is important before you start budgeting
If you’ve failed prior to this, don’t give up and try again! Most importantly, be positive!
Take control of your spending
Think positive about yourself as many people tend to associate the amount of money they’ve got with how much their self-image is worth.
There are people around who spend money just for the sake of generating good feelings. Re-evaluate on your beliefs when it comes to money, and you would find money-handling an easier task.
Some may find that they easily overspend with credit card as opposed to using cash everytime when they make their purchases. It is a known fact that credit cards hide away the guilty feelings simply because there is no forking out of tangible cash from your pocket everytime when making purchases. Therefore, use credit card if you so desire, but wisely.
Securing the financial provisions once and for all times!
Creating an emergency fund
Pull aside some of the extra cash you have to allocate for emergency fund, i.e. to set up a financial resource that you could use in any event of emergencies occurring. Ideally, the fund by itself should be able to support you and your household from 6 months up to 1 year.
Disability insurance
Having this protects your income generating ability, in the event should you become disabled and unable to work. This coverage would pay in replacement for your loss income for a period of time.
Life insurance
This aims to provide financial assistance to your children and to those who depend on you for financial means in the event of you having gone through premature death.
Fin…And this very much concludes our topic…see you again next time!
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