THERICHNETWORTH

All Round Entertainment

Finance

Top Financial Advisor’s 4 Secrets to Get Financially Secured

Financial stability means having enough money to comfortably meet your monthly bills, recover from financial setbacks (like losing your job), and save for your future goals. You should also be saving regularly in order to build up a nest egg that will allow you to retire early.

To achieve financial stability, you need to plan ahead. Start with a budget and stick to it. You need to save at least 10 percent of your monthly salary. If you are not saving money, then you will never be able to build wealth.

It’s not just about low financial pressure but about feeling in control of your own finances.

Surprisingly  the top three reasons for not saving money in general are:

1) People don’t give enough time thinking and planning (31%)

2) People think that they can’t afford to save money and end up exhausting every penny they earn (27%)

3) Most people think they can’t control their finances as it is hard to learn (26%).

The first two are understandable, but the third is surprising. Anyway, in this article, you will learn to control your finances during the current layoff season

  1. Emergency funds

Start by planning to create at least 6-12 months of emergency funds. This is a minimum amount, and you can always add more if you have the money.

If your income is stable, then you should be able to save enough for six months of living expenses in case of an emergency. If not, then you need to increase your savings rate.

See also  You Need Beste Kredittkort Test To Select The Card For You

While saving for retirement is a good idea, but your main focus must be on getting over this current period smoothly. 

  1. Health insurance

Make sure you take the right health insurance plan so that you can avoid paying out of pocket for expensive medical bills.

The best way to get the best deal is to compare different plans and choose one that suits your needs. You should also check if any discounts are available for those who have been with the company for a long time or if they offer special deals for new customers.

You may be able to find an affordable policy by comparing quotes from several companies. This will help you avoid paying too much.

  1. Fresh Budgeting

Budgeting can play a huge role in helping you as it acts as a tool to plan your expenses. It is recommended to create a fresh budget based on your estimates for one whole year.

The most important thing to remember is to make sure that you focus on your primary needs and avoid spending money on unnecessary wants and desires. 

You must only include essential items, mainly food ration, electricity bills, phone bills, internet bills, petrol etc. and must completely avoid buying leisure items. 

  1. Avoid Any New Debt/Loan

One of the keys to surviving the current scenario is to get rid of any current debt or avoid getting any new loan that could put an additional burden on your shoulder.

While taking any new loan seems lucrative, especially with a low EMI, you must resist the temptation to take it as it will only create a mental and financial burden on your shoulder.

See also  7 Tips for Financial Security After You Retire

You must also be mindful about spending through your credit cards as it could screw your budgeting if you use it mindlessly, as it is very easy to use such cards.

Last but not least, if you feel overwhelmed managing your personal finance or getting over the current layoff seems stressful, it is highly advisable to take professional help from a certified financial planner who could hold your hand and help you get past this without causing any stress. 

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *