Five Personal Finance Tips You Need to Know Right Now
In order to become financially successful, you don’t need to spend year after year pursuing an MBA. Doing simple things consistently and religiously year after year can lead to the path of financial success. Today, I will describe 5 such things.
Spend Less Than You Earn – Stick to spending less than your income, and financial success will come to you. This is the most important financial tip ever. If you can’t do this, doing everything else will be meaningless.
Pay Yourself First – Depending on your ability, save 5 – 15 percent of your gross income into an investment account, mutual funds, registered account, etc. Stick to this plan as long as you can afford to.
Build An Emergency Fund – Set aside six months’ (or more) worth of living expenses in a savings account or in an investment that is comparatively safe and can be withdrawn in a short notice without paying any penalty.
Set Goals - Know exactly when you would like to accomplish various goals throughout your life such as buying a house, paying off mortgage, retiring in the future, and so on. Take necessary steps to realise these goals.
Review Progress – Review your progress at least once a year. If you are not on the right track towards achieving your goals, change and readjust your financial roadmap. Consult a fee-based financial professional if necessary. If you don’t have the knowledge to invest by yourself, seek professional help. I recommend fee-only financial professionals.