How to live a Stress-Free financial life?

How to live a Stress-Free financial life thru Saving and wise Spending of Money?

How to live a Stress-Free financial life?

Personal financing of your money is something that needs much of your discipline to make it work well.

Here are tips to have a happy stress-free financial life.

1. Have yourself paid first: Aim to put away at least 10% of your pre-tax income into your savings account. Individuals usually save money which is left after their expenses. As soon as you get the salary, keep aside the saving amount and then try to spend on your expenses from the remaining money.

2. Be strict in spending less than you earn: Keep yourself away from so many demands of shopping. Be not an impulsive buyer. Only use credit cards for utility bill payments or in case of emergency. Stop spending too much. Start saving.

3. Pay your bills on time: Avoid needless late fees as these may cause delays or interruptions in your transaction. Keep track on how much money you actually have. As soon as you get SMS or email of the payment reminder. Note in down as an alert in your google calendar or mobile phone. Bills and expenses put a lot of stress. But if you go with right ways, you will be prevented with debt problems.

4. Avoid debt to the extent possible: Remember what your parents or grandparents use to told you that always buy things with hard cash and not on debt. Debts can be bad if you are taking them to purchase liabilities like car and furniture.Student loans and mortgages can be “good debt”, but even then, make paying them off a priority.

5. Set a budget and aim to live by it: If you want to improve something, first you need to know the current status quo. Setting a budget lets you know what is your current spending and how much control is required. Your budget will serve as a guide for your transactions.

6. Set concrete goals for you to achieve: Know when you want to buy a new home, when you want to retire, and how much you are expecting each to cost you.

7. Have an emergency fund: Emergency can come anytime and you should have at least 3 to 6 months of your monthly expenses in your savings account. Never expect that your relatives or friends will help you in case of a financial emergency. Try to make some of your income in a savings account or liquid funds that can be easily accessed.

8. Understand the difference between savings and investments: Try to create assets as soon as you start earning. Passive income can help. You need to beat inflation and understand which instruments will be perfect for your financial goals.

Learn to live by the smart ways of spending money wisely and saving money for your future earnings. I wish a Happy Stress-free financial life to you.

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