5 Steps To Efficiently Manage Your Finances
1. Get budgeting
You should get to know how much money you and your family bring in as well as what expenses come out. Ideally, you should have more income than expenses but this may not actually be the case, which is a very stressful situation to be in, so make a list of expenses and see what you can go without. You should also come to get to know what these terms mean in personal finance; ‘insurance’, ‘investment’, ‘taxes’, ‘superannuation’ etc. You will understand what you are doing much more thoroughly if you do.
2. Learn what to buy and what to rent
Ask yourself which items are better to buy and which items are better to rent. You would probably watch the next superhero movie once, which might be better to rent on Netflix than buying. Your home might be better off being bought. (Especially if you are trying to get into property investment). Consider renting your place of residence whilst buying an investment that could make you more profits sooner. A lot of people do not realise that it is usually cheaper to rent and buy an investment, which will make profits, rather than to buy their own home first. But if you can buy a place cheaper than you could to rent somewhere to live, then buying your own home could be a better option.
3. Start investing
If you are reading this, then you probably already are interested in investing if you aren’t already doing it. Consider that the better your financial working knowledge, the better monetary decisions you will make when it comes to investing. Property investment is a great avenue (it’s our specialty of course), you could also try to dabble in stocks but make sure you are seeking professional advice before starting any kind of investing.
4. Get a savings account
Assuming you don’t already have one, it’s a better choice than keeping your money under your bed. Why? Because the banks will pay you to keep your money with them. Any will do, but feel free to see their interest rates and their terms and conditions and compare. Make sure to be setting aside some money even if only small payments as it will build up into a round-the-world cruise trip if you save up enough years. Aim to have at least 3 months of your normal earnings in your savings account which you almost never touch, just in case of disaster striking such as being losing a job or taking a hard hit if you are an investor. That money should last you long enough for you to get back on your feet.
5. Find another source of income
If you are already an investor then you might already be doing this though it doesn’t hurt to broaden your horizons further. Consider selling things that you don’t want anymore in a garage sale or online using places like eBay and Gumtree. It might also be handy if you have some sort of trade or another paying skill on the side. It is a trait of successful people to be having at least 3 forms of income from different investments, jobs or industries.