Cheap Personal Finance

You may be in need of some extra cash so that you can accomplish something, say renovating your home, clearing debts or for a certain business deal. You may find that the money you have with you or in the bank is not enough to fully meet the need. Therefore, you may have the need for personal finance. 

 

The reason why it is known as personal finance is because this is money needed to meet some needs that are somewhat personal in nature as opposed to the other needs like buying a house, purchasing a score of land or setting up a business. There are many personal finance schemes available in the market, but you need to know how to get the best personal finance scheme that will work for you and that will come with the best rates and terms.

 

There are many personal finance schemes out there that are cheap. They come in many shapes, but the most common one is the secured one. In this you give collateral as you take the cash. Personal finance schemes that are secured with collateral are the best and they are the cheapest. The reason why they are cheap is because the lender is confident that the cash will be paid back because they have your item at hand. Therefore, secured personal finance schemes are cheaper than the non-secured ones. 

 

The repayment period also varies in different personal finance schemes. There are those schemes that require that you pay off the whole amount together with interest within a period of five years. However, there are those that give repayment periods that are stretched to over twenty years. Also, the allowed lending amount varies. Some personal finance schemes give only three thousand dollars while others even give up to fifty thousand dollars! 

 

Unsecured personal finance option can also be considered, depending on the nature of your need and your willingness. In this personal finance scheme, you are given the financing without any form of collateral. However, the limitation with this scheme is that the allowed lending amount ranges from five hundred dollars to fifteen thousand dollars. 

 

Also, the interest rate for this unsecured personal finance option is a bit higher, because of the fact that there is no security. The repayment period is also very short, ranging from one to ten years’ time. For the best personal finance schemes, you can go online and make an application.

How Well Do You Manage Your Finances?

Financial management of your personal finances is one of the hardest things you may have to do in your life. It is very hard to know whether or not you manage your personal finances well, unless you ask yourself some questions. 

 

First and foremost, you need to ask yourself is, “how well can you manage without using your credit card?” If you are very dependent on the credit card that you cannot do without it for the month, then your personal finance management has not yet grown to maturity. Doing without your credit card is not something you will learn to do overnight; it needs a lot of patience and sacrifice to break from such a habit. You first need to gradually but steadily pay off all the pending debts in your credit cards. This will call for debt consolidation so that the interest rates you pay will lower.

 

Secondly, the best indicator of how will or badly you manage your finances is your savings account. How much savings do you have? Over what period of time have you made these savings? How much do you dig back into the savings to meet your needs and wants? It is very disastrous when you have absolutely no personal savings. You should ensure that you save at least ten percent of your monthly or daily income. If you use more than ninety percent of what you get, then you should improve your personal finance management skills. There is no way you will get your personal finances in order if you have no savings to fall back to.

 

Thirdly, look at the status of your job or business. How much do you get from it in a month or week? How stable is it? What is the future like for the job or business? Does it meet your expenses? If not, what is your next plan for making more money? Do not rely on your job alone if you want to be in a good position to manage your personal finances. Consider doing business, whether small or big. 

 

Lastly, you need to know the stats of your emergency funds. Do you have sufficient medical emergency funds? Are you in any retirement benefit plan? You should make use of such plans, especially the government ones. This will ensure that your future is secured financially and that you will be prepared in case of any emergencies.

Manage Your Personal Finance

Most people have issues with their personal finances, and they have never come to a point where they have full control over their personal finances. Most people think that management of personal finances will only be possible when they start making millions of dollars every month. However, this is not true. This assumption usually makes people reluctant to take control of their money and they end up in financial crisis. 

 

Others think that taking steps to manage personal finances is a harsh and exaggerated, and they just live each day as it comes. Others live with the dream of becoming financially free one day and they therefore see no need to bother planning for the few peanuts they presently have. This is a very wrong perception, and it is imp0ortant that you take charge of your personal finances. 

 

One simple tip is to make good use of free samples. Why should you buy something when you can get a smaller version of it for free? It sounds funny, but it helps. Also, be a good steward of your plastic money.

 

If you are very extravagant, then avoid having a credit card; go for a debit one. Open a savings account instead of a current account, because your rate of withdrawal will be regulated. Make an effort to save money and reward yourself when your aims are met. It also makes more sense to buy things in bulk. Do a month’s shopping instead of buying what you need every day. 

 

This is especially with dry foods and foods that have a long shelve life. Things are much cheaper when they are bought in bulk, and you will find more offers on bulk items than on single ones. It is also cheaper to transport many items at once than to go ton the store everyday or every week. Remember, saving money is not only in the price at which you buy them, but also in the effort, time and money you spend to get them to your house.

 

When going to the convenience store, always have a list and stick to it. This is to avoid impulse buying, because this is what affects many people’s personal finances. Have someone who will keep you accountable, say a spouse or a friend. Practice sticking to the shopping list and it will become natural to you with time. Mark your progress, and give yourself incentives and rewards for every progress you make.

Personal Finance—Make Your Own Budget

When people hear the word “finance” mentioned, their mind goes into business and corporate matters. However, the bare truth is that finances start at your piggy bank at home to your plastic money in the wallet to your bank account. 

 

This is what personal finance is all about. You should be a manager of your own finances, or else you will end up in disaster sooner or later. Finance experts say that if you cannot save at least ten percent of what you are earning, then you are in financial disaster. This means that out of ten thousand dollars, a thousand should go into the savings account. This rule applies regardless of how much money you are earning, and it does not apply to the rich and wealthy, as many people think. 

 

Personal finance management cannot be done verbally, and therefore there is need to write down the plan so that it will be easy to implement it. It is natural for human beings to forget that they swore never to overspend especially when they are looking at an item that is flashy and exciting, and more so when this item has been their dream item. 

 

Therefore, a personal finance budget is the way to go. This will keep you accountable, and if you are strict enough to stick to it, then you can be sure to get to the level where you are financially free. Financial freedom is not a point when you get more cash than your bank account can hold; it is that point when your finances are no longer in control of you – you are the one controlling them. 

 

As you make your personal finance budget, use actual figures. It is wrong to use estimated figures, unless it is quite inevitable. When it is not possible to have the actual prices, make an estimate but ensure that it is on the higher side. 

 

However, even this is not the best way to go, because you may put unnecessary strain on your budget. Find out the current prices of food items, clothing, entertainment, leisure, beauty, health, and every other need that is predictable. 

 

Health needs are not easily predictable, but they can only be accurately predicted when you have a member of the family that has a certain chronic illness that requires a certain amount of money every month. However, the 10% named above that should not be spent is what covers any unexpected needs and it also stands to meet any future expenses like a holiday, a car, long term further education, a new house, etc. 

Protect Your Personal Finances

What is the present status of your personal finances? The best way through which you can review this status is by first checking your personal savings. You should have constant and consistent saving habits. Also, your dependability on plastic money should say a lot about the status of your personal finances. 

 

Your personal finances are okay if you can survive for about three months without even looking at your credit cards. If you have accumulated a lot of credit card debts, you need to strategize a way through which these debts ca be aid in the easiest and cheapest way. Consider consolidating your debts, because this will ensure that you pay the debts using a cheaper rate of interest, and this will save you money in the long run. 

 

The reason why you need to protect your personal finances is because of the insecurity in the people’s financial future. One thing that can make you aware of the need to protect your personal finances early enough is the rate at which jobless people are increasing, the rate at which prices of food and energy are raising and the rate at which inflation is occurring. The interest rates on almost everything are increasing at an alarming rate, and this is very worrying. Therefore, you need to secure the future of you and your family and loved ones by putting in order your personal finances.

 

You should watch how you manage your debts. One thing that really wastes your cash is the interest rates. Most of the times, one usually ends up paying for more than double of what they actually owe, and this is all because of the interest rates. It therefore is very detrimental to the health of your personal finances when you are paying more than five credit card debts. The best way you can manage these debts is by doing consolidation. You can approach any financer, say a bank, and ask for a debt consolidation loan. When they accept, they pay off all your debts and consolidate them into one, and you therefore end up paying only one financer, meaning that the interest will be much lower.

 

Personal finance budgeting is also a must in securing your finances. Budgeting does not only apply to those who earn five hundred dollars every month; it applies to the multibillionaires too. There is absolutely no way your personal finances can be secure if you do not have a good personal finance budget. A budget acts as a guideline to your spending and it ensures that the money is fairly and appropriately distributed among all needs.

Car Finance–3 Great Financing Options

If you’re thinking of buying a used or new vehicle, there are a few different ways in which you can finance your purchase. 

 

Although you can pay cash when you buy a car, almost 80% of the people buying cars today use a car financing option. This is more affordable because you are able to break the car payments down into monthly expenses, instead of having to spend a big amount of cash at once.

 

Of course, there are pros and cons to each different option of car financing. You should consider these carefully before you decide which one you will use. 

 

0% financing is one of these options. 

 

0% financing allows you the option of extending the amount of time in which you can pay the car finance loan back. This is without the interest that you often have to pay when you take out a loan. This option is what the car retailers like to use to interest customers and bring them in. 

 

It’s difficult to qualify for this loan though, as your credit score needs to be quite high. Also, the amount of time in which you are expected to pay the loan back is a lot less then with some of the other car financing options. You could be asked to pay the whole loan back in 36 months, instead of making smaller payments over a longer period of time. 

 

The second option is one which offers you a cash-back incentive. When you look at the two options, the 0% APR financing option and the cash back offer, you can compare which one is more suitable for you. 

 

You do this by working out the amount of interest you will have to pay during the whole length of your loan when you choose the cash-back option. If you find out that you would have to pay more interest than the amount of cash-back you would receive, you would be better off choosing the 0% APR deal. 

 

The next car finance option is having the opportunity of getting into your dream car without putting any money down.

 

For many people a great incentive is not having to pay a down-payment. Many people simply do not have a lot of extra money to put towards a down-payment. 

 

You may end up paying much more in interest in the long run, and monthly payments will of course be higher, but the advantage to this option is that you can get your car without paying as much upfront. 

Do You Need an Internet Business Bank Account?

People working online often don’t know whether or not they need a business bank account on the internet. Creating another back account may seem like an unimportant detail, if you haven’t got a separate business entity set up and you aren’t the sole owner. 

 

This will help you understand why it is in fact important for you to set up an Internet business bank account. And this is a fact that is not part of your own personal account. 

 

Taxes

 

Tax purposes are one of the main reasons why many people create an internet business-bank-account. In America, you can get a lot of tax deductions if you are running an internet business in your home as many people have started out doing. When running a business from home you get to deduct things from your taxes, things like a portion of rent or utilities. There are so many tax advantages to that many people who are not running a home business will try to claim their hobbies are a business. If you have a separate bank account for your business it will be easier for you to prove that you are eligible for tax breaks. 

 

Clarity 

 

By creating an Internet business bank account, you will be able to have a clearer picture of your overall business. It’s easy to make a mistake when you are paying everything from a personal account. You might accidentally misclassify a transaction, especially if you happen to be sharing an account with a significant other. This goes for both income as well as expenses. If you do not have all the financial data set out clearly you won’t be able to have a good picture of whether or not your business actually is. 

 

Safety 

 

Using a different bank account for business also helps protect your personal account. When you accept direct payments, there is a risk of identity theft. This risk is higher if you only have one account for everything. By having multiple accounts, you are minimizing the risk by spreading it over your various accounts. If by some chance your information is stolen, it will affect only one account and the others will remain safe.

 

By creating an Internet business bank account helps you to take your business more seriously. There are many benefits to having an Internet business bank account, including: tax benefits, safety and also financial clarity. 

How Many Steps Are You from Getting Car Finance?

It is a pretty easy process to get car finance approved, but it can seem complicated if you don’t know what to expect. Many people don’t get the car that they wanted because someone else got money together and bought it first. This can be a big disappointment. 

These 5 steps should help make the whole process run more smoothly for you and help you get a quicker settlement. 

 

Step 1: Find Your Car

 

If you haven’t yet decided on which car you want, you should try to at least have an idea of what you. This is because finance companies base their final approval on the car you buy. If you find a model that is similar to the car you will eventually buy then it won’t matter if the car you actually do buy is just a bit different.

 

Step 2: Be Prepared

 

No matter what finance company you choose, you will need to give them a lot of information about yourself if you want them to approve your loan. You should make sure to bring all the necessary information with you. This includes; your address details, your employers/work details and driving license numbers. You will also be asked whether or not you have previously borrowed money. If you there is a partner involved, you will need to produce that person’s information too. 

 

Step 3: Be Available

 

You might be asked to send papers or documentation. At this point, the only person who could slow the process down is you. You should try to have a scanner or a fax machine at your disposal so you can send the necessary papers immediately. Be sure that you are available to sign any documents if need be. 

 

Step 4: Read Carefully

 

It is important to read everything very carefully. You should watch out for that small print, but also remember that these are legal documents, you have to be sure to sign and put the date at the right places, otherwise the document becomes invalid and you’ll have to make a whole new one. 

 

Step 5: You Are Approved

 

Now that you are approved, you can see the amount of money you have borrowed. It’s time to act. If you haven’t already found the car to buy do it now. You can use the fact that your loan has been approved as bargaining leverage. Certain documents from the car dealer are also required to be sent to your finance company. Then comes settlement. 

 

If you work well with your finance company and follow these steps, it should be a pretty easy and quick process. 

How to Choose a Car Finance Broker

Buying a car is one thing, but financing it is another thing. The financing part is the most important. As a matter of fact, financing of cars has gone to the next level with the introduction of finance brokers to the trade. These individuals have made the whole process easier than it was in the past. To start with, they help people acquire secure car loans. Secondly, they help one budget when planning to purchase a vehicle. Generally, finance brokers help car buyers have an easy time when buying a car as well as acting as consultants.

 

A good finance broker is one who gives you tips on how best to approach loaning institutes when applying for a car loan. He or she should have experience in this particular sector in order for him to know how to go about the whole process. As a matter of fact, experienced finance brokers have built good relationships with loan lenders. Therefore, lenders can even give you advice on a particular finance broker, his qualities and if he is as open as he claims to be. However, there are other key factors that one should critically look at when choosing a finance broker. Remember that fraudsters are all over the place and it is important for you to consider these factors.

 

First, check for his credentials. He or she should be a member of COSL (Credit Ombudsman Service Limited). Alternatively, he or she can also be a member of FBAA (Finance Brokers’ Association) or even both. This applies to those based in Australia. These are the leading finance brokers associations. To check if you broker is a member of any of these associations, simply go through their list of members. WA Finance Broker License is another very important credential document for any good license broker. This license just proves that the broker has reached the required education limit plus is a recognized broker.

 

Accreditations are also a considering factor for finance brokers. Preferably, go for a broker that has a wide range of accreditations since this gives you a wide variety of lender options. Another very important factor is experience. Look for a finance that has several years of experience. As they say, experience is the best teacher. An experienced broker offers quality services. Lastly, look for one that offers services outside the box. This simply means one that is quite versatile in the finance field and can help you in each and every step of the process. 

Diversification Is Important

“Do not put all of your eggs in one basket!” You have in all likelihood heard that again and again over your life... and when it comes to investment, it is really true. 

 

Diversification is the key to successful investment. All successful investors build up portfolios that are widely diversified, and you ought to as well!

 

Broadening your investitures may include buying assorted stocks in a lot of different industries. It might include buying bonds, investment in money market accounts, or even in some real estate. The key is to invest in a lot of different arenas – not simply one.

 

Over time, enquiry has shown that investors who have broadened portfolios commonly see more reproducible and stable returns on their investitures than those who simply invest in one thing. By investing in a lot of different markets, you'll in reality be at less risk too.

 

For example, if you've invested all of your revenue in one stock, and that stock takes a substantial dip, you'll most likely discover that you have lost all of your revenue. On the other hand, if you've invested in 10 different stocks, and 9 are doing well while one plunges, you're still in fairly good condition.

 

A good diversification will commonly include stocks, bonds, real estate, and hard currency. It might take time to broaden your portfolio. Depending upon how much you have to initially vest, you might have to begin with one sort of investment, and invest in additional areas as time passes.

 

This is all right, but if you are able to split up your initial investment among assorted types of investments, you'll discover that you have a lower risk of turning a loss on your money, and over time, you'll encounter better returns.

 

Experts likewise hint that you spread your investment revenue evenly among your investments. Put differently, if you begin with a hundred thousand dollars to invest, invest twenty-five thousand in stocks, twenty-five thousand in real estate, twenty five thousand in bonds, and place twenty five thousand in an interest carrying savings account.

Why You Ought To Invest

Investment matters have become more and more crucial over the years, as the time to come with social security benefits turns unknown.

 

Individuals would like to guarantee their futures, and they know that if they're depending upon Social Security benefits, and in a few cases pension plans, that they might be in for a crude awakening when they no more have the ability to take in a steady income. Investing is the answer to the unknowns of the time to come.

 

You might have been laying aside money in a low interest savings account throughout the years. At present, you would like to see that money grow at a quicker pace. Maybe you’ve come into money or received a big windfall, and you require a way to make that income grow. Once again, investments are the answer. 

 

Investing is likewise a way of getting the things that you wish, such as a new house, a college education for your youngsters, or expensive ‘playthings.’ Naturally, your financial goals will influence what sort of investing you do.

 

If you wish or need to bring in a lot of income fast, you would be more interested in higher risk investments, which will give you a bigger return in a shorter sum of time. If you're saving for something in the faraway future, like retirement, you would want to make safer investitures that grow over a longer time period. 

 

The total purpose of investing is to produce wealth and security, over a time period. It's important to recall that you will not always be able to take in an income... you'll eventually prefer to retire.

 

You likewise can't count on the social security system to do what you anticipate it to do. As we have seen with Enron, you likewise can't necessarily depend upon your company’s pension plan either. So, once again, investing is the key to guaranteeing your own financial future, but you have to make wise investments!

4 Smart Tips to Using Credit Cards

Plastic money, which comes in form of credit cards, is really loved and highly used. There is nothing you cannot purchase with one swipe of the credit card. Credit companies make a multi-billion dollars kill every year on credit card users. This kill is made when they deduct their charges and when they fine you for late payments, transfers and over-limits. However, a credit card can be a good servant if used wisely but a bad master when used unwisely. As a matter of fact, you can even get bonuses when you learn how to wisely use your plastic. The following tips will be of great help to you.

• There are many credit card companies to choose from; choose the best. The best credit card you can have is one that has good rates of interest and an open bonus system. Some credit cards usually have rewards for you, if you use it wisely. The rewards range from cash back to college fees for your kids. You can have a look at the customer reviews on a credit card before choosing it to be your plastic. Such reviews will give you the best image of the credit card, and the experiences of other customers will help you make the right choice.

• Avoid carrying balances on your plastic. Credit card companies reward those who have a clean record when it comes to having balances in their credit cards. Paying off the balances usually relieves you of the burden of paying huge amounts of interest. Make it your aim to pay off any balance in your credit card ever month.

•  Learn how to communicate with your credit card company. When you have a balance that has been forwarded to the next month, pick up your phone and talk to your credit card company and see whether it is possible for the interest rate to be cut down. However, you can only benefit from such a step if you have previously kept a clean record of clearing balances with the company.

• Avoid cash advances like plague. As a matter of fact, use cash advances only when you are faced with an emergency and there is no other way out. It is very easy to ask for a cash advance, because when you get it you feel as if you have been given free money. However, such advances usually attract heavy interests and charges when you delay payment. 

Use these smart tips when you use credit cards and then you will not feel them to be the monster that they are usually touted to be.

Debt Consolidation and Debt Refinancing—Ways to Become Debt-Free

The fact that you are reading this article shows that you have come to the decision that you want to reduce your debts, and this is quite commendable. However, consolidating your debts is not as easy as it sounds; you need strategy and determination.

 

You first need to know the adverse effects that debts have on you. You may be in dire need of property, a car or starting capital for business, and you may need financing. As long as you have a trail of debts after you, then you can rest assured that no financer will look your way. Therefore, your hands become tied. 

 

Debt consolidation is usually the first step you should take in mending your broken credit history. Debt consolidation does not make all your debts vanish into thin air; what this does is that interest rates go down when debts are consolidated. The fact that you pay less interest on your debts means that you are able to pay your debts much faster than you would have if you had not consolidated them. There are many financers who give nice debt consolidation loans, and you should consider getting one. I must mention at this point that the better your credit history is, the easier it is to get a debt consolidation loan.

 

You might want to consolidate your debt by other means except getting a consolidation loan. Well, if you own a home, there is good news for you. You can put up your home for a mortgage refinancing scheme that can be used to pay all other creditors, leaving you with only one – the mortgage financier. 

 

However, if the above options do not suit you because you are limited due to one reason or the other, then all is not lost. You can get yourself a debt management agency to get the consolidation job done for you. The advantage with such agencies is that they can get your debts consolidated without you necessarily having a home or any other form of security. Consider consolidating your debts especially when you have gotten to a point where your debts are unmanageable. 

 

You can do the application online to the relevant agency. Searching for the agencies via the internet is advantageous because you have a range of agencies to choose from. Go through various agencies online before deciding on which one you will choose.

How to Become Financially Free by Year End

Becoming financially free by the end of the year is possible if you take control of your money and life style and stick to your intention as the highest priority. Even if you are in debt right now, with some planning, you can end the year with savings in the bank if you take time to do some financial planning now and make goals to help you achieve your objective.

Begin by taking a personal inventory about the true state of your financial affairs as they look today. Create two columns and in one column list the money saved and assets you have available and your regular salary or other source of income The goal of financial planning is to be able to pay the bills in the second column from what is available in the first column and still save money.

• The second step is to create a weekly budget. Base your budget estimate on your weekly income.

• Begin by estimating your weekly income before you pay bills or do anything else with your money.

• Put a minimum of 10- 20% of your weekly income before bills into a savings account.

• Then work out how much you expect to need to pay in bills this month. Include all debts as well as utility and other bills you may have or expect to receive. Ensure you budget to pay more than the minimum amount on your debts. If you only pay the minimum required you will not achieve your goal of being debt free. 

• Divide that amount by four and this will give you a weekly amount you will need to subtract from your income to cover your end of month bills. 

• Allocate any remaining money for personal use, to increase bill repayments or to increase savings.

The third step is to look for alternative income sources if your expenditures (not including personal use money) are greater than your income. This may mean taking a second job or looking for a higher paying job. Short-term pain will equal long-term gain. 

Stop using any credit cards and never use them to pay for food or clothes or utility bills. Repay them as soon as possible to reduce interest on repayments. 

By focusing on these steps, your financial freedom by this year’s end is very achievable. 

Managing Festival Expenses—Celebrate without Feeling the Pinch on the Wallet

Festive seasons come every year, and these are seasons in which retail traders make a killing. TV and radio stations make a lot of money on advertisements in such festive seasons. The online sites are flooded with advertisements that are very glittery and catchy to the eye. Everybody is caught up in the festive mood of the season, and the cash in their pockets starts to itch. When this happens, people start buying whatever they set their eyes on and they spend even without thinking; after all, tomorrow has its own shares of trouble, doesn’t it? So why deprive yourself of today’s pleasures for a tomorrow whose materialization is not even guaranteed?

 

Well, festive seasons will always come as long as there is a year and a calendar. Therefore, do not get too fussy with them. Be very practical and sensible as you spend during a festive season. Do not buy what is somewhat unnecessary; why invest $200 on a decoration that will be used for a few hours only to be disposed off the next day? Be very innovative and creative so that you will not have to buy everything. Consider going for a one-day lesson on making nice ice cream, yoghurt, ketchup and hot sauce. This way, you will never have to worry about such things when you are hosting your guests during a festive season. 

 

It is an all-time practice to exchange gifts, say during festive seasons of Easter and Christmas. However, it is not necessary to do so. Okay, before you kill me, let me explain why and show you how. You have a family of say seven (dad, mum and kids). You have short term and long-term goals as a family, say moving into your own home or getting a new car or starting a business. If this is so, what is so hard in having a family discussion and deciding that you will not do the religious exchanging of gifts for the sake of your family long term goals? 

 

It is not easy to resist spending on the glittery and expensive wares for the festive season, especially when you know that you can use your credit card to make purchases. However, resist over spending as much as you can. This way, you will be able to enjoy the whole year without paying debts you never budgeted for in the first place. Delayed gratification is the secret.

What Financial Freedom Actually Means

With the cost of living constantly rising and people’s personal debt on the increase, the question of financial freedom is in most people’s minds. How to achieve it and live a life that is debt free, or at the least, where the ability to pay every day expense’s and provide for the family without needing to go into debt is the goal for most people. 

 

Achieving financial freedom need not be difficult. People with a poor credit rating can turn their lives around and achieve a better rating simply by making financial goals for their life. Financial planning is not just for the rich and famous. Anyone who wants to achieve financial freedom must and should engage in financial planning. 

 

Financial planning is about taking control of your financial situation instead of allowing it to control you. It is about creating goals and then committing to them. The reward for this action is the financial freedom you are craving. It will enable you to be debt free and saving money regularly, while also having money to spend on the things you enjoy most in life. 

 

Achieving financial freedom involves three major steps that you should plan on.

 

Creating a budget

 

Creating a budget means ensuring income does not exceed expenditure and the goal of the budget is to create a life style plan that covers all expenses and provides extra for saving and personal spending. It involves not only listing the current income sources, but potential other sources to increase income if required. The interest paid on debts is a constant drain on finances. While it may seem logical to pay out small debts and then focus on the large ones, in fact paying off the larger debts first will save money in the long term. 

 

Living by that Budget

 

A budget is only as successful if there is commitment to live within the budget and resist impulse buying and anything that may cause voluntary over expenditure. The exception to this rule is the true emergency, which although not budgeted is covered by the savings plan you have put in place. If you have plans to buy household furniture or other expensive items, delay doing this you are debt free

 

Increasing Savings

 

Allocate a weekly fixed amount of money as savings. Do not compromise on this amount for any reason. It is your key to future financial freedom.