An empty wallet at the end of the month is something majority of us are part and parcel with. Financial trouble is something all of us have to deal with at some point of life, and the good part is that with a little bit of planning, understanding and management, you can actually solve some of the most common financial issues.
PROBLEM: Repaying education loans
Being a great student, choosing the best university of your choice that excels in education and opportunities for future sounds like a perfect deal, however, when it comes to repaying that education loan, you find accommodating it with other expenses like rent, food, etc. is something your initial salary can’t afford.
Simply make a loan repayment schedule that will help you easily learn how much money of yours is going into your education loan. This way you will begin to save money properly and not run short of it without a forewarning.
PROBLEM: Trouble organizing your financial options
It all starts from getting a job and the overwhelming feeling that you’ve started earning. Hence, you go on a spree of spending lavishly in shopping, buying gifts for people, food, etc. It is only later by the month end that you realize you are left with not even a penny, and hence, investment is a far off dream, since you don’t even have any savings in the first place!
Prepare a sheet in your planner identifying your income as well as expenses. Always remember to keep a big amount separately as soon as you get your salary, which means you have a saving! As you develop this habit, your investments will be worthwhile since you need to begin saving from pretty young if you want successful investments in the future.
PROBLEM: Using the credit card
The concept of credit cards seems pretty appealing! You buy anything you want, without having to pay anything from your pocket. However, you do bump into a hefty credit card bill at the end of the month, making you wide eyed. Then to pacify yourself, you look at the minimum amount you can pay for your credit card bill and adopt that policy to go ahead, not realizing that the outstanding amount of your bill only keeps getting bigger and bigger as months pass.
Will power. You need to understand and control your temptation of taking your credit card wherever you go and swiping it. Instead, leave it home and pay with debit card or cash instead, so that you have a control on your spends, and you don’t increase your credit bills either.
PROBLEM: MAINTAINING A PROPER BUDGET DAILY/MONTHLY
Maintaining a proper budget for your expenses can be tricky as the worry of the future always haunts you, be it in the form of education, wedding, or just random expenses.
Failing to plan is planning to fail, and you wouldn’t want to do that. Begin your months with a proper budget plan wherein you list down your short-term as well as long-term financial goals and religiously abide by the same in order to maintain proper savings, knowing how much to spend and how much to retain.
PROBLEM: A financial emergency
It can happen to anyone that despite your savings and budget planning, a huge unexpected financial emergency bumps into your life, washing off all the money that you had saved with so much effort.
Try using high-interest savings accounts so that you can always stock up those emergency funds, and keep them aside for all your future savings. This is the perfect way you can overcome those unwarranted financial storms that are totally uncalled for.
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