Ever wonder how the “successful” people do it? You know, the ones with jobs like yours and a family like yours, but with more things and better vacations? Well, wonder no more. With these 10 tips, you will learn the habits of these people and get yourself started on the road to your own financial happiness.
- Earn More. Spend Less.
Sounds to simple, right? The fact of the matter is millions of Americans are underpaid for the job they do. Do the research and see what your job is really worth, and then talk to your boss. It might be worth it.
Saving money doesn’t have to be a hardship. There are literally hundreds of little ways to save money and they all add up.
2. Make a Budget and Stick to It
This is not as bad as it sounds and it is very important. No matter how much or how little you make, you need to know where it’s going if you are going to set and achieve financial goals.
3. Payoff Your Credit Cards
Again, a no brainer, but something that many people ignore. Try to consolidate them into one account with a lower interest rate. Look for a card that doesn’t charge interest for a few months on balance transfers and pay that off in that time if you can. It will save you a fortune in interest. If that’s not an option, tackle the cards with the highest interest rates first.
4. Take Part in a Retirement Plan
If your employer offers a 401K or other plan, you should be adding to it. This is a smart investment in your future and offers tax benefits.
5. Save Money
This means to actually have a plan to save a certain amount every week or every month. If you don’t pay yourself first and wait to see “what’s left” you won’t do it. Consider having 5-10 percent of your pay automatically deposited in a separate savings account. What you don’t see, you won’t spend.
6. Invest Wisely
Now that you have some savings, it’s time to get a better return on them. Get some good expert advice and maximize those dividends.
7. Look at Your Insurance
Most people need life and or disability insurance. If you have dependents, it is a must. However, many people are paying for more than they need, or for duplicate coverage. Get all your policies out and make sure you have enough, but also make sure it’s the right kind.
8. Get the Most From Your Benefits
In addition to a 401K plan, many employers offer a wide range of benefits. If you are not using them to their full potential, you are throwing money away. Check with your HR department and see if you can change health insurance options, or if they have flexible spending accounts available.
9. Make a Will
Write one and keep it updated. This may not seem like a financial tip, but successful people have them and so should you. If you have dependents, you need a will.
10. Keep Records
Accurate and organized records are a must. Come tax time, these will be invaluable. If you are missing receipts or paperwork, chances are you are missing deductions, too.
So how are you doing on these 10 tips? Not so good? If you are doing six of these or less, now is the time to start working on them. With careful planning you can soon incorporate all of them into your life and be on the road to financial success.