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Managing finances to keep the future safe is important. It is a time-consuming activity and takes a good amount of insight in finance of a person. Every year people set new financial goals for the upcoming year. Some try to curb the spending to save for the future or to maybe take a trip. Even if the goal is to spend more time with the loved ones, it needs a good amount of financial security so that one can live with working. Most of the people fail to achieve these goals in the next 3 months of setting up the goals. But it is never too late to try to get back on track.
Here are the easy ways to save your money so that you achieve the financial goals for the year. You can try to achieve these:
Check your Spending
Make a list of all the confirmed expenses that are large in magnitudes like cable subscriptions, gymnasium membership, Internet bills and post-paid plans for mobile. After making the list, check the usage of these services.
Lets say you have a post-paid bill plan which gives you 1000 messages or 2000 minutes of calls. But you use only 800 or maybe 1000 minutes. Take an average of the last 3 months and check your usage. If the usage is substantially lower than the subscribed services, the subscription plans can be changed.
Similar kind of checks can be performed on the other services too. Generally, we miss out these checks and keep on spending money which could amount to a large sum.
Pay on Time
Whether it is the payment of the bills for the services one receive or it is the payment of the monthly installments of a loan, it should be paid in time. There should be absolutely no delay in the payments as it ends up in paying more money in fines. And the costliest type of fine is on the credit cards. Credit card bills should be paid before time. The rate of interest on credit card bills is the maximum.
Save First, Spend Later
There is a common habit when it comes to saving the money. After receiving the monthly income, the bills are paid and the money is spent to fulfil all the monthly needs. At the end of the month, the money which is there in the bank account is considered as a saving. This is not the right way to save money.
First thing on receiving the monthly income should be the deduction for the savings. At least, 15-20 % of the monthly income should be set aside as savings. The money left should be used to pay the bills and for the other expenses. This makes sure that the spending doesnt exceed the limit and helps in saving a particular amount every month.
Get out of debt
Whether you have a home loan, car loan, education loan or any other loan, a plan to pay always works. Make a plan to pay these loans before time. This will help save some money to be paid in interests. A tentative plan should be outlined to for the repayment of the loans.
If you expect a bonus, try pre-payment of the loan and if there is an increase in the income try to get the size of your monthly installments increased.
Investments
The investments should be done in schemes which offer the highest rates of return with 100% security. But some people have an appetite for risk, depending on this one can invest in place which is riskier and gives more returns. But then keep an open eye and on the toes.
