No matter how hard we work and how much money we make, it seems that we are always juggling our finances and trying to make ends meet. Between the monthly rent or mortgage payment, the high cost of utilities and the costs of meals and groceries there’s hardly anything left at the end of the month. When you add in commute expenses, child care bills and health insurance costs you’re lucky to even have enough for a short vacation each year.
In addition to managing all your monthly expenses, it’s critical to consider and plan for the future too. If you are fortunate enough to be a business owner, you can improve the financial future for both yourself and your employees by retaining a reputable firm that specializes in offering professionally-managed retirement services accounts. After they meet with you and understand your financial and business goals they can create a customized financial program that will let you shelter taxable income now and will provide the funds you need for future years.
Follow the Financial Golden Rule
If you are looking for a simple, powerful rule to guide you through your working years, it should be to ‘get paid all that you are worth and always spend less than you earn’. This amazing adage is so easy to understand and yet at times it can be difficult to follow. By making sure your adhere to this maxim you will find that your nest egg for the future builds year after year.
A lot of us are really proud of the work we do and yet we find it hard to request compensation that rewards us for the true value we bring to a company. It’s important that we actively seek to be paid what we are worth, even if it means seeking a better job elsewhere. The extra money we receive when we ask for better pay compounds and that makes a substantial difference over time.
Put Off Impulse Purchases for 30 Days
When you are working really hard and putting in extra hours week after week it’s really tempting to reward ourselves by making a major purchase. The reward centers in our brain light up when we think of getting that giant big screen TV for the Super Bowl or buying that expensive jewelry we think we deserve and need. Whenever you feel that insatiable desire growing take a 30 day time out to clarify your true needs.
Try waiting 30 days before you make your purchase. You can take the money you almost spent on the item and put it in a sort of personal escrow in your savings account. If you do get the item later the money will already be set aside. At the end of 30 days, see how you feel about the purchase now. If it was a craving versus a need, you may find that the item no longer calls to you in the same way.
Pay Off Your Credit Card Debt
Credit card payments are the Loch Ness monsters of the financial seas. It’s so easy to lose touch with financial reality as you pull out plastic when you ‘pay’ for things. Then, month after month, the outrageous interest rates and interminable payments will pull you under as you begin to drown in a sea of debt. The credit card companies now own you, and they refuse to let you up from the deep.
Even when the economy slides, you’ll still find that credit card interest rates are often at loan-shark levels. While they can borrow money at bargain basement rates you are stuck with monthly bills that reflect 18, 21 or 28 percent interest. Each credit card bill has a little box on it now that shows you how many years it will take to pay off your debt if you make the minimum monthly payment. When you see that if could take twenty-plus years then you know it’s time to pay these debts off now.
Even with our monthly expenses, it’s possible to save money for the future if you make smart money moves early on in your career. By paying off credit card debt, postponing purchases on things you don’t really need and making sure you get paid what you are worth you can create an excellent financial future for both you and your family.