4 Tips For Better Financial Situation in 2017 Each of us is subject to different conditions from the others, but you must do this step in order to prepare for unexpected events.
Funds for emergencies:
Finance your resources are exposed to sudden setback when they get sick or lose your job, and if you do not have the necessary funds for emergencies of this, you can refer to the savings that you saved for your future goals. As for the person who earns a salary, it means starting the process of saving from scratch. Besides, most of us, the loans should be repaid and thus any emergency situation that may lead to a failure to pay, and this could jeopardize your credit history. It is necessary to have available an emergency fund, in order to possess the ability to meet your expenses for a period of between four to six months in case of emergency. In case you do not have enough in the account, calculate the amount of emergency ideal amount that you need, and start saving immediately to reach the desired level.
The achievement of financial stability requires saving four months of income. In the case of families with children, they need to provide six months of income at least.
Pay Yourself First
This basic rule concerning the understanding of a simple equation: Income – Savings = expenses, which means that no matter what your income is, you first need to allocate funds in order to save and then make purchases and optional routines. This method ensures you not to overlook the important contributions of the basic goals in life such as retirement, for example, it can be achieved through systematic planning to invest or automatic transfer to your child’s savings account.
To transfer, for example, that the monthly income of 10,000 dirhams, Based on the way, “Pay yourself first” savings on top of the list comes not at the end. In the sense that you have to resort to automatic deduction of the amount of AED 1500 (15%) of each paycheck to file it in a savings account. You can pay your bills and rent / housing loan and all the other expenses of the remaining amount.
Other helpful tips:
Pay your bills on time to avoid late fees, interest and penalties. Do not forget to check invoices to monitor any error or an increase in the amount deducted.
It’s not about the size of the money earned by even amounts to hoard it.
Good financial plan the advantage of being flexible and subject to change depending on changes in your life and your circumstances. It is necessary to review the monthly budget and make modifications.
Although the financing of university education for your child is one of the most important gifts you can provide for him, but it is one of the most expensive gifts with regret.
Did you know that it is possible that inflation affects the pension income due to increased costs of goods purchased by the lower value of your savings. Put inflation into account when calculating retirement needs.
Early plans for financial freedom will be too late if you’re on the verge of retirement. Think of the income you’ll need in retirement and how to get it.
Four other strategies to help you adjust your debts
1. Get a low interest rate
Ask your bank, which got it on your credit card to reduce the rate of profit or converting high credit card debt rate of profit to another card at lower rates.
2. Assistance loans to pay off debt
Apply for a loan to pay off debt, as long as the rate of profit is lower. Where you can pay off the debt more quickly if this is the rate that you pay less in order to turn your money to the amount borrowed. More importantly, you should pay a single monthly payment only.
3. Improve the debt payment strategy
Then pay with the greatest profit rate debt at the beginning. Perhaps requires a longer time to pay off, but you will be able to save money by snowball strategy. Alternatively, you can pay off your loans smaller first to ensure the disposal of payable bill.
4. Pay more than the minimum
Many people fall into the trap make small payments enter the debt circle. Because of non-payment, increasing balance. In order to avoid this, try to add any bonuses or additional funds on balance, this would reduce the time period for the repayment of debt significantly.