Changing your living status can drastically change your lifestyle and your financial problems. But you don’t worry, because you will get the solution if you are cautious about how you spend your money.
If you are young and buying your first home, it can be a critical time in your life. Nonetheless, it’s also extremely exciting to imagine that you are setting off to own your property interestingly. This is really the American Dream at work! Chances are, your mortgage payment will be more expensive than whatever rent you were paying before you were a homeowner. You might be stressed over how to budget after you close on the house, yet you will catch on speedier than you might suspect. If you couldn’t manage the cost of the house, the bank wouldn’t have given you the loan, so motivate prepared to crunch some numbers and appreciate the first year living in your new abode.
Pay Attention to Your Lending Officer
Prior to your loan is even endorsed, you’re lending officer should sit down with you at the bank and give you a snappy once-over of the numbers. If they don’t, you should ask them to do as such, or discover a lending officer that will, it’s absolutely OK to shop around for lenders, especially in this economy. When you meet with your lending officer, don’t be reluctant to ask questions and/or take notes. When you lock to your interest rate, they will let you know precisely what your mortgage payment will be, and if you choose to keep your taxes and homeowner’s insurance in escrow, they will calculate that in, as well. Pay attention to that month to month number, and use that to set your new budget.
Amongst the different banking cards, credit cards have proven to be the most favorable option. However, when it comes to using a credit card, there is a huge financial responsibility you will need to take on. For one, you need to keep track of your expenditures. At the same time, you also need to consider the repayment dues and the interest rate. Additionally, if you make a late payment, there is a high chance it can affect your CIBIL score. The only way to ensure that the credit card will benefit you in the long run is to ensure that you develop an effective habit when it comes to using this card.
Make timely repayments
As a part of the credit card usage, you will need to repay back the borrowed funds over time. This is an important habit you will need to inculcate at the time you get your credit card. This repayment process reflects on your CIBIL score. Even a single delayed repayment will lower your credit score. Individuals with a perfect CIBIL score do not miss a single payment on all the credit lines they opt for. This is the same step you will need to take. In order to make this process convenient for you, ensure that you automate your payments so that you avoid any scope of delaying or missing a single payment. Ensure that the account connected to your credit card payment is well furnished for this purpose.
Maintain a minimum outstanding balance on your credit card
There will come a time where you will have an outstanding amount on your credit cards. This can occur if you recklessly use your card or impulsive purchases. Alternatively, emergency financial requirements such as a medical emergency may require you to use the
During this highly technological age, cash is trying hard to compete with electronic money, since nowadays a lot of people choose to use their virtual wallets. Here, you will read about the pros and cons of using an electronic payment system.
It is plain to see that electronic payment systems have more advantages than traditional banking services. Let’s see:
– Saves on time
Money transfer from one virtual account to another may only take a few minutes, whereas a wire or postal transfer may take a number of days. Besides, you have to spend some time to go to the bank or post office and wait in line.
– Controls expenses
Even if a person is willing to control his disbursements, it can take a lot of patience to jot down all the expenses, and this takes up a huge part of the total amount. On the other hand, the virtual account comprises the history of all the transactions, including the store name and amount spent. Best of all, you can check it whenever and wherever you like. In this case, an electronic payment system works to your advantage.
– Reduced loss and theft risks
You will not make the mistake of losing or leaving your virtual wallet behind, and it can never be taken by robbers.
– User friendly
All services aim to reach out to a greater number of audiences and so, their interface should be easy for users to understand. Moreover, users can always ask help from the support team since they work 24/7. You can receive an answer by means of the forums as well.
– Convenient to use
As long as you have access to the Internet, you can carry out transfers anytime, anywhere.
“Money is the secret to all the keys”, says a popular quote. It won’t be exaggeration if said that a sound financial status is the key to a happy life. It is a known fact that a sound financial status can handle majority of the so called life problems. Though many say that money cannot get you happiness, the fact remains that money can get the various happiness contributors. In addition, in the current scenario various health experts say that one of the major contributors to health and mental problems is financial problems. Financial problems are one problem that seems to be affecting all earning capacities for the following reasons:
Mismanagement of savings and bad investment planning
Imbalance in the earnings and expenditure.
The ratio of increase in salary is not matching with the ratio of increase in the spending style, resulting to deficit.
Despite the fact that these are the major reasons for financial problems, human tendency is to put the blame of the financial crisis on external factors like lack in salary hike, sudden expenditure etc. However, this imbalance in financial status can lead to various financial problems like:
Loss of self confidence: As you lack financial strength, you stop taking risk and start doubting your skills and confidence. You tend to behave safe that acts as a barrier to success.
Insecurity: As you have less money to spend, you start thinking that your friends consider you as a failure and therefore, wish to stay aloof.
Dissatisfaction: Lack of money makes you kill your desires and wishes leading to a sense of dejection and dissatisfaction.
Thus, with the above pointers, it is clear that financial problems need to be addressed effectively. So, here are some tips to know
Being independently wealthy roughly indicates that you are financially self sufficient and not dependent on anyone. This certainly is an enviable position to be in. This article will shell out some tips on how to become independently wealthy.
Who wouldn’t like a leisurely life, without the 9 to 5 grind, free of meeting the deadline or completing targets. You would probably find a majority of people desiring it and even succeeding at it to some extent. Yet, you would find a minority who simply have to grind it out just to make ends meet and safeguard their future. If you find yourself in a similar situation, wouldn’t it be preferable to have some cash stashed away for difficult times so that you can be financially independent?
And before your crafty mind starts thinking of how much money is needed to be independently wealthy, let me tell you, there isn’t a fixed number or amount. Financial independence is something that is achieved step by step, not all at once. While there are suggestions that financial independence and being independently wealthy are different, the underlying fact is that both goals target financial security. The paragraphs below will give you some ideas about this concept.
Steps to Become Independently Wealthy
1. Save, Save, and Save
– Regarded as the oldest rule in the book, this step is the first to become financially stable.
– Save a part of your income/salary (a substantial part), in fact, do not consider it be your income/salary at all, do not touch that money.
– Apart from spending for mandatory household
What makes a couple successful in their financial relationship? Ameriprise Financial surveyed over 1,500 couples (those married or living together for at least six months) to learn about their money conversations and how they make decisions. The results revealed eight ways you can improve the financial health of your relationship:
1. Understand your partner’s money mindset. It’s normal to have differing views and habits about money, but that doesn’t mean you can’t agree on your financial goals. Couples who report being on the same page financially work to understand their partner’s approach to money and keep the lines of communication open.
2. Make finances a priority and don’t give up. Couples who are willing to have the hard conversations and who work together to find financial harmony will reap the benefits over time. As you might expect, the study found that couples who had been together longer tend to have better communication and are on the same page when it comes to financial matters.
3. Agree on financial goals. It’s tough to pool your money with someone who overspends or who isn’t willing to save for the vacation you’ve always dreamed about. Sharing financial goals does bring you closer together, or at least it’s one less thing to argue about. To make it easier to save, challenge yourselves to add a timeframe to each goal so you know what you’re working toward first.
4. Assign and accept financial roles and responsibilities. Most couples split up tasks such as paying bills or monitoring investments. Clear responsibilities allow you to hold one another accountable without worrying if the cable bill was paid. However, be sure to work together on tasks such as retirement planning that requires close collaboration.