Capital Management Services- 8 Simple Money Management Tips As my dear old grandmother used to say, save 30%, use 30% to pay bills , enjoy the 30%, and always hold 10% for emergencies.. Home economics at its humble best, but if you stick to it, and as a rule of thumb this genuinely works. But let us dig deeper and look at specific, shrewd and basic money management tips which will compliment your life’s financial balance sheet - Accounts payable and receivables.
Create A Budget This common sense move is vitally important as you have to know where every single dollar comes from and where it is going. Take it from me this will make a huge difference to the management of your money. Once you have created your budget, abide by it at all times. Track Your Net Worth & Money Goals Invariably this will entail redeeming outstanding debts, or saving for a house deposit or, that dream holiday you have always wanted. Once you do this, it will prove to be an eye opener and more so when you see the numbers change monthly. Organize Your Savings & Investments Quite simply, it is not wise having all your money in one account. Have a short term savings account, a long term savings account and finally, an emergency account which is easily accessible. Look at investment products which pay a fixed income and compound this income. Max out your annual tax free investment allowances. Automate Pay as much as possible by way of direct debit, including but not necessarily limited to debt obligations, but rather investments as well. This is quick, easy and simple and far from time consuming.
Capital Management Services- 8 Simple Money Management Tips
Sinking Funds These allow you to keep your mind clearer and facilitate the requirement for medium term monetary expenses. For example, have a sinking fund for birthdays, Christmas and other special occasions. Set up one for car and house repairs.
Organize Your Debts Write them all down together with their respective rates of interest and ascertain a way you can optimize them. Could you for example, get a zero per cent interest rate card? Can you get a low interest rate loan in order to consolidate all your debts? Allocate Additional Money If you hit an additional windfall of money, birthday gifts or a tax refund, implement a method of allocating this money wisely. For example, put it towards paying off high interest debt obligations. Start Investing In one succinct sentence this is the most important tip of them all. Start of small and regular, even if it is such basic investment products as index funds. Build up your knowledge of investment matters, and look at blue chip stock plain vanilla investing.
Capital Management Services- 8 Simple Money Management Tips Understand the different types of investment risk and the importance of capital market investment diversification. Put simply, educate yourself on all matters pertaining to investing. In summary, most of this is common sense and logical, but where money is involved many of us depart from the realms of common sense finding ourselves in choppy financial waters. Capital Management Services have the knowledge and expertise to help you in money management. They very well know money management and have team of experts.