AseanOutlook.com – If you’re an adult right now, you might think of yourself know how to spend your money and income really well, because well, there are a lot of things that you’d want to buy, right?
Since it’s your money, you know how to spend it. But how do you spend it wisely? This is where financial advice comes through to save the day.
So, let’s start with the first one.
- Contribute to a retirement plan
If you work in a job where your employer offers a 401(k) plan, consider contributing if you can afford it. Often with this plan, your employer will contribute the same amount that you put toward your account up to a certain percent. But if they don’t, consider getting IRA (Individual Retirement Account).
- Stick to your budget
One of the financialadvices that help to keep you afloat and manage a healthy finance is to budget everything that you do. Because if you don’t, how would you know where your money went?
Always set up a budget, whether you’re just starting out, or you’re an established employer, always set up your budget and don’t blow all your income on one thing that you probably don’t even need.
- Get paid for what you’re worth and spend less from what you earn
This may sound like an obvious financial advice at first, but where we are right now, most people don’t know what their job worth.
They’d settle for very, very low income or payment as long as they get the job. This obviously not what you want when you have a job. If you’re self-employed or a freelancer, don’t settle for low prices just to get people to buy your service.
Know your worth first, and after that make sure that you don’t spend more than you earn.
- Invest your money
If you have some spare money after setting up your retirement plan or savings account, there’s no harm in putting them to good use as an investment.
- Maximize the benefits that your employment gave you
If you’re not a freelancer or self-employed, one of the best financial advice that we can give you is to take advantage of the benefits that your employer give you. These things such as flexible spending accounts, medical and dental insurances are all things that are worth a lot of money.
Maximizing these sorts of things help you save your money by reducing taxes or other out-of-pocket expenses.
- Keep good records
If you’re not careful in keeping your records clean and thorough, you’ll probably end up being unable to claim all of your allowable income tax deductions and credits. So, if you haven’t already, set up a system now so that you can use it all year. After all, it’s much easier than scrambling to find everything at tax time and missing those items that might’ve saved you money.
- Have a saving plan
You might’ve noticed that we mentioned saving plans on one of our financial advices above, but we didn’t go into detail why you’d want to have a saving plan.
Well, it’s simple. It’s for emergency. You won’t know when an emergergncy that requires a lot of money arrives. If you don’t have one at that moment, you’d find yourself lost and distraught and as such resulting in you taking desperate measures such as getting a payday loan.
This is a real issue that happens in every day life because people are too lazy to have a savings plan.
Resolve to set aside at least 5% of your salary to save before you use it for paying bills or other expenses. Or better yet, have the money deducted from your paycheck to be deposited into a separate account in case of emergency.
And that’s all that we can tell you about our top 7 financial advices that will change the way you live. We’ve mentioned this above already, but most adults don’t know and don’t care how they spend their money, and obviously this is an issue that needs to be addressed because It can lead them to some unpleasant situations down the road
So, we hope this article of financial advices will help you make better decisions as to what you can do with your money. That’s all from us from now, we’ll see you some other time with another article.