You and Your Money

WOGIAM By WOGIAM, 12th Jul 2014 | Follow this author | RSS Feed
Posted in Wikinut>Money>Money Saving Tips

The reality of the long term management of finances, money and financial security are not taught in schools, it is a lesson learnt in life, by individual experiences, observing the experiences of others and at other times from what people tell us.

Budget, Save and Invest (BSI)

It is adviseable for everyone who earns any kind of income to set short., medium and long term goals. This would help to make the most of your earnings and build a nest which will be useful in times of emergencies.
Budgeting, building savings and investing are the surest ways towards you achieving your long term goals such as owing your own business, taking early retirement etc.
The BSI pattern are a few of the tried and tested tips which can make financial security possible.

Budget:- This is one of the most effective way of keeping track of your spending patterns and expenses.
Drawing up and sticking to a budget plan helps to prevent and/or reduce excessive and unnecessary spending. Budgets can also support financial discipline as any extra income left after spending on items listed on your budget can be immediately set aside into a savings account or investment scheme.

Save:- It is advisable to build up savings, starting with a affordable sum and maybe setting a realistic goal and paying money regularly into a savings account. Savings accounts are preferably opened with reputable financial institutions.
A direct debit instruction is a good method to ensure a minimun amount is paid into a savings account from source reducing the chances of your income being spent on other things.

Invest:- Many people do not take advantage of investing in the stock market, investing in stocks, shares and bonds or the real estate/property market. Investing in meduim and long term instruments is a ideal way of putting away funds to meet long term goals.
Financial companies which specialise in buying and selling stocks can help you maintain and grow a suitable investment portfolio.

Managing your money

Avoid Debts:- This is easier said than done as the cost of living is so high, it is difficult for people to manage everyday expenses based on their salaries and incomes.
Credit cards and pay day loans are easy ways for people to fall into and stay in debt, making savings and investments almost impossible.

Credit facilities should be used with caution and all balance paid off in line with the terms and conditions of the credit agreement. People who find themselves in debt need to focus on chanelling as much as possible of their earnings into reducing their debts with the aim of paying them off completely.

Personal Development:- You should make the effort to improve knowledge about handling your finances and money matters.
Research and reading as much as possible will help one's personal development. There are genuine courses, seminars, information, professional advice and services about financial management avaliable tailoured to provide appropriate choices which may suit each individual and their financial objective.

Saving and reducing spending will require sacrifice in the short and middle term but it is worth achieving the untimate goal of financial security in the long term.

Tags

Debt, Investment, Saving

Meet the author

author avatar WOGIAM
I read almost every and anything.
I love books, travelling (when I can afford to), cooking and eating.

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Comments

author avatar snerfu
12th Jul 2014 (#)

Very useful information, nice article.

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author avatar Helen Thomas
12th Jul 2014 (#)

Great Article ~ WOGIAM. Thanks for posting it.

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author avatar Margaret Michel
12th Jul 2014 (#)

Great article! Unfortunately, I've never been good with the topic!

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author avatar spirited
12th Jul 2014 (#)

Good summarising of what is required to not just live from day to day.

Finding someone to trust is hard though, even the largest bank here in Australia was recently involved in a scam, investors lost millions following bad advice, where the advisor creamed off his commission without caring about the customer.

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author avatar cnwriter..carolina
13th Jul 2014 (#)

great information indeed...may thanks...

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author avatar WOGIAM
14th Jul 2014 (#)

spirited, thanks for your comment. Sad to read about another bank involved in scams/fraud and losses. One can only pray and hope the banks we save with will stand the test of time.

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