Sometimes, managing your money can seem very complicated. How you manage, spend, and invest your money can have a profound impact on your life, yet very few schools actually teaches these important skills. This might not be the most popular topic to discuss about, but it is essentially crucial as having a sustainable financial plan will lead you to achieve financial freedom.
Managing your money well simply means to understand the process so that you can keep your financial situation straight and easily understandable. It would be nice if you could have one magic formula or one easy trick that made it so you never had to worry about money again. Although learning to be financial savvy may take a while, but the basics are fairly simple and never change.
Here’s where you can get started with these 4 keys to escape the paycheck to paycheck life from SBH Corporate Group.
Tip 1: Start with Goals
The first thing you should do is to write specific goals about what you want to do with your life and your money. Finances can greatly affect many different areas of your life, such as your goal to travel the world affects how you will plan your finances; your goal to retire early is dependent on how well you handle your finances now. Besides, home ownership, starting a family, moving or changing careers will all be affected by how you manage your finances.
Once you have written down your goals, you will need to prioritize them. This makes sure you are paying attention to the ones that are most important to you. You can also list them in the order you want to achieve them, but for a long-term goal like retirement, you should be working towards it while working on your other goals.
Start by setting long-term goals such as getting out of debt, buying a home, or retiring early. These goals can help you focus your shorter term goals. Next, set short-term goals, like following a budget, reduce unnecessary spending, or stop using your credit cards. By setting specific and realistic goals, it’s easier to measure your progress toward them, and your likelihood of achieving them will increase. Overall, your financial goals should be a balance by making you feel happy, fulfilled and financially secure.
Tip 2: Create a Plan & Know Where Your Money Goes
A plan will help you reach your goals. The plan should have multiple steps, and the first part of your plan should be to get control of your budget. You will need to create a spending plan. Then, set a plan to get out of debt. After you have accomplished those two things, you should decide what you want to do with your money to reach your goals. The money you free up from your debt payments can be used to reaching your goals.
At this point, you should decide what priorities are the most important to you right now, as long as you are steadily working towards your long-term retirement goals, you can begin to focus on the most important goals you have set for yourself. Your goals, along with an emergency fund, will help you stop making financial decisions based on fear and help you get control of your situation.
Moreover, it is also important to make sure your expenses aren’t exceeding your income. The best way to do this is by budgeting. By making small, manageable changes in your everyday expenses can have just as big of an impact on your financial situation as getting a raise. Remember, budgeting is the key to success. It is the tool that will give you the most control of your financial future. Your budget can help you reach the rest of your plan.
Tip 3: Start an Emergency Fund
Okay, this might sound strange to some of you. No matter how much you owe in student loans or credit card debt, and no matter how low your salary may seem, it’s wise to find some amount, or in fact, any amount of money in your budget to save in an emergency fund every month.
When you have money set aside for emergencies, you’re not tempted to go into credit card or other debt to deal with it. Everybody has the occasional emergency, and if you are already prepared when it comes, that’s one less thing you will have to worry about in a time of crisis, and you won’t have to spend months or years paying it off.
Having money in savings to use for emergencies can really keep you out of trouble financially and help you sleep better at night. Also, if you get into the habit of saving money and treating it as a non-negotiable monthly “expense,” pretty soon you’ll have more than just emergency money saved up – you’ll have retirement money, vacation money and even money for a home down payment!
Tip 4: Don’t be Afraid to Ask for Advice from SBH
If you are having trouble paying your bills, you are not alone. Many are deep in debt, and not everyone can work overtime or a second job to pay down that debt. That’s where financial management consultation and other financial options come in.
For more information on financial management consultation, you are welcome to contact us or make an appointment to meet our consultant + earn 15% Loyalty Points from your total service payment! Our consultants will work with you to develop a personalized debt repayment plan. SBH Corporate Group does not provide loans or financing.
So, start managing your finances at your own time, at your own home, at your own rules with SBH Corporate Group. Stick with your goals and achieve financial freedom!
Contact No: +603-2380 4180 (Office) / +6019-205 0919 (Melvin)
Address: 29-3, Jalan 10/116B, Kuchai Entrepreneurs Park, Off Jalan Kelang Lama, Kuala Lumpur, 58200 Kuala Lumpur.