5 tips on becoming financially prudent

5 tips on becoming financially prudent

Becoming financially sound and okay in life, especially after retirement means one has to deny himself/herself and work very hard rather.

5 tips on becoming financially prudent

Save until you have cash for that car

Separating one’s wants from their needs is a pretty difficult task for lots of people to achieve. But below are five of my favourite tips on spending smart and saving.

Once you’ve saved enough, you can start living lavishly!

1. Always work with and within your budget. Balance your checking account. This will help you to start, monitor and stick with a budget. A budget doesn’t have to be dizzying; it can be pretty darn simple.

2. Prioritize long-term goals. Saving for retirement should come before setting aside money for children’s college costs.

3. Don’t be in a rush to own that car, house, phone or whatever, you don’t have the money for now Be patient; save until you have cash for that car, home theater system etc.

4. Do not overspend. Issue yourself an envelope filled with your monthly fun money. Once that cash is gone, wait until the next month for the next “fun” expenditures.

5. Our last tip is very critical, especially in this day and age of economic crisis. Have an emergency fund. This is your parachute in case a job loss occurs or a huge expense pops up.

 

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