Hi folks… This is the continuation of the last post of mine. Hope you’ll enjoy these one also.
- Avoid and manage your debts – You need to set up a debt elimination plan, if you have any credit card debts or any other personal debts like loans etc. List up your debts from lower amount to higher amount. You can target the topmost debt amount, which is the lowest of the list. You can easily pay off that amount. Gradually you will pay off the whole list of debts. Then calculate the total amount of the payment and add it with the next debt amount in the list. Continue this procedure with your extra saving funds and go along, until you pay off all your debts. This might take few years, but it’s a quite easy and required process.
- Implement envelope system – Envelope system is a budget based technique. Suppose you maintain 3 funds to pay off your debts easily – 1) Daily groceries 2) one for gas, 3) one for foods. Gather these amount on payday, and put them in three separate envelopes. By this way you can easily calculate and track, how much you have paid till now. It will help you to manage your money when you truly need it badly. You can’t over spend by this way. If you notice that your budget is finishing very fast, you must rethink your budget.
- Pay bills immediately or automatically – A very good habit is to pay your debt burdens, means all bills as soon as possible. Try to pay as much as possible also, as the more you’ll be paying the lesser you have to pay in future. If you can initiate an automatic deduction from your account to pay monthly bills, it would be great. For those who can’t, they can utilize bank’s online check system for making regular automatic payments.
- Do research and read more – The more you read about personal finances, the more you’ll know about different tips and tricks to save money.You’ll know how to live a simple life with saving more. You’ll learn new strategies to manage daily expenses in such a way that your costs will be lower and you can gather funds for future utilities.
Search new ideas to increase net worth – You can try new ways to grow your net worth. You can lower your debt, you can grow your savings or develop your income capacity, whatever you want to do. Always find new ideas for growth of income. As soon as you can see increase in your net worth, you’ll be boosted to work more hard than ever.