How do you create personal goals for 2022?

(4 minutes read )

                                       

 Financial goals help us to live comfortable life especially when we are retiring early. Every person has some goals in his life, so to achieve them it is required investment and a long period of time.

What personal goals should I set?
                                                                   How to set your financial goals? First, we make a list of our goals and think how to achieve them.But here we are going to talk some tips to help your personal goals easily.First you have to prioritize your goals so, most important goals is first and then less important is second.

There are some financial goals in your life. You must convinced yourself to write and and can move further.Some people do not pay attention to their goals,so they are confused at the end of the year. But only reason they have not a good start to finish the goal.
If your goal is to lose weight , then start exercise, or to pay off debts, then start now, or to buy a car, then make a plan to buy it or have a plan to long trip , then you save some money to your trip now.

• Control your Budget.

• Get out from Debts.

• Save your income.

• Avoid emotional Spending.

• Retirement plan.

• Control your Budget.

                      If you are not know where your money is gone?Then it is time to make a money budget.It is important to know how much money you spend on your basic needs , education needs and other luxury needs.Make a simple diary and note all your expenses like your bills, internet expenses.
There are many application for budgeting you can use to control your budget.You can download free application and use for monthly budget. Budget tell you how much money you spend and how much money remain in your pocket.

• Get out from debts.

                      It is important goal for new year , you rid out from debts. First you make your mind how to pay off debts? Its a common problem for most people they spend more from their income. So they make debts from banks, or credit cards.
You pay your debts first that is high interest rate and then less interest rate debts.Because you have a plan to live financial freedom.Reduce your debts take a priority in your goal as much as you can early.

• Make a savings habits.

Many people want to save money but they do not decrease their expenses. They have not plan how much save each month? Be strategic, take a step to automate saving to your account.

You should think about investment, how to multiple your income. If do not increase your income , then you have to decrease your expenses and some portion save for emergency.

• Avoid emotional spending.

                             Before going to super market,You think one minute, if there is no season of sale, you want to buy things, either you have actual needs or buy for emotional.Make a list when going to buy something. 
Emotional spending is that you buy something you not need, in some case, you buy a thing you really need.So question is how to control your emotional savings? If you feeling bore at home, then call to your friend and go for a restaurant for nice food. 

Choose more constructive behavior that will help you to with emotion .If you are feeling stressed out, then go for a walk. 
If you really buy something, make it simple like a book.To avoid emotional spending, you see alternative.

•   Retirement Plan.

                               You should think ahead, no matter what is your age? Calculate your net income what you have and what you need in future?You should manage your lifestyle and should start a retirement plan.
For making a retirement plan, first check your current situation, what you have this time.In other words ,you should your financial strength.You can start 5 year plan for save money with proper planning . Set your retirement age now, if you are young now age between 40 to 45, now you will be prepared financially and eager to grow your wealth. 

The bottom line:

                       Financial goals are not last goals in your life, your can revise them throughout your life.Track your personal finance on right track but to be consistent. Create a emergency fund account for your self for covering unexpected events.

Emergency fund is to fulfill your unexpected wants and needs.Do not beat yourself, just keep on track to manage your money. The beauty of the financial planning is to review your plan each year. Because there are many ups and down in life, so you well prepared about your future. 

You will do little things on weekly basis, then monthly basis and year by year, so that you will your financial goals.

If you study daily personal finance books, you learn new kind of information, if you are student, then it help you in exams.So make a habit to read personal finance books.

 First set one goal in your life,  you get it, then you move to another goal. This step you achieve now give you motivation and confidence to going on.

If you have any query about this topic, then write in comment box

 Tags: Money Savings, Personal Finance.

Why emergency fund is important?

The key points are:

• What is an emergency?
• How to build an emergency fund?
• Why is important to keep an emergency fund?
• Can I invest in my emergency fund?
• Where to keep emergency funds?
• How much emergency fund is enough?

• What is an emergency?

                               Your future will be safe to establish an emergency fund. Because life is full of unexpected events. So need of emergency fund is necessary.

 An emergency is the best solution to any unexpected loss, like loose a job, breaking down of cars, or you have to pay heavy taxes.

An emergency fund allows you to cover medical expenses and get out from debts. Emergency helps your peace of mind and gives you the confidence to cover expenses like rent and utility expenses.

• How to build an emergency fund.

                                                    Calculate your monthly income and your expenses. Make a monthly budget. Use the calculator to estimate the exact figure out, how much you need. Financial expert says you have three months to six months equal amount for emergency purposes. Suppose you set an amount of $ 15000  you save $ 1000 for each month and your target to achieve in fifteen months.

For this purpose, you save $ 1000 from your salary to accumulate the sum of money of $ 15000.                                                     

• Why is important to keep an emergency fund?

                    Money must be saved for the future. It is compulsory for any emergency needs, like loss of a job, heavy taxes, serious illness, or any unforeseen medical expenses.

Also,if you have an emergency fund, you have to be confident in worse conditions. Especially, it is an emergency fund is important, if you have debts, this will help you to out from debts.

These days coronavirus spread to all countries, the emergency fund importance has increased.

The emergency fund is the most important thing to set aside some income for yourself.

• Can I invest in my emergency fund?

                        If you have extra funds for more than six months of expenses then you should invest this amount in a stock exchange or any other kind of business. Savings in a bank account where you earn few dollars, but I suggest you invest in real estate business which is increased day by day.How to invest money read more.

If the investment is fairly liquid, where you withdraw your amount easily.                                       

• Where to keep emergency funds?

                                                  I suggest you keep in your current account your emergency fund because you can easily withdraw your money. You should keep your reserve fund in short-term investment.

Another high yield saving account gives you a facility to keep balance and earn high-interest rate and easy access to balance and can transfer money to another person.

You save your emergency fund where you quickly access and it is also safe. Your money has not been saved from inflation, You are losing your money from year to year. So you invest your money.

• What should the emergency fund cover?

                                                        Emergency funds cover all your unexpected expenses. It is to cover the repair of the car by accident damage and also repair of the house. Emergency fund cover in case you are unemployed.Emergency cover to insurance expenses and transportation expenses. This fund covers your extra marriage expenses. Emergency funds cover everything and give you a solid financial ground.

• How much emergency fund is enough?

                                                                 Start small even a single penny every month. Then you increase according to your income. If you are doing the job, then three months' salary is enough. If you are self-employed then at least six months expenses.

Start this fund today, so you will breathe easier and would be a safe place early. It is a reasonable time to calculate six-month expenses for urgent needs.

If you have no extra money to set aside, then you earn more and more. But if you have no time for them you cut out your expenses. So you save money easily.

[Read: Passive Income]

Conclusion.

                     Seriously you should take action to create an emergency fund. So create a budget and make a plan in mind and start saving today. You will be amazed, at how much money you sum up in a short time. Set a monthly goal budget and then jump to the next step. 

If you are saving for the goal to start a business or to buy a house, the emergency fund helps you to meet your goal. An emergency fund is a great way to protect your savings. Emergency helps you to long-term financial goals.

If you are working in a secure company then it is good to maintain an emergency fund. Is your job safe? If not then an emergency fund helps you to get more jobs quickly.

I look forward to your comments in the comment box.

Tags: Emergency Fund,Personal Finance.

What are Some Good Financial Habits?

(3 minutes read)

Good money habits lead to financial growth. Whatever your goals in life, good financial habits make you wealthy persons.

 You become a millionaire only if you adopt the good spending habits of rich people.

Better money habits guide you to manage your money in the right way. We are helping you to spend money in a good way and save some portion for tomorrow.   Some good financial habits areas:

  

1-Use cash for purchasing.

2-Good spending habits.

3-Check your finance regularly.

4-Track Expenses.

5-Live within means.

• Use Cash for purchase.

                                                                            These are simply good money habits. You can easily follow these habits in your life. You buy with cash instead of a credit card. In this way, you get out of debt. If you are ready to control your money and want to financial freedom, then it is a great place to buy with cash.

Some people purchase everything with credit cards which is bad spending habits. If you are cannot pay off your credit card in the last month, then you should stop using your credit card. Keep in mind, want to be stable in life, you should get rid of credit card debts, or minimize credit card usage.

• Good spending habits.

Good financial habits is essential for financial growth. Because if you spend more than income then you suffer financial trouble. Normally people follow their parent's spending habits. It is hard to change them. Do you know how to spend? where to spend.

First, you get knowledge where spending is necessary, in investment or save for future. Religion affect also spending habits. Before spending, you think about savings.

If your parents brought fruits, when going to relatives, then you can do also brought some fruits to your relative, without thinking, whether it is necessary or appropriate.

People spend money for their culture and for their society to fulfill society's demands. Some people spend income to achieve a high standard of living in society. But I asked you to spend a little in every field and save more.

• Check Finance Regularly.

                                        When it comes to adopting good money habits, It is necessary to review cash on a regular basis. You can also start personal capital that will help you to check your budget.

You may notice internet telephone bills, previous month and current month. Find opportunities to reduce these bills.

If you have surplus funds in your account, you should invest for the long term.

• Track expenses on a regular basis.

                                                      Tracking expenses is a good money habit, where your money is going. Being an honest person, tracking expenses will give you lessons, on how to minimize them.

There are dozens of money tracking, that you can use to track expenses. Check your account statements, credit card bills, and categories all expenses. Tracking expenses to ensure you, it is within your budget.

Some types of expenses, you track, Rent expenses, utilities, groceries, insurance expenses. Keep in mind, to tracking expenses will stay to you to budget.

• Live Within Means.

                                    These are good money habits you must adopt. You spend less than you earn. This is the good root of going financial habits. Before spending you should check your means.

Live within means right way spend money in the right place. Household expenses should not exceed your income. If you want to live within means, then you should know what are actually your means? 

Final thoughts.

                          Everyone has goals in life, to achieve them adopt new good money habits. You know savings is a big asset for you.

Keep some money set aside in a bank account. Saving money can help you how much money to save to meet financial goals.

I am not asking you to save $ 5000, but a small portion you easily afford from your salary. Success comes only with your good habits.No matter, you are in bad financial roots, but there is always room for improvement. Read a good book and write what you learn today.

If you do not adopt good money habits, then it is really hard to achieve control your money.

 Tags: Good habits, Personal Finance

 

                                                                                                        

How to Make a Budget?5 Simple Steps .

A good budget makes helps you to get out of financial trouble. A budget is a plan for income and expenses. People make a budget for their expenses occurring in the future and then check with their actual expenses. The budget is for a specified period of time normally for one year.

A smart budget planner is beneficial to you. Budget help us to achieve our goals either in buying a house, paying off our debts, save some money for future needs. Whichever path you choose, the budget will help you.

Some people make a budget habit so that they do their own small business. Like that you can write a family budget so that your spending does not increase with your income..Taking care of family needs, buying a house and other financial needs, purchasing foods, and paying bills, the budget will help you.

How to Make a Personal Budget?

                                                        A personal budget helps you to manage your money. In this article, we will try to help you with the best family budget for you. The goal of the family budget is to spend less and save more for your life goals.

5 simple steps to creating a family budget.

1. Check out your monthly income.
2. Cut out expenses.
3. Calculate your Net worth.
4. Focus on future goals.
5. Pay yourself first.

•   Check out Your monthly income.

                                                                                  When I build my first budget round about two years ago to buy a house. Then It was difficult for me to save a huge amount of money. I calculate my expenses and estimate how much money I need to save each month? So, I make a personal budget and save some portion of my income every month, then I easily sum up a huge amount.

First, before making a budget, You check your financial situation. You must know, how much amount is in your every account or if you have an investment in a bank or stock exchange. By using personal capital, your budget will automatically create.

• Cut out your expenses.

                                                         The best way to calculate grocery things buys bulk quantities of basic things. Keep your receipts, electricity bills, gas bills, and all other expenses which are occurring in the future.

Divide expenses into different categories, so you have to judge how to minimize expenses using a sticky budget? You can cut out expenses, by using different techniques.

• Calculate your Net Worth.

                                                If you know your income and expenses, can easily calculate net worth. You add all your expenses and subtract from income, then it is equal to your net worth.

For example : Income - expenses ( variable and fixed )- Tax = Net worth. 

When you are starting out, you can be negative, but trying to will be positive after a few months.

• Focus on a future goal.

                                          Think, about why you are budgeting, what are your goals in life? Either buying a house, paying off debts, or investing money. Or you have to retire early. First, clear your goals.

Some expert says, that you have three months to six months of expenses, then you should be financially strong.

So, if you save income by doing a good budget, then what do you do with your savings?

• Pay yourself first.

                                             It means you save some money for your future. You must create an emergency fund account. The general rule is 10% of your salary saved in every month if you are at age 20 years. If you are 30 years, you can adjust your savings by 15 - 20 percent.

There is no set figure out how much you should pay yourself? You can adjust it according to your needs. It is better to save small today than start large later. Keep in mind your savings will save your future, an emergency fund will help you in case of any breakdown of your car, or you lose your job, this can help you. This can be beneficial in the case of retirement.

[Read: How to Invest in Yourself]

Final Thoughts.

                                     If you have no budget, now create once. If you follow all the above steps to creating a budget. You will get financial freedom and wealth in the future.

Another thing is that whatever your income is, you live within means. Pay off debts first and live debts free life. Also, you stick to your budget and make a habit to do it. You check your budget on a weekly basis, and then monthly basis. So that you live a comfort of life.

Tags: Budgeting, Personal Finance.