The year is winding up and the start of a new year is right around the corner. In general, this year has issued a financial beating to many of us an the holiday season isn’t exactly helping. Regardless of whether we see a glimmer of home in the horizon, there remains one fact: Absolute financial control and planning is needed for 2011.
Here are a few tips to help you along the way:
Pay off credit card or high-interest debt: As sad it is, the fact remains that debt accumulates a higher interest than savings. While it is a good thing to save, the gains gotten from that will be totally wiped out by interest from ny debt you have, especially high interest debt. it will be worth your while to pay off the debt first, then focus on accumulating wealth (saving money).
Emergency Funds: In these times of financial unrest, it might be a bit difficult to do – but try as much as you can to make sure you have emergency funds. As far as finance is concerned, there is always something worse hat could happen. In other words, as tough as it is now, it could even be worse. So, set aside emergency funds – if you can. ome experts recommend that you set aside 6 months worth of expenses in a safe place — most likely a savings account.
Ignore ‘Guaranteed Return’ Promises: If nothing else, the financial meltdown should have taught us all not to pay attention to lofty promises and to ignore the words ‘guaranteed’ when it comes to an investment. Yet, a lot of us are still falling for the same trap. It might be understandable, because we all want to find way to make money. However, the risk is not worth it. If you are about to invest in something and the profit or return is guaranteed, take your money and head the other way. It might be safer in your mattress!
There are many, many ways to trim financial fat and hold onto as much money as you can. Please, feel free to ask me any questions you have. If you would like to learn more, consider taking the Personal Finance course at Courses At Home.