Whenever you think of improving your finances, probably you think of various things that can take several years to accomplish and follow the right path. No matter it is saving for your retirement, purchasing your home, car, and making good money. Then, when the long timeline of all your goals becomes quite apparent, you will get frustrated. With planning and discipline, you will be able to improve your finances and start making some tangible investments in the family’s future. In this post, let’s see few ways suggested by millionaire Dan Lok for improving the financial situation of an individual.
1. Start with Budgeting
If you’re hard struggling hard to handle finances, you likely have to create a proper budget plan—it must include how you are planning to spend your money every month, and based on how much you earn & spend. Budget will be your top tool to change the financial future. To begin, you need to write down the income and other expenses and subtract expenses from an income to decide your spending. At the start of every month, it is important to set up your budget and allocate how the discretionary funds must be spent. You can track spending over course of a month, and determine if you stuck to the proper budget.
2. Open Savings Account & Fund with Deposit
Suppose you have got your personal savings account, you are almost there. And if not, you can find out one with a good interest rate & set up your own account. After that have the employer deposit over $25 and more each pay period. Suppose you cannot get the direct deposit, you can set up the automatic transfer from your savings. Money may grow without a lot of effort on your side and, there are chances you will not miss out on what you have not seen.
3. Reduce Eating Out
If you are looking for a simple way of taking complete control of variable expenses each month, then reduce eating out. Occasional splurge at the post restaurant is perfectly fine, but savings will add up when you cook at home and bring bagged lunches instead of eating in a restaurant daily.
4. Sometimes Reward yourself
It is not completely strange to equate this struggle to lower your debts & improve your finances. Like eating right & getting lots of exercises, attaining meaningful debt reduction will need you to make huge changes to the lifestyle & decision-making processes. You may take out a page of your dieting book just by setting some key goals and milestones by rewarding yourself to reach them properly.
When you are paying off the high-interest card, you can celebrate with the tasteful and inexpensive restaurant meal and night out at movies with the family. Whenever you reach bigger milestones such as closing out the personal credit line and repaying your loan, take one sick day & bring your children to major league ballpark. Even though you must not go overboard till you have settled your debts, occasional morale-booster will not hurt you.
5. Get well Organized
Getting organized is one important step for a better financial life. It is very important to set bills first to autopay. Missing the payment will be highly detrimental to the credit & financial future, thus ensure your bills are timely paid. You need to be aware of how much money that you have in your accounts, which includes savings. Emergencies are an important part of your life, and often they happen if you least expect it. Thus, it is very important you get prepared. Most of the experts suggest saving for six months to live expenses to make sure the financial stability without any dependency on the credit cards.
6. Lower down your Monthly Bills
You can call your mobile phone and cable providers to know if you can find any good deal from them. New deals and offers come up all time, thus your current plan might not be very cost-effective. If you are aware of the better offer and deal from the competitor, you must mention it. Also, your provider might match this and in case not, you can switch to another provider.
7. No more Credits
Suppose you’re struggling hard to make your ends meet every month, you will be relying a lot on credit cards. Suppose you keep on using your cards as a stop-gap measure for making your ends meet, you will go into debt quickly. Limit the use or stop it completely.