The year 2014 is about to end. Find out the best ways to improve your finances this 2015. Here are the smart and best ways or the smart move you can do to for your finances next year. These list are just my own opinion, if you have any ideas in improving your financial situation for 2015, 2016, 2017 and beyond, then add it in the comment box below.
There are many articles you can read on how to improve your current financial situation. I suggest focus on this short and simple guide, a practical guide to see improvement on your finances, might it be personal, business or family finances. In this page you will learn how to grow your money,and learn the basic personal finance. Stay with me in this short guide, promise it is worth reading. Find time to browse all my personal topics and you will amaze, because, saving and investing for your future is very easy. Believe me on this, stock market investing is so simple!
10 Best Ways to Improve Your Finances
In personal finances, money management has a big role if you want to improve your financial situation.Learn how to budget, spending money wisely, save money and invest. Good news, money management even though it was not taught in school, it is easy to learn. You can do it yourself.
1. Analyze your current financial situation.
The best first move to do on 2015, is to analyze your current financial situation. Are you in money shortage or you have a lot of money but still in “short”. How’s my finances, ask yourself. What are the common things you should ask? How much money I need to live comfortably, why my money is not enough to live the life I want. There are lot of questions to ask, just take your time to think.
2. Know where your money is going.
When analyzing your money, include the most important thing to ask yourself, how did you spent your money this present year (2014). are they only wasted or 70% of your income spend on the things you really need and the 30% spend on your recreations.
3. Handle your finances with care.
Now, as you find answers to your questions. Start managing your finances. Learn how to manage your money by the use of a simple “envelopes”, “jars” wherein you separate your funds to their specific uses (example; funds for utitlity bills, education, gas, savings, investment funds, insurance premiums payment, etc).
4. Keep it under the ground.
In managing your finances, you will really how to save. But in order for you to improve your financial situations, you need to take a bit of risks. Invest your money in mutual funds or stocks.
5. Increase, Increase, Increase
If you are an employee, try to ask for a raise, your employer might grant you a salary increase especially if you are a hardworking employee. It’s time to ask for a raise, 2015 might be the best year for you because you work for so long in your employer. If you are a business owner, think “sales”. A huge number of sales. try to double your sales and at the same time improve your products and services.
6. Budgeting that Makes Sense
Even if you can earn a lot of money, you will never see any improvement unless you know what is a money management is all about. Try to budget your money, do not forget to set aside for your savings and investments. When budgeting your money, it is important to set aside a specific percentage of your income (example 20%) whenever you receive your net income. That 20% will be first deposit in the bank or invest in your mutual fund account or buy stock shares through your stock broker.
7. Oh My Savings?
This is a big question. When saving your money it doesn’t mean you only park your money in the bank. Saving money regularly to help you to have a self-discipline that can use when investing. Your finances will never improve by just saving money, invest it. Would you chose your money to earn 1% per year or 10% per year? Of course 10% per year – investment vehicle (stocks and mutual funds) can give you that earning rate.
Buy Assets: Improve Your Finances
The tips given above are just the basic, easy to do. Next best thing to do is to make your own financial plan. When making a financial plan, make sure you include investments not just savings.
8. My Financial Goal
Have time to draw your financial road map. When do you want to become a multi-millionaire? When do you want to retire? It is also important to know how much money to invest to retire rich and comfortable? Believe me on this, if you will just save $50 every month in stocks that earns 10% per year within 30 years, after 30 years you will have a $98,000. Note: 10% is not guaranteed, but most of the time stocks can give you a return more than 10% per year.
9. Buy more assets.
Assets are those things that increase its value. Example, if you buy 2 mobile phone, 3 cars, 5 mansions, those are just liabilities according to Robert T. Kiyosaki. But if your 2 mobile phones, 3 cars, 5 mansions can give you passive income, then, those things are assets. To make this explanation simple, buy stock shares, mutual fund shares. Those are paper assets.
Tips & Warnings (2015 Updates)
Before making a big move for 2015. Especially if you want to invest your money. Make sure you have paid all your debts (if not all at least lessen them), build an emergency funds, buy insurance (term life and health insurance). Investigate and be vigilant in investing your money. There are tips and investing education at Securities and Exchange Commission official website at www.SEC.gov. Have time to read and study SEC investing “Education” page.
10. Seek professional help.
Do not forget to consult with a certified financial planner. Ask him how to make your money grow. A certified financial planner will only answer you the same thing – investing.
How’s this guide? Was this helpful or useful? What do you think? As you have noticed, improving your financial situation is very easy, you only have to bear in mind the word “money management”. Learn financial literacy, there are seminars conducted by many certified financial planners in your local area. Attend seminars, educate yourself about personal finance and investing. Read books, magazine personal finance articles online like InvestmentTotal.com, thank you for reading. May you have a prosperous new year!
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