10 Best Financial Advice You Must Know

                                                                                    

Everyone knows that managing money is not always a fun activity. Especially when you get an invitation from your friends to spend time on weekends at a fancy cafe with expensive foods and beverages.

People love spending money for pleasure. Some of them manage their money with poor financial choices. Whereas, there is a way to manage money wisely. Just listen to the best financial advice and apply it to your money management system.

Don`t worry! it doesn`t mean that you need to stop your hobby or everything that you love so you can`t 

spend your money. Enjoy life`s with good money management. so you will have a better quality of life. 

Here is some important financial advice you need to follow 

In this post, we’ll provide our best financial advice to help you manage your finances better.

1. Use Credit Card Wisely 

Credit cards are very useful, but sometimes it becomes a dangerous tool. Using credit cards frequently is more likely that you'll cut your thumbs off. 

It is very important to wisely use a credit card so you will not feel regret in the future. The key is to keep the credit utilization ratio under 30 percent. Purchase things that are very urgently needed with a credit card. Unless it's better to pay cash with your debit balance.

Remember to keep an eye on your credit score. Therefore you will get a good score and get ease when applying for a loan.

2. Make a Careful Plan When Buying a House

If now you are considering buying a house with a mortgage, consider it carefully. Make a good plan and consideration. Don't be too aggressive because it might lead to a new mess in your financial situation.

Carefully measure your readiness to buy a house. Even if you want to buy a house with a mortgage or loan, you need to be wary of making a down payment below 20 percent.

Remember that stretching to buy a house more than you can afford will lead you to pain in the future. 

3. Ask for Help with Make Budgeting

The next best financial advice you need to listen, that you need to take advantage of budgeting resources. For many people, it is very overwhelming to track finances without any help. Don`t do budgeting alone, you need the help of a professional.

Ask for help from any resources to track income and expenses. Then, you will make better financial moves.

4. Never Forget The Taxes

The next important financial advice that you need to keep in mind is that you need to pay attention to taxes. Of course, nobody likes paying taxes, but if you fail to pay the taxes it will lead to serious financial trouble in the future.

Depending on your occupation, taxes come once a year or quarterly. Make a financial calendar that will remind you when to pay the taxes.

You might consider a retirement plan to save money on taxes. Never do illegal schemes. It's better to choose the legal way to save money.

Learn something about paying taxes. You can hire someone to help you doing taxes management.

                                                                                     

5. Consider the 50/30/20 Budgeting Method 

You will need a little guidance to spend your money wisely. Make a strong and manageable budget. Consider the 50/30/20 method.

This budgeting rule is very essential. 50 percent of the income goes toward essentials ad basic needs, including food, utilities, and transportation.

Meanwhile, 30 percent goes toward the wants for pleasure including entertainment, traveling, gadget, and more. How about the rest? 20 percent of your income is allocated for debt repayments and saving. It also includes loans and credit. 

This method is an essential skill everyone must have to correctly manage their money. You will create a solid plan with this rule. Therefore, you can meet your financial goal as soon as possible. It helps to find a way to identify things you need to cut.

6. Save Money Early

It`s many people`s common mistake to spend money for saving at the end of the month. No shame to use tricks to get yourself to save some of your money.

Remember to save money early at the beginning of the month. Use multiple saving accounts and set automated transfers. Consider also raising opportunity and saving more.

Begin saving money as early as you can. It will be a good habit so you can set financial success for the future. 

7. Consider Cutting Expenses 

It is also essential to look at your lifestyle and habit. Identify the area where you can cut expenses and save more money. It doesn`t mean you need to cut off some basic needs. Just pay attention to things you do not need to cut. 

You also can focus on saving for retirement. Therefore you will not be in financial trouble when you have retired. The earlier you begin saving and cutting unnecessary expenses, the better is.

8. Consider Smart Investments 

Saving money is not enough to have success financially in the future. Smart investment should be conducted so you can boost your saving and even make extra income.

So what are smart investments? Index funds or target-date funds are not worth trying. Consider investing your money in funds with low risk, so you have less risk of losing a large amount of money.

Keep in mind to avoid investing money in anything which promises big returns with little risk or no risk at all. Usually, this kind of business or investment is a scam. Make a good analysis to invest in funds that are legal and promise make sense returns.

Investing money in your retirement savings is also a good choice. Consider investing money in more than one instrument. Don't put eggs in the same nest. I think it's very good advice everyone should follow. 

If you want to have better money management, just follow the tips mentioned previously. It is a bit hard in the beginning, but you will get used to it.

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