Tuesday, July 11, 2017

# finance # financial habits

Smart Financial Habits to Adopt Now for a Wealthy Future




Most people don’t tend to think about the future. They live for the here and now. After all, it is difficult to dedicate yourself to something that seems so far away. However, by having this approach, we are missing out on a whole host of money-saving opportunities, as we are reluctant to invest now, instead of thinking about the benefits our investments will bring in the future. Striking the balance is difficult, but it is all about making smart changes and developing effective financial habits. With that in mind, read on to discover some financial habits you should embrace now for future security.
Know how to protect your money and your identity

Nothing is more frustrating and upsetting than seeing your hard-earned cash slip away because a hacker has stolen your identity. It may seem far-fetched, however, this is very much a reality in the current day and age. Cyber criminals are getting more and more sophisticated, and ID fraud is rife at present. This is why it is so important to educate yourself on the different ways to protect your identity and your finances. This will save you an awful lot of trouble and money in the long run. Here are some tips to help you get started:

  • Invest in an effective security program for your computer. Ensure that it is robust and has good reviews online.
  • Always use different passwords for all of your accounts.
  • Change your passwords every few months.
  • Use two-factor authentication whenever possible. This means that you will need to pass two security checks in order to gain access to your account. As well as inputting a password, you will often be sent a code to your mobile phone or email, and you will need to input this too for access. There are other options available too, such as biometrics and answering security questions.
  • Choose your passwords carefully. Don’t have anything that resembles an actual word. Use a mixture of uppercase letters, lowercase letters, numbers, and special characters. Your password should never be easy to guess.
  • Answer your security questions incorrectly. Your security question may be something like your place of birth or your mother’s maiden name – all things that could be relatively easy to find out. This is why it is a good idea to answer the question incorrectly instead. That way, no one will be able to guess it.
  • Never use free Wi-Fi to sign into a website that has your sensitive or financial information.
Make home investments today that will save you a lot of money in the future

As mentioned in the introduction, we are all focused on the here and now. When we assess our finances, we look at what is going to come in and go out each month. We don’t think about the savings we could make one or two years down the line. But, you should! There are many changes that you can make today that will save you huge sums of money in the future. For example, you could install a smart meter. This enables you to see how much electricity you are using, and it is broken down into currency, so you know exactly what you have spent. This makes it easy to stay in budget every month and even reduce your utility expenses. Residential tints also provide you with a great way to save money, which is why companies like http://cooltone.com.au/ are in high demand at the moment. These tints aren’t just for decorative purposes; they reduce heat, enabling you to save money on your energy bills. You can find more tips on saving money around the home here: http://www.istintotz.com/2017/06/simple-but-effective-ways-to-save-money.html. While such suggestions may require an initial outlay, if you calculate the amount of money you will have saved five and ten years down the line, you will see that it is well worth it. You will make a return on your investment, and then some. Get into the habit of thinking about your future and planting the seeds for financial success later in life.
Understand how to use credit cards

One of the biggest mistakes people make is getting a credit card as soon as they are eligible for one, and using it without any thought. If you use a credit card properly, it can be a great tool, which boosts your credit rating, and gives you improved access to money. This will ensure you get better interest rates on mortgages, car loans, and such like. However, if you use your credit cards incorrectly, you could find yourself with an awful rating, which makes it hard for you to borrow any money at all. So, what should you do? Start with a small starter credit card account. You should then use it for small purchases, and make sure you pay the full balance off on time every month. By doing this, you will establish some on-time payment history. This is the single most important factor when it comes to your credit rating. Once you have done this, you will be eligible for better credit cards with improved interest rates. But, make sure you do not fall into the trap of merely paying off the minimum balance every month.
Reverse your thinking

Most people receive their wages, take their taxes out (if this isn’t already done for them), pay the bills, and then calculate what is remaining. This is the money they have available for themselves. Nevertheless, to build wealth, you need to have a change in mindset. You should not simply spend the rest of your pay. You need to take another cut from it, and this should be put towards your savings. Your financial goals need to come first – they are just as important as your bills. Only once your savings money has been removed should you consider spending what is remaining. By doing this, you will have a strict and stringent approach that will put you in a good place for the future.

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