Sunday, September 26, 2010

5 tips on how to stay healthy financially

1) Begin a “rainy day” savings account early
The minute you start working, get a good insurance personnel to work out your insurance policy for you, that covers critical illnesses, H&S (hospital & surgical), PA (personal accident) & long term cash saving. This will force start you on saving monthly & you pay the least amount for starting early.

At such young age, it’s difficult to manually save, as there are plenty of temptations out there that will dry up your account by mid month. Review and increase the saving amount as your salary increases, and you will have your retirement covered. It’s never too early or too late to start, if you haven’t already started one yet.

2) Pay all bills & your financial commitment at the beginning of the month as soon as you get your salary
Never owe credit card companies money. You saw something that you must have while shopping, what should you do? Do a quick math in your mind. If you know that you do not have the money to settle this item immediately when the bill comes, don’t buy, unless if it’s on interest free installment.

3) Don’t buy if it’s not on sale
If the item that your heart so desire is not on sale, at least 30% lesser from its original price, drop it. It’s not worth buying. With sale/discount, at least you are buying something and saved some monies. With the current whole year ongoing sale, 10% discount is nothing. It’s probably just a gimmick.

4) Be in control of your finances
Keep track of your daily spending. This way, you will see clearly where all your money/spending goes to, which item is unnecessary and which can be cut off/reduce.

5) Learn about investing
Make it a point to read up a bit. The best thing would be to invest your extra monies in a diversified plan, with some in the fast cash investment and some in the long term investment.

Alternatively, each time you get extra cash, allocate a 10-20% of it into your savings. Do this automatically each time and you would have started a healthy saving habit.

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