Bear in mind that the company you keep or the class you socialize with can have a considerable bearing on your spending habits. If you find yourself irresistibly mingling with people who tend to be spendthrift and extravagant, then it should serve as a reality check. Look back in retrospection and evaluate your financial decisions from the past few months. You’ll have a clear idea about your profligate ways.
Networking within your career is probably a must already. So why not mingle with those who you look up to, including your mentors and role models? You can learn from their ways and have some of that positive work ethic rub off on you, too. Mend your ways and try spending time with those who share your values and interests.
It does not need to be stressed that staying in good shape is vital if you wish to continue earning a lifetime. The IRS stipulates that every US citizen must opt for health insurance, failing which he’ll or she’ll have to pay hundreds of dollars in penalty. It would help if you accorded top priority to buying coverage or health insurance as the policy will indemnify you against bankruptcy, unexpected illnesses, and mishaps.
Remember that purchasing a policy tends to be more expensive than opting for your employer’s health insurance. So if your company is offering you coverage, grab the opportunity. Nevertheless, before you register for a policy, ensure to thoroughly read the terms and conditions outlined in the policy document. At the same time, take your time to realize the policy’s term, the premium amount, and deductibles. You may also have to sign up for life insurance if you have a family of dependents.
All those who swear by an economical and prudent way of life are by and large cautious of overspending. There are many ways you can be profligate or spend to excess; buying a limousine or a mansion in Malibu, or opting for a holiday in the Caribbean are all ways. You can even demonstrate your extravagance in so many other ways, like going for exorbitant home décor, setting up a swimming pool on the terrace, and more.
Of course, you can afford to be extravagant once in a while. However, if your squandering ways develop into a habit that you find hard to control, you could be on the brink of bankruptcy. You can rein in your spendthrift ways by convincing yourself that you can lead a comfortable life by staying within your means.
You work hard day in and day out to earn, so you must make your own financial decisions. Therefore you must learn the ropes of financial management to decide how to make the best possible use of your earnings. Towards that end, you may have to consult a range of professionals engaged in the areas of real estate, stock market, insurance, banking, and accounting.
However, it would help if you always trusted your instincts when interacting and dealing with such professionals instead of charging them blindly; after all, these professionals will be more interested in improving their bottom-line rather than yours, so you have to be circumspect.
Always be on the lookout for freebies and promotional offers, and do not miss out on taking advantage of them. You can rest assured there will always be free offers to benefit the various sectors of trade and commerce.
The logic behind free offers is prosaic and straightforward; thriving businesses earn massive tax revenues for the administration. It is beneficial for the government to plow a proportion of the gains back into the companies.
You have to struggle tremendously regularly to enable your company to grow and develop and stay competitive. More often than not, the most effective way to boost the bottom line is by reining in your expenses rather than boosting up sales.
There are multiple simple and straightforward ways of saving money to bring down your business expenses:
Negotiate with your vendors and suppliers for better deals (like reducing the cost of cell phone use or slightly lessening the interest rate on the mortgage once in a year)
Outsource tasks for which you’re paying much more than industry norms
Get quotations from multiple vendors for settling on the best rates without compromising on the quality aspect
You’ll not be able to work at the same rate and earn an identical amount of money as you’re making now when you grow old. However, you’ll need to keep paying your energy and grocery bills and various other essential expenses for a lifetime. And this is where you’ll need to tap into your superannuation and savings bank accounts for meeting your expenses.
Therefore you’ll have to put a portion of your monthly earnings in these accounts instead of spending your entire current income on present-day expenses. Once you realize the importance of the lifetime income principle, you’ll never have to worry about your expenses postretirement.
Warren Buffet offers valuable financial advice that frugal people will find worthwhile for one of the most celebrated self-established billionaires and an investor with deep pockets. One of his financial tips is, “Keep things simple and don’t swing for the fences. When promised quick profits, respond with a quick, no.”
Shrewd and wise investors and financial planners have the wherewithal to figure out where one should be investing. In other words, these professionals understand there are many businesses out there that promote get-rich-quick schemes, which could put you in hot water financially. Always keep in mind that it is nigh-impossible for your investments (or anybody else’s for that matter) to earn an inordinately high rate of interest in the cutthroat world of commerce.
So when any individual or institution attempts to thrill you by guaranteeing an exceedingly high ROI, laugh it off.