Running into money woes, no matter how financially stable you are, is normal. We’ve all been there. From wondering where your money goes from paycheck to paycheck (despite making more than enough!) to missing due dates because you just can’t seem to keep up with the different billing cycles each month.
Truth is, being good with money is more than just making ends meet. Getting your finances in order is crucial to maintaining a good standard of living, hitting your life goals, and setting yourself up for a comfortable future.
It seems like a tall order, but the truth is, there are simple yet effective ways you can get it done. All it takes is a little time, some planning, minor tweaks to your daily spending, and commitment to the goals you’ve set for yourself!
1. Review your spending
Take the time to look at your spending habits and see where you can make adjustments. It’s all about creating a balance in your daily expenses. The key is to be realistic and not scrimp on the things that matter, see where you can save up (try not to use the AC daily, prepare your meals at home, etc.), allow yourself a treat (because you deserve it!), but commit to a budget based on your priorities.
2. Evaluate your goals
Saving up for your kid’s college fund, a house, a condo, a car, or a trip abroad? Look at all your short-term financial goals and long-term life plans and take a step back. What are your top priorities? Are your goals still aligned with your current needs? Asking these questions can help you evaluate your budget, savings, and investments so you can plan and prioritize accordingly!
3. Start an emergency fund
An emergency fund is different from your. This is the pot of money you should only allow yourself to dip into during worst-case scenarios like or natural disasters. Ideally, it should amount to three to six months’ worth of your living expenses, or a year’s worth if you are your family’s sole income-earner.
4. Automate your bills payment
Do you often find yourself missing the deadline for your bills? Understandable, since there are so many of them that it’s hard to keep track. But that’s what automatic bills payments are for. Check with your utility provider if they offer it and set one up so you can avoid racking up late payment dues. You may also enroll your Manulife policy in, so you don’t need to worry about missing your due date and keep your policy active!
5. Review your insurance policies
Make sure all your bases are covered with your current insurance plans. Check to see if you’re right on track with the different policies and funds you’re invested in. Having an insurance plan for your long-term financial goals is already a great first step towards freeing yourself from money woes. The next and most crucial step, however, is staying committed. But once you’ve developed a mindset of commitment, everything else will follow. You can achieve all your life goals in this lifetime, without having to sacrifice or let go of your plans for your retirement and future
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