INSURANCE . RETIREMENT . INVESTMENTS
2020 is here, a new year and a new decade has started. There is no better time for you to put steps in place to safeguard your financial future.
Today we will like to talk about the different ways of safeguarding your financial future and achieving your financial resolutions.
1. Save a percentage of your salary every month – Devote a fixed percentage of your salary towards savings every month. This amount should be comfortable for you and should be considered after all expenses have been covered. If you are a business owner, devote 10% of your monthly earnings towards savings.
An easy way to do this is to set up standing orders to automatically deduct and send your earnings to your savings account each month.
2. Set a realistic savings goal – Have a set goal figure to achieve at the end of the year. Whether this goal is $1,000.00 or $10,000.00, having a set goal figure to achieve helps keep you on track with your savings and gives you an exact idea of how much you have saved and how far you have left to go.
3. Have a budget – Your monthly budget should contain the costs of housing, food, utilities and other expenses. Once covered, dedicate a portion of the remainder towards savings, and keep a portion for use as disposable income.
4. Plan for retirement – It is never too early to start planning for retirement. Think of this as planting a seed today and reaping the fruits in in the years to come. Annuity plans are a form of retirement planning and can be used instead of having a savings account.
5. Establish an emergency fund – An emergency fund should be set up and be separate from your savings. This fund can be used to cover unforeseen circumstances such as health problems, switching jobs or moving. A good amount for an emergency fund is 6 months’ worth of your expenses.
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