It’s not easy building up a nice nest egg, investing your money and staying on top of bills especially in financial difficulty. Well, in this article you’ll discover how to do just that. We’ve got 7 essential steps to building Sunny Day Savings.
Build a nest egg
If you can build a nest egg of at least three to six months of income and keep it somewhere it earns good interest and can’t be touched, you’ll be well prepared when you are in financial trouble. Make saving towards your nest egg a part of your overall financial plan. No matter how little you can put away, with compound interest it will build up over time. Read our article on compound interest if you would like to know more.
Think Interest not just savings
Invest and save with a long term output. There are options to keep your money where it cannot be touched. Low risk methods of saving your money for good interest rates include saving bonds, certificate of deposit and ISA’s are all attractive ways to earn high interest on your money. Usually these types of savings plans require commitment for the long term where there can be penalties for withdrawing money early.
Don’t carry your credit cards around
Regular use of credit cards is sure to cause financial ruin especially when not used responsibly. If you must use a credit card, plan to pay off the balance at the end of the month to stay on top of them.
Imagine the millionaire entrepreneur who still lives in the same house he was before his success, arrives to work in the same old VW golf whilst wearing trainers with his trousers. Infact, Mark Zuckerberg CEO of Facebook, fits this description for the most part. On the road to financial success, you have to resist the temptation to buy things just because you want them. Make sure the need exists before each purchase.
Get out of the minimum payment mindset
The best way to handle repaying back debt is, apart from paying on time, of course if you don’t do this your credit rating will suffer and your lender can take you to court, but you must also pay more than the minimum.
Think of the relief you’ll feel when you come out of debt earlier, not to mention the debt will have cost you less in terms on interest charged.
Teach your children to save
Whenever your kids receive monetary gifts or pocket money from small jobs, teach them keep it in a piggy bank. Encouraging them to be financially responsible will produce not only a positive attitude to money later on in life but teach them they don’t always have to buy every toy they see. You’ll also find saving with your children gives you extra motivation to save too. I would move this paragraph further down and start with the person reading the article.
If you need a short term loan to cover an emergency expenditure but are unsure on how to manage your debts successfully you can contact us here and speak to one of trained advisors. At JL Money we are committed to lending responsibly and offer advice on our short term loans to fit your circumstances.