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Article by Sherin Dev; Follow me on Twitter
As you aware, new-years are always the time for people to set new resolutions. Generally at the end of year, most of such pre-set resolutions face failures. Why such failure happening to the resolutions? Normally, due to the impracticality of resolutions or not giving enough attention after set the same. Success of resolutions depends on how much it can influence one and how important it is to the daily life. When turn to finance for life, of course, it has tremendous influence to our daily life. In that context, here are five must required money practices by every person to make the life successful and peaceful. If you still have not set a proper New Year resolution for this 2010, have a look on below to select and set any or all from it as your resolutions.
1. Create Fail proof Monthly Budget Planner
What it really means? Budgeting used to understand your cash inflows and outflows. It is a best practice to identify the source of money and where it is going and how. Through budgeting, one would get real controls on his money and helps to live inside the capacity. It also helps to identify unnecessary spending.
How to move for this? Creation of budgeting required dedication and discipline. Budgeting generally doesn’t have a prescribed format but, the person who prepares his or family budget should prepare his own methods to identify the income and expenses. Little search on internet present you with lots of excel forms to compile and create your own budget planner in a better and successful way.
2. Emergency Fund Creation
What it really means? Emergency fund is a corpus that would deposited in an easily accessible place like a savings account, to use at the time of emergencies to the life of a person or any one in his family. Such situations generally give less time to collect possible money to meet the emergency. For example, an accident that causes you or a family member an immediate admission to the hospital for an unpredictable amount of days or an unexpected job lose.
How to move for this? Whenever creating an emergency fund, follow the best, golden rule of keeping an amount equal to your six months total salary. Emergency amount can be accumulated little by little by adding any surplus money to a separate account in each month or week. You can contribute bonuses, any money idly lying with you etc to the emergency fund account build a good emergency fund.
3. Plan and Contribute to Your Pension
What it really means? To build sufficient corpus that meet all your money requirements at the time of retirement life.
How to move for this? 2 best advices to achieve this goal is, start saving early and investing early. Investing is the best to meet all your future money requirements and if it starts early, ensures all your goals will be met. Consulting a good financial planner would be a better option once if you don’t have any idea about where to start.
4. Create Children’s Finance and Investment Portfolio
What it really means? Children are everything for parents. All their efforts are for the better future of their kids. A dedicated investment portfolio for child intends to secure the future of your kids and meet the money requirements for goals like higher education and/or marriage or anything else.
How to move for this? Start investing for kids at the very next possible after they born. A good investing strategy to invest a particular amount in each month to the right instruments would do better to achieve all the goals for long run. Whenever investing for kids, stocks are the best option to generate enormous wealth for long run. Consult a good investment planner to get help on this.
5. Master in Saving and Protection
What it really means? Saving money means controlling unnecessary expenses or identifying and rectifying careless activities by us that cost huge money for long run.
How to move for this? Money saving tips in this blog is a good answer on how to move with this. Click Money Hacker money saving tips to get number of well prepared highly practical information on saving money.
Picture by: NazarethCollege