Planning for your financial future is important to set up financial guidelines for the rest of your life. For example, planning is lifelong; people in their 20s-30s need to consider planning their careers so they can obtain a job or career which suits their interests and education, and gives them a chance to save for a house or put away money to save for a an emergency fund. The people in their 40s-50s might consider to building up their retirement funds by saving weekly into their retirement plans, and start putting money away for the college education for their children.
The people in their 60s-70s are people planning for their retirements, and also considering ideas to hold on to their careers and retire on a part-time basis, others might want to start their own business in retirement. Financial planning success begins with your financial planning at an early age, and your must continue for the rest of your life.
Here are some financial planning steps you need to succeed in your financial life.
Start Saving on Your First Job to Your Last One
Making saving for your retirement, a new house, or for an emergency fund early in your career or job, and make a favorable habit lifelong. Start your retirement plan at work, and put 10% of your weekly pay into your account, if you earn KSH37, 500 a week, this means you will save KSH3,750 a week(KSH37,500 X 10%=KSH3,750) and when your do this for one year you earn KSH195,000 a year (KSH3,750 X 52wks=KSH195,000). You employer might match your contribution 100% so you would save KSH7,500 weekly, and earn KSH390,000 (KSH7,500x52=KSH390,000). A universal financial rule is saving at every job or career to build your assets and retirement security.
Invest in Your Career or New Career
Nothing is more important to your financially successful life than having a stable career that pays you well, to funds your financial life, and can help you buy a house, and set up your own financial investment portfolio. You will have 5-7 careers in your life, expect many changes in your career, and be willing to be a lifelong student, take seminars, workshops, and courses at work, but also take outside college or business, trade courses to keep yourself current, help change your career focus, or get trained for a new career. Set up a saving account, call it "My Education for Life Fund" keep funding it, and use it all your life. Watch debt it can hurt you.
Watch Credit Card Use, Avoid Excessive Debt
Financially successful people know how to handle their credit, and try to pay monthly credit card charges off each month, so the next month starts with a zero balance. By running higher and higher balances on multiple credit cards will make it harder and harder to keep up the required payments. Large balances on credit cards will take years to pay off, and this will hurt your financial life. Pay the balances off, by stop using the cards, and try to pay down the cards, so you can pay them off monthly. Excessive debt can be very hard to deal with, and can hurt your credit report and credit score, both are needed to get good interest rates on credit cards, loans, car loans, mortgages and store cards. If you get into debt, hire yourself a personal finance expert to help you get out of debt, and stay out of debt in the future. Start an emergency fund.
An Emergency Fund Can Help You
Put KSH50, 000 to KSH150, 000 into a saving account, and call it "My Emergency Fund" when you need money to get your car fixed so you can get an inspection sticker, to do electrical, plumbing, roofing, repairs at your home, and if you don't finish the work, it will get worse, and can cost even more. It could be used for medical or dental work that is needed, for you or a member of your family but, not covered by your insurance plan. Use the money in your emergency fund, so you will avoid using your credit cards, or opening up another small loan, and start saving for college when your child is still a toddler.
Putting Away Money for College Begins Early
College training is going up each year, to get a bachelor's degree, and an advance degree will cost KSH800, 000 or more. Start savings early, and when the child is old enough, direct him/her to a good part-time job during the school year, and a full time job, in the summer time. Apply for all the scholarships and other aid where possible.
Summary: Your successful financial life will take a great deal of planning, but the most important thing you can do to succeed, is starting early in your saving, and watch excessive debt, and take only the credit cards you need, finance your retirement fund from your first job to your last job before retirement, ask for help from a personal finance expert when you need it, set up an emergency fund and use it, have regular family meetings to discuss financial issues, such as a budget, and how to cut it to save money, and find ways to save money, by spending less. You have all you need to succeed. Go for it!
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