Get your finances in order in 2014

Financial management can be challenging to follow through
Financial management can be challenging to follow through (file picture)

The economic situation around the world has been tough for the past decade and the previous year was certainly no different.

As with every start of every New Year, people resolve to change their lives for the better in various aspects – social, spiritual, financial, and personal.

They are all related so any changes in one aspect will have an effect on the others. Financial management, but it seems like starting it is proving just as challenging as following it through.

Financial management can be challenging to follow through
Financial management can be challenging to follow through (file picture)

There are so many ways to get your money matters in order, but the key is to have the determination and focus to realize them all.

Getting insurance is a wise move nowadays because of the unpredictable nature of life.

With the volatile economic climate and rising crime rate in many cities around the world, we must do everything we can to mitigate the implications of untimely disability, illness, or demise.

Not many people are equipped with enough knowledge of life insurance, so it is important to inform yourself first before making any decisions. Compare the Market provides this very service – giving you all the information you need on various life insurance options.

With this information, you can compare them against each other based on various factors.

Having a strict budget can do wonders to your financial situation this year. The concept is familiar to many people but it is also underrated and seldom followed religiously. Take time to examine your overall expenses – home, personal, work-related, and miscellaneous – to see where most of the money is going.

Online budget calculators are a great tool for assisting with this. Seeing actual figures helps greatly in identifying the right corners to cut. It also gives you an idea of your long-term budgeting plans. Technological advancements exist at our disposal to help us organize our finances and keep the numbers neat and updated.

Many types of financial documents still come in paper form, so you must also adopt a simple filing system. Receipts, billing statements, and invoices are important for filing income tax returns, but anything older than six months must be shredded and disposed of.

Having an organized household filing system prevents you from missing due payments, which can cause interest to accrue.

Cutting down the number of financial accounts can eliminate stress, confusion, and waste of time.

When payment processes are less complex, you tend to accomplish everything punctually. Having one or two bank accounts for savings, payments, and credit is enough to streamline your financial situation. Finding an effective financial tracking software application will help you monitor the activities in all of your financial accounts.

Set a weekly schedule to review your financial progress. You may do this on a bi-weekly or monthly basis, but the more frequently you track your finances, the sooner you will be able to pinpoint any potential mistakes or overlooked issues.

All you need is 15 to 30 minutes of your day to sit down and jot down due payments, list down receipt for budget computations, and discuss future financial changes.


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