The old saying goes, “money makes the world go around” and while some of us might like to trick ourselves into lessening the importance of money when you find yourself short, cash can be a real problem.
Money issues are among one of the major reasons for couples breaking up and it is without a doubt that financial difficulties can cause result in unwanted stress and pressure, sometimes even leading to illness.
Nonetheless, improving personal finances and wealth is a struggle for many so here are some top tips for gaining financial stability – particularly with a view to building that all-important nest egg behind you.
Study how you are spending:
With the rise of credit cards, banking, and money apps, it is now easier than ever to check your spending and see exactly where your money is going.
Most modern credit and debit cards keep a tally of where you have spent your cash, giving a valuable insight into potential problem areas. Many also break down this information in mobile apps to offer an even better insight into where your money is going.
As we move increasingly to a cashless society, monitoring your spending will undoubtedly become easier with more and more banks and financial institutions offering traceable spending apps.
Set yourself financial milestones:
As with most things in life, planning can considerably increase your chances of success so try to set yourself realistic financial milestones – and stick to them.
Fiscal responsibility is not just limited to watching your spending – you should also aim to start saving. Again, with the rise of internet banking, apps, and online trading, it is now easier than ever to keep a track of your investments (and outgoings), making it much easier to set yourself goals.
Many modern credit cards and payment apps now offer the opportunity to save each time you spend (for example by rounding up the payments you make and putting aside the extra into a savings account).
Put aside a percentage of your wages:
Most experts suggest you should look at putting around 15% of your typical wage into a savings account or similar investment.
Again, modern technologies have substantially increased the options in this area with expert trading companies offering forex trading signals to allow even the smallest of small-time investors to invest in cryptocurrencies and foreign currencies as well as stocks and shares.
Benefitting from this constantly updated, learned, privileged knowledge substantially reduces the risk of investment. While no market trading is complete without the danger of losses, using these platforms will significantly reduce the chances of making a bad investment.
In particular, cryptocurrencies have, in recent years, become the platform of choice for many investors with some notably huge gains.
For example, Bitcoin traded at just $3200 in March last year but is now nearing $50,000. As with all investments, it is important to realize values can rise as well as drop, but Bitcoin’s performance through the last year has been nothing short of remarkable.
Try to set a realistic monthly budget:
Setting budgets is one of the most successful routes to financial prudence and security. Unfortunately, it is all too easy to lose track of our finances so take a look at how you are currently spending and make adjustments where you can. Again, using online banking or mobile apps can help you track this and find areas where you can reduce your outgoings.