Sunday, 29 December 2013

9 Ways to build up a concrete financial position in 2014

With new year 2014 approaching quickly, we should start taking new resolutions to improve ourselves. That may could range from learning piano to perform better in your class or be the best performer at your working place. However, its a known fact that resolutions give results only when you are stern in your resolutions and stick to it. One important aspect that helps us to live better is obviously our financial planning and we need to break our old habits of managing finances this year for a more better and concrete financial base.

There are many ways that would be favorable this year for you to practice to boost your financial obligations, but I decided to share a few tips that are non-obvious yet beneficial for those who are stern to make a change in their financial condition.

Feel confident about managing money: Its necessary to believe in yourself before you start doing something. If there are matters in the past related to managing money that makes you feel guilty then you better shred off such feelings. What you need is to just look back and check the faults previously done and do not repeat the same. You need to understand your financial obligation by understanding your financial inputs and outputs. Its not only about what you earn its also about your expenses and you need to keep track of both to have the control.

Design your own financial plan: If you are not yet sure about your financial goals its high time you set one. Having a goal will help you work out in a proper path. Before fixing your goals you need to grab a pen and paper and know your present financial position so that you can take steps for future. Furthermore, I would suggest you to think big no matter if they seem impossible as its never bad to think big and chase it.

Time to get out of pitfalls: To chase your dreams you need to have a good financial backup and position. In case you are overloaded with credit card debt or you have a bankruptcy filed, you need to create a positive financial planning to get rid of them. Once you are out of such pitfalls you can chase your dreams properly with no unnecessary headaches. And be sure to keep your goals in front of your eyes, maybe a note on the wall or a note on your desk. Its a good way to stay focused on your resolution to achieve your goals.

Boost your savings rate: Two most popular and practiced ways of increasing savings rate are diverting your paycheck to pre-tax retirement accounts or by managing a post tax savings account. These tactics of automatic savings are the easiest ways to create a financial backup. The more you save the more secured you will be in future. This financial planning is important for every house hold in modern times.

Keep checking on your insurance policies: Its very important to know your policies. Insurance policies keep changing depending on deductible amount, or rental coverage or other important points and if you are not acquainted with your policies you might be surprised when you would approach for coverage after any accidents. Proper knowledge will help you deal smartly in times of a mishap.

Put on your gears for the rising interest rates: Interest rates can rise anytime and it is what financial advisors also believe. Although it has been low after the Great Recession, yet we never know when it rises again. It would be great if you could pay off your debts, opt for refinancing if you don't have one. First time homeowners could avail the benefit of rates still low.

Find out ways to reduce your taxes: There are several ways for every individual to reduce their tax bill. If you are unaware about the ways then you could give it a start by investments in municipal bonds etc. Try to avail any chances that you get to save money wherever you can. Ultimately, it would be beneficial for you and hence keep yourself updated about any new information regarding tax or other financial features that are mingled with our day to day life.

Use the option of a Kick starter: It is not only celebrities who use Kick starter to finance their projects. There are instances where an entrepreneur who is not even recognized by many have launched their products on the sites and have been able to reach their targets. They advice sharing their projects with friends and associates to get a strong link up from social media platforms or a create a concrete video of your projects and promote it.

Share your ideas with your partner: If there's no happiness in life, there's no use of having lots of money. And speaking about happiness, finances comes first in line. It can cause unnecessary differences among you and your partner and trust me I have seen couples falling apart for weak financial position. Always be honest with your partner regarding your finances and discuss how you both can work out a better financial planning. Give him/her the scope to present their views and listen carefully giving importance to their views and sort out any differences in ideas you confront. Finally, you could set your journey together to achieve the desired financial goals.

Follow the above discussed tips and strengthen your conceptions about building a strong financial background. If you haven't yet started planning you can start now as it is better late than never. Only few days are left for new year so start designing your own financial plan today to prove your financial obligation and build a better future for tomorrow.

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