best Financial Decisions you need.
Image/ Wrong Decisions

While we are young we think only how to earn money and how to spend money. Financial decision making, financial planning is not a part of your culture or society. This is the reason that many well-off people that are financially good today turn out to be lacking sufficient money in coming years.

Let’s change this trend, let us take our future into our own hands and start making smart financial decisions so that we have plenty of money for when we need it the most. Start saving today so that you don’t regret in future.
Take a look at some financial decisions that can help you increase your chances of a secure financial future.

1.     Save more for retirement

an old retired couple spending time with each other
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You have to start saving today for your retirement. Start a fund or buy an insurance policy that enables you each month to deposit a fixed amount as a retirement plan.
Studies have suggested that people tend to perform better and lead a stress-free life when they have financial security for their future.

Read this too: Great Social Entrepreneurs Care About These Things!

2.     Building an emergency fund

Emergency Funds and financial calculator
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God-forbid any unfortunate financial situation occurs, you should be prepaid for it before hand. Stash some cash each month for this emergency fund, open a savings account for this purpose.
By following this decision case of any medical emergency or a threat to your current job, you will have a safety net to fall back on.

3.     Pay off your credit cards

credit cards and financial decisions
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Surely the idea of having a credit card sounds good. But it is not much beneficial if you are trying to save some money. Never carry any balance on your credit cards and try to clear your credit as soon as possible. Even though it helps to delay your payment but it comes at a cost too.

Bank usually charge 18% or more interest rates to your total credit. So basically, clear your credit and save some cash along the way.

4.     Pay your bills on time every month

Pay electric bills regularly .
Image /electric bills

Whether you have credit card bills, mortgages, student loan, auto loans or other debts. Do not ever miss the monthly payment of it as it will just pile up the real credit and also add some interest on it too.
Try to clear your monthly installments each month and remain interest-free, now that is called smart financial planning.

5.     Buy a home that you can actually afford

affordable house should be bought.
Image/ Buying a house

We know that when you are looking out to buy a new house, you want to buy your dream house. But stop and assess your present financial situation. Would it be sensible to have a mortgage that would roughly comprise of 50% to 60% of your income? Instead, go for a house that is more inside your budget. Financial experts suggest that the monthly installment of your home loan should not be more than 30% of your gross monthly income.

6.     Track your spending

track you spending
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How many useless and unnecessary expenses do you make each month? Track and keep a record of your daily purchases to pinpoint the spending habits that are making a dent in your pocket.

Keep a diary and note down all the expenses you make. If you realize that you are spending way too much on takeaways or shopping, try to control it and you might save some of your hard-earned money.

7.     Create a household budget

household budget calculations
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The golden rule of handling money is to create a budget first. What is your total income and how much are you going to spend will be clear to you after making a monthly budget. Economists have suggested that making a monthly budget also helps in saving more.

Making budget isn’t so difficult, just write down your monthly income and estimate how much are you going to spend on groceries, utility bills, installments and you will be good to go.

8.     Save first, then buy it

How to save money?
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Everybody wants what their heart desires, whether it is that designer watch or a new laptop. Don’t just go on and buy these things on credit cards. You have got to be neutral and decide whether you really need those things or they are just useless expenditures that can wait.

Instead of just spending and spending, start saving.