5 Tips How To Manage Your Finances For Future Liabilities
Today you are doing good in your job or business. This is fine. Sometime you will retire and then what? You need to plan post retirement benefits too along with your other financial liabilities right from the beginning when you start earning. Below are some of the useful tips to better manage your income for future savings and emergencies.
If your income is irregular, you may run out of funds during the time of emergencies. The first and foremost thing required is to invest in health and disability insurance to avoid running out of funds. It is not to forget the costs of medical aid are soaring high.
A curveball fund is the next necessary investment after you have created for health and disability insurance. This fund can help during the time of small hiccups such as hole in drainage pipe and sudden travel with friends or family.
It is always suggested to start saving for retirement to the earliest, in fact from the time you start earning. Those who have irregular income must save at least 10 percent of the income for retirement. It is better if you can split 20 percent of your cash flow for the purpose.
You, like others, wish to be debt-free at some point. Before you start clearing those, it is important to note you should not use up all your income to pay it off. Also, first clear those debts which are of high interest compared to the lower interest ones as you can hang on with it for longer periods of time.
If your income is irregular, it is believed you don’t have room for lavish expenditure. However, it is not true. You can spend, but ahead of it you must prioritize your personal spending. Save a little pleasure reserve too every month from your income so that you don’t find yourself odd one out when it is time to pamper yourself.
Do share your own views too about savings part with us fellow readers in the below given comment box.