Getting the Best Financial Planning Right For 2010
As it is the normal practice for millions of people all over the world, the last thing in the agenda as the social welfare policy is the resolution for a better way of life in the New Year and what they normally have on the cards is whatever they consider as all what they did wrong in the outgoing year that would give way to piety, progress and wholesale satisfaction in the entire ramification of life, financial success in all their endeavors and better mutual relationship with the people in their immediate and remote neighborhood in the New Year.
Some people, however, feel it is more timely for them to improve their finances then ever before taking into account the ever biting global economic meltdown and high unemployment rate that now makes nonsense of the global social engineering in that area of life.
Many people, in their own wisdom, normally make unalloyed self-assessment to identify what they did wrong in terms of financial success in a very critical way and pay serious attention as what they regard as a new dimension to make them stay ahead of monetary worries in the coming months of the New Year. For this step of people making a workable budget is the first priority and they make sure they follow up the entries in it to the letter. In this unique budget, they not only include their regular unavoidable bills and taxes including the costs that occur less often such as car maintenance, house rents, mortgages etc…
Once the have the list of all their outgoings, they look for any areas where they could make some cuts and ensure they have enough money to set aside for food, house rents, important but not essential items such as mobile telephones, and transport costs and luxury, such as going out. The key to keep above debt is to understand exactly how much you owe and what interest are you being charged while it will do you a whale of good if you pay off debts with highest interests first.
There is no gainsaying the fact that saving is also a very inevitable aspect of financial planning for the New Year as it serves as a cushion effect for unexpected expenses. According to a recent research less than 40% people could not save in 2009 while at least 20% had nothing to fall back when they were on the tight rope so building a financial nest egg is what should not be avoided at all cost. The reasonable thing, the report said, is to keep the equivalent of four to six months worth of your income in a savings account.
One should also try to include some money for savings when drawing up a budget rather than waiting to see if something is left at the end of the month, this is because regular savings accounts often reward people who keep aside a certain amount each month with higher interest rates. The need to ensure the discipline of reviewing one state’s of finance on a regular basis cannot be overemphasized so it is good to set aside some time every month to check your bank statements and see that your money is working for you.
It is also good to plan for retirement since this helps to improve personal financial resources after years of employment. Although this may seem to be a long time if you are still young, it is very critical to start contributing to a pension fund as early as possible in 2010 if this has not been done already.