Inflation in the US is at an all-time high and threatens to destroy your financial security. As assets and consumer goods become more expensive, it has never been more necessary to be making good financial decisions. If you want to someday afford your dream house or retirement, you’re going to need the compounding effects of good financial management on your side.
Making great financial decisions starts as a choice, but it does become a habit. If you want to learn how to start making great moves with your finances then just keep on reading.
1. Get Insurance
If you haven’t got health, home, or car insurance then spending extra money may not seem like a great way to save money. The thing about insurance is that it actually does save you a lot of money across your life span.
Firstly, as you age you will reach a point where health insurance will become a necessity. Joining late after decades of living without cover is more expensive in that crucial time than it would have been if you’d been insured all those years. Second, and more important, medical emergencies can devastate your personal finances if you aren’t covered when they happen.
2. Debt: Get Out and Stay Out
The Federal Reserve Bank is going to be raising the interest rate by 0.25% six times before the end of 2022. Higher interest rates mean that you will be paying more interest on most or all of your debts. In order to buttress yourself against interest hikes in the future, make a strategy to get out of debt and try to live without creating new debt.
This can be very hard for some people. Seeking professional debt management solutions or counseling is a great step to take if you feel like you owe too much to ever be debt-free again.
3. Plan your Financial Decisions
Making a proactive plan for how you’ll spend your money is one of the best ways to save your hard-earned cash. Make a list of all your expenses and set aside the leftovers for saving and spending. Keeping track of your purchases in the month can also highlight savings and unnecessary spending and show you how you can budget better.
4. Save Properly
Saving with simple savings or transactional accounts isn’t the best money-saving approach. Banks often don’t pay enough interest to protect these types of accounts against inflation.
Opening a 401k, investing in precious metals, buying unit trusts or stocks in companies like Amazon and Tesla are far greater alternatives for saving money. These kinds of investments actually earn you interest and you may even get dividends from company shares.
5. Buy Shares
Buying shares is not only a form of long-term investment. You can also make money in the short term if you know how to trade well on the global stock exchanges. Buying shares in rapidly growing listed startups can make you a lot of money in the short term as well.
Also, you don’t have to be limited to your country’s stock exchange. South African gold companies and Israeli tech companies are wonderful investment opportunities. Find them and more Israeli listed companies on thejerusalemportfolio.com.
Changing Your Future Starts Now
With great financial sense, you can give yourself and your family great opportunities in the future. Stay covered, beware of debt, and practice budgeting and investing. The more you practice these financial decisions the more effective you’ll become.
Managing finance is only one side of the coin. If you’re interested in earning extra cash, go look for more money-making tips on our website.