While managing money can seem both intimidating and difficult to many people, you don’t have to be a genius to provide financial security for the future. Indeed, there are often some very simple actions you can take to ensure your long term financial health. Keep reading to find out what they are.
Pay your credit card balance
Whether this means paying off the maxim payment each month or wiping it all out in one go from savings, it always pays over the long term to get rid of any credit card debt.
The reason for this is that the interest rate on most credit cards is ridiculously high. Therefore any outstanding debt you have will be costing you far more than the original amount you borrowed. With that in mind, taking steps to clear your credit card debt first, and fast is nearly always the right move. Oh, and don’t buy anything else with your credit card either – the aim is to keep your balance at zero! Otherwise, you will just find yourself in the same financial hole over and over again.
Invest 10% of your income
Financial experts also recommend that you invest at least 10% of your income if you want to manage your money successfully over the long term.
Of course, there are a myriad of investment opportunities to choose from. For example, some people prefer to invest their money into property. The idea is that even if the market does crash they will still have something to show for their money.
Alternatively, low-cost vehicles like exchange-traded funds can suit some investors. These tend to be passively managed, that is you invest your money and then wait for the longer-term returns, rather than buying and selling in line with how the market is currently fluctuating.
Lastly, some prefer to take a more active approach to the investments they make, choosing each one carefully and keeping an eye on how they are performing so they can make maximum profits.
The good news about this latter option is that buying and selling investments in this way has never been easier. Indeed, there are now many trading platforms like MetaTrader 4 which are easy to use even for those without a Wall Street background! Such platforms are also very transparent with fees so it’s simple to work out what each trade will cost, and so whether it is worthwhile.
Live a humble lifestyle
Lastly, remember that while it’s easy to upgrade our lifestyle as our income rises, a better approach is to live below our means.
Of course, it is great to have nice cars, bigger homes, and the best food that money can buy. However, a balance needs to be struck here between living the good life now and thinking about our future.
Indeed, by striking this balance this we can create a situation where we have more money that is not accounted for. Something that means we can save and invest more and better manage and grow our wealth over the long term.