Showing posts with label financial planning process. Show all posts
Showing posts with label financial planning process. Show all posts

Friday, August 30, 2013

Properly Managing Your Personal Finances

Although the recession may be nearly over – according to some though not all financial experts – that doesn’t mean you can breathe a sigh of relief and go back to your old financial ways. There are some excellent benefits afforded to those who make the effort to properly manage their personal finances, and in fact, many experts are now of the opinion that personal finance should be a compulsory subject taught in high schools to educate young people how to effectively manage their finances in order to avoid – amongst other problematic outcomes – filing for bankruptcy. 

Why properly managing your finances is important

It’s important to learn how to manage your personal finances for a number of reasons, all of which concern your quality of life. Whilst it isn’t wrong to point out that there are more important things in life than money, it is, however, difficult to enjoy life and your relationships when you’re under the cosh financially.

Borrowing – When applying for finance, like a credit card or loan for example, your credit history will prove to be an important factor in how much you repay on what you borrow. For example if you have a poor credit history as a result of managing your personal finances poorly, you’re likely to repay much more than someone who has kept their personal finances in order.

Marriage and relationships – Your personal finances can also affect your marriage or relationship with your partner for better or for worse. Nothing breaks up relationships faster or more destructively than financial strife and indeed during times of financial strife, like the global economic crisis of late, the number of breakups and divorces is often found to increase.

Your future – It’s essentially your future that’s at stake where the management of your personal finances are concerned, and that of your family if you have dependents. This should serve as the impetus required to take a more active interest in properly managing your personal finances. Your retirement and your children’s future are at stake here, which should illustrate the importance of proper personal finance management.

Personal finance apps

In recent times there have been some notable personal finance apps released for both the Android and the iOS operating systems, many of which, like Expensify, Mint, Manilla and Slice, are free to download from the Google Play store and the Apple store.

Expensify – Widely considered to be among the best apps for business travellers, this app is aimed at businesspeople but anyone can use it.

Mint – Although Mint takes a little time to set up, the general consensus is that this app is one of the most useful.

Manilla – This personal finance app has been found indispensable by those looking to consolidate their personal finances and stay on top of bills.

Slice – An ideal personal finance app for those with a love of online shopping, Slice supports all the major service providers including Gmail and iCloud.

A few handy tips for better personal finance management when borrowing

There are a number of ways to manage your personal finances more effectively, including shopping around for a personal loan in order to apply for the most competitive loan offered. Where borrowing is concerned, it’s imperative that you shop around for the most competitive products, and if you’re applying for a mortgage the general consensus is that it’s best to put down as large a deposit as possible to reduce the total amount repaid.

Furthermore, don’t overlook the importance of creating a budget when making repayments so that you’re comfortably able to repay what you’ve borrowed without adversely affecting your quality of life.

About the Author:
Morgan Finance in New Zealand is a business offering financial products for business or personal needs. To know how to get a personal loan, visit

Saturday, June 29, 2013

Retirement: Four Tips for Getting Your Finances in Order

Getting your finances in order before you retire is a great idea for anyone who is either planning their retirement, or who has suddenly found themselves in a position where they are being forced to retire. Financing for your later years doesn't have to be scary. If you are looking for a way to get your money in order before you stop working, try these four tips.

Rid Yourself of Debt

The best way to make sure that you don't outlive your money, is to cut your expenses down as much as possible. Make plans to use your retirement funds to pay off any existing debts that you have. If you don't have enough in savings to cover your debts and your income will not give enough coverage, you might want to consider filing for bankruptcy. According to a chapter 7 attorney in St Louis, getting rid of any debt is the best thing you can do to avoid bankruptcy.

Know the Facts

Figure out what your income will be. There are many people who do not know how much they can expect from their pension, their retirement fund, or Social Security. Fortunately, there are a lot of ways to find this information. Several months before you retire, gather together any documentation you have about your retirement accounts, and contact each fund manager. Also start the application process for Social Security. This usually won't take long and can help you on your way to budgeting and planning for the future.

Future Planning

Decide what you want to do in your retirement. Believe it or not, very few people actually have a plan of how they will spend their retirement. Think about your day to day life, and how you want to spend it, not just a once-a-year trip you'll take. Look into volunteer opportunities, hobbies, and maybe even part-time work. This is the chance to try something new, or something you always wished you could do. Once you know what everyday life will entail, you can plan a more precise budget.

Make Cuts Where Possible

After figuring out what your income and expenses will be, it's time to make a spending plan. If you have more income than expenses each month, come up with a plan to save the money and/or carefully plan major purchases. Be sure to include every payment you might be making, and even unforeseen events like hospital visits or house repairs. If your expenses are greater than your income, however, it's probably time to make some hard decisions about where you can make cuts, or start looking for part-time work. Perhaps it is feasible for you to sell some assets or old valuables to make sure you have enough money.

With these simple tips, panning for financing your retirement won't be a daunting task. The key is organizing and making a plan that will be easy for you to follow. Retirement is a chance to enjoy the fruits of your labor, so start by preparing now to have the time of your life.

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