Financial Fitness Tips - Part 1

I would like to share some of my opinions your financial fitness tips.

1.) Save, save, save!

A study by Putnam Investments (a privately owned investment management firm in the U.S) showed that savings is an important component of wealth buidling. By saving a substantial amount, you can allocate a good part of savings towards investment to build a decent retirement nest egg, and in the process create a comfortable cushion for themselves in the event of periodic setbacks as a result of market volatility and unforeseen circumstances. In other words, let them know that the more they save, the more they can invest to achieve their financial goals.

2.) Status Savvy

We should check through our own financial status thoroughly. This is imperative to start mapping a long-term financial strategy. Begin by reviewing each financial statement such as bank and credit card statements, loans, mortgages, and investment portfolios. By meticulously tracking every expense, they will be able to have a clear view of their finances and know exactly where their money is spent on every month and only be collating their financial history are they able to plan for their next investment.

3.) Cutting Edge

With the rising inflation rate, cutting back on unnecessary spending may be the answer to increase our savings. How do we differentiate between what we need and what we want? For example, do we need that RM 13 cup of coffee at our favourite coffee joint or the designer handbag that is screaming out to us from the display window? What if we cut down on eating out and eat at home more often? Be conscious of these little expenses that may add up to a substantial sum at the end of the month. Imagine how much more we can save in a month if we do not spend on needless things!

4.) Dealing with Debt

A good advice to you and me is to pay off as much of the debts we have accumulated through the years as we can. Pay off loans at the exact date of each month. Credit card debt is one of the major source of setbacks to get ahead financially, so use it sparingly and only if the need arises Remember that the little piece of plastic, although convenient to use, may just leave them with more debt than they can handle. Sometimes, it is better to just to whip out the cash instead of using plastic. But if plastic is used, be very disciplined in servicing the debt on time.

Next up on Financial Fitness Tips - Part 2