Every single person who earns a stable income, and doesn’t fall prey to any terrible misfortunes, should be able to build a sizeable nest egg for himself or herself with a little self discipline. It doesn’t matter how much you earn, if you plan properly, you will be able to save.
The trick is to delay gratification when it comes to spending. Ask yourself what the real cost of an impulse purchase will be. Think of what it will cost you today and also tomorrow. One of the worst reasons for over spending is because you want to compete with somebody. Always trying to have better things than the next person can turn into a disease and severely hamper your financial stability. People guilty of doing this will normally over spend and then borrow more and more money, putting themselves into serious debt.
Avoid the debt-trap at all costs, because once you are servicing your debts by borrowing money from elsewhere, it is extremely difficult to get out of. These debt relief tips may be for you.
It is never too early to start saving. Even as little as 5% of your income will add up to a lot of money over time. This is the magic of compound interest. Saving is far better than borrowing and incurring debt and you can make sure that you are comfortable later on. A good way to save is to sign a debit order. In this way, you can write off your debit orders each month and budget around what is left afterwards. Saving is far better than borrowing and incurring debt and you can make sure that you are comfortable later on.
Here are some things you need to watch out for.
Make sure that your debt repayments don’t exceed 40% of your take home pay. If they get as high as 50%, then you know that you are in serious trouble.
If your vehicle is not insured, then you are at risk. If you don’t have a will, make one fast.
Resist all offers for finance, as this is the fastest way to get in the red.
If purchasing a vehicle, make sure the repayments are not higher than 17% of your salary.
Make sure that any saving that you are contributing to are working on a compound and not a simple interest system.
With just a little will power and some savvy saving, you will be living the retirement of your dreams.