Some of you may know this, some of you may not.. But I used to work in the financial services industry. Studying and working this field gave me some great skills to use for the rest of my life.
I have five rules that I live by day to day, they are standard rules but crucial ones.
1. Pay off high interest rate debt first.
Whether this is a credit card or personal loan, sit down and work out all your rates and minimum payments. Then pay as much as you can in extra payments on your highest interest debt. Once this is paid off, use it to snowball effect your other loans, use the money you were putting towards that first debt to your next and so forth.
2. Know your budget.
Keep track of where and when your money is coming and going. This will give you a better idea of your financial standing, and whether you really can afford that item you've got your eye on. I keep a monthly budget on our fridge, which I enter into an excel spreadsheet at the end of the month.
3. Spend less than you earn.
Pretty obvious really. Using a budget will tell you if you're achieving this.
4. Diversify your savings.
It doesn't matter how much you have, it does not have to be $10k!! You can invest in a variety of options from shares to bonds to gold and more. The key is to diversify, and the younger you are the higher the risk you can take.
5. Add to your super.
In Australia we are lucky enough to have enforced employer contribution, but even when this eventually increases to 12% this still is not enough for you to retire on.
They are a lot of other little rules that I use, but these are the big basics that must be adhered for financial success.
Regards,
Chantal
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