Being able to save money can be seen as a privilege these days. Having the spare income available to sock away bit by bit, whilst also potentially paying off debt and paying the rent, is a sign your financial wealth is really on the up! However, did you know that money you put into your savings account can work harder for you? There are various ways to make good use out of it, so let’s go through a few of the most effective methods below.
Where are you currently putting all of your cash savings? In a standard savings account? Don’t worry, this is where we all dump money we want to save for later and think no more about it. However, there are better savings accounts out there that can make your money go further, but only if you’re willing to lock your cash away for a bit longer.
With accounts like these, the longer you go without touching your savings, the higher the interest rate can climb. All you need to do is sign up and deposit some money in them – the more you put in, the more you’ll get out, but only if you’re able to live without access to the money for upwards of 5 years.
Invest Here and There
Investing could double your money in a matter of short months. Of course, you don’t want to plug everything you have into an investment of any kind. Most of all you need to have some savings leftover that are accessible, just in case you need them at a pinch. But aside from this, it’s also quite dangerous to sink all your money into one pit – a diverse portfolio is a strong one!
So if you want to get to know more about the investing world, and you want to be absolutely sure you’ve learnt as much as you can, it might be an idea to check out The Forex Library trading course. Investing can go extremely well when you know what you’re handling, and being up to date on investing/trading types, risk measurement methods, and ways to spread out your portfolio is the best way to stay safe.
Look into Programs
There are a lot of financial assistance programs out there that you may be entitled to. Taking advantage of these can give you a real step up in the world when you need it most. For example, if you’re in the UK, you can use the Help to Buy scheme to get a boost when you’re putting a down payment on a house for the first time. And of course, if you’re currently in full time work, you can ask your employer to match your pension contributions. All it takes is a bit of research and the courage to apply.
If you want your savings to go further, don’t just let them sit untouched! There’s more help out there than you may realise.
When a couple decides to get a divorce, the last thing on their mind is probably money. However, the financial end of a divorce can be just as complicated as the emotional end. This blog post will discuss some tips for handling the financial end of a divorce and will cover topics such as dividing assets, alimony and child support payments and managing debt. If you are going through a divorce, it is crucial to understand these concepts so that you can make informed decisions about your future.
One of the first things you will need to do when getting a divorce is to divide your assets. This can be a complicated process, especially if you have a lot of assets. You and your spouse will need to decide who gets what. If you have children, you will also need to consider how they will be taken care of financially.
Some couples are able to divide their assets amicably, but others may need to go through mediation or arbitration and use professionals who specialize in International asset tracing in divorce. It is important to remember that each state has different laws about asset division, so it is important to consult with a lawyer before making any decisions.
2) Alimony and child support payments
Another financial consideration of divorce is alimony and child support payments. Alimony is money that one spouse pays to the other after a divorce. Child support is money that one parent pays to the other for the care of their children. Both of these payments are typically ordered by a court.
The amount of alimony and child support you will pay or receive will depend on many factors, such as your income, the needs of your ex-spouse or children, and the laws in your state. Therefore, it is important to consult with a lawyer to understand how these payments work in your state.
3) Managing debt
Another financial issue to consider after a divorce is how to manage your debts. You and your spouse will need to decide who is responsible for paying off any joint debts, such as a mortgage or credit card debt. If you have a lot of debt, you may need to negotiate with your creditors about payment plans or consolidation loans.
4) Taxes
One final financial consideration of divorce is taxes. When you are married, you and your spouse can file your taxes jointly. However, after a divorce, you will need to file your taxes separately. This means that you will need to know how to prepare your own taxes. You may also be eligible for certain tax deductions, such as the Head of Household deduction.
If you are getting a divorce, it is essential to consult with a tax professional to understand how this will affect your taxes.
Divorce can be a difficult time financially, but by understanding the basics of asset division, alimony and child support payments, and debt management, you can make informed decisions about your future. With careful planning and these tips in mind, you can make the financial side of divorce a little bit easier.
Do you want to make money while you sleep? Do you want to be able to quit your day job and focus on your own projects? If so, then you need to start generating passive income. Passive income is income that you earn without having to work for it. It is the holy grail of income generation, and it is achievable if you know what you’re doing. Here we will discuss what passive income is, how to create it, and some of the best ways to earn it!
Passive income is defined as income that you earn without having to work for it. This means that you can generate money even while you’re sleeping! The key to creating passive income is finding a way to make money without putting in an active effort. In addition, passive income should be something that you can do once and continue to receive payments for it over time. There are a few different ways to do this, but the most common is to create a product or service that can be sold on autopilot.
How To Create Passive Income?
There are a few different ways that you can create passive income. This means that you create the product or service once and then continue to receive payments for it over time. Another way to do this is to invest in real estate or stocks and receive dividends.
Real Estate:
One way to create passive income is through real estate investing. This can be done by purchasing a property and then renting it out to tenants. When purchasing a property, ensure that you consult a mortgage adviser to ensure that the property is a good investment.
Stocks:
Another way to create passive income is through stocks. When you invest in stocks, you buy a piece of a company. If the company does well, then the stock will go up in value. This increase in value can be sold for a profit.
Membership Site:
Another way to create passive income is through a membership site. This is a website where people can sign up and pay a monthly fee to access exclusive content. This content can be anything from videos and e-books to courses and software.
Product Sales:
Another way to create passive income is through product sales. This can be done by creating a physical product or a digital product. If you create a physical product, you can sell it on sites like Amazon or eBay. If you create a digital product, you can sell it as an eBook on Amazon or as a course on Udemy.
Blog Advertising:
Another way to create passive income is through blog advertising. This is where you allow companies to place ads on your blog in exchange for a fee.
Affiliate Marketing:
Another way to create passive income is through affiliate marketing. This is where you promote other people’s products or services and receive a commission for every sale you make.
The key to creating passive income is finding a way to make money without putting in an active effort.
Final Thoughts
Passive income is a great way to make money without working for it. There are a few different ways to create passive income, but the most common is to create a product or service that can be sold on autopilot. If you’re looking for a way to make money, then passive income is the way to go!
Making financial decisions is never easy, but it’s especially tough in today’s economy. If you’re not sure how to manage your finances better in 2022, don’t worry – you’re not alone. This blog post will discuss some critical financial decisions that you need to make this year. We’ll also provide tips on how to make the most of your money and stay out of debt. So whether you’re planning to move, invest or simply save for a rainy day, read on for advice that will help you reach your financial goals!
Before you can start making financial decisions, you need to figure out what your priorities are. What do you want to achieve in the next year? Do you want to save up for a down payment on a house? Or are you looking to invest in your future by starting a business? Once you know what’s important to you, it will be easier to make financial decisions that align with your goals.
#2. Make a budget
If you want to be successful in managing your finances, you need to create a budget. Sit down and figure out how much money you need to live each month comfortably. Then, track your expenses and make sure you’re not spending more than you can afford. It may take some time to get used to living on a budget, but it’s worth it if it means reaching your financial goals.
There are a few different ways to approach making a budget. You can use the 50/30/20 rule, which allocates 50% of your income towards essentials like rent and groceries, 30% towards non-essentials like entertainment and travel, and 20% towards savings or debt repayment. Or, you can use the envelope method, which involves dividing your cash into different “envelopes” for different expenses. Whichever approach you choose, the most important thing is to stick to your budget.
If you’re not sure where to start, there are plenty of budgeting apps and websites that can help you get started. Mint is a popular option that enables you to track your spending and create a budget based on your income and goals.
#3. Invest in yourself
One of the best ways to manage your finances is to invest in yourself. Whether you’re looking to improve your career prospects or simply want to learn new skills, investing in yourself is a smart way to use your money. Consider taking a class, attending a conference or even starting your own business. Not only will you benefit from the knowledge and experience you gain, but you may also be able to make some money back through increased earnings potential.
Investing in yourself doesn’t have to be expensive. There are plenty of free or low-cost resources available online and at your local library. So if you’re not sure where to start, do some research and find an investment that fits both your budget and your goals.
#4. Move to another location
If you’re struggling to make ends meet, it may be time to consider moving to another location. This could mean downsizing your home, relocating to a more affordable city or even moving in with family or friends. While it’s not always possible to up and move, it’s worth considering if it would help you save money in the long run. Madison Fox provides luxury properties if you are interested in moving.
Of course, there are some drawbacks to moving. You may have to give up your current job, leave behind your support network or deal with the hassle of packing and unpacking all of your belongings. But if you’re confident that the move would be beneficial for your finances, then it’s definitely worth considering.
For many of us, some form of debt is a fact of life, but in my view it’s something we should use for our advantage rather than against us.
Carrying a lot of consumer debt such as credit cards and loans acts like an anchor dragging behind us or trying to drive with the handbrake on.
Not that I am demonising all kinds of debt, far from it. How difficult would buying a house be without a mortgage or many of the functions of modern life without some kind of credit option?
My purpose here is to encourage you to pause for a moment and think about how much debt you have and how quickly you can pay it off.
If you have credit cards do you pay off the full balance very month? If so great, if not you are certainly not alone. The average credit card debt in the UK is almost £2000.
Do you remember opening a credit card account? Whether online or over the phone, you were most likely given the option to make you monthly payments by direct debit. Which is a good thing, so you don’t forget the payment and incur fees plus damage to your credit score.
But here’s the thing, the credit card companies usually give you the option to pay the full balance or a minimum percentage such as 2 or 3%. This is a sneaky trick which costs you more in interest and takes years to pay off the debt. Think about it for a moment, how do the credit card companies make money? Largely by charging you and I interest on our outstanding balances right. So, it’s in their interest (excuse the pun) to keep you paying the debt for as long as possible.
I made a video which explains saving money on credit cards in more detail:
As an example, if you had £2000 outstanding on your credit card at a 20% APR, a minimum 2% payment would be equivalent to £40 a month.
If your direct debit was set up for this £40 fixed payment it would take 7 years 11 months to clear the debt and a total interest cost of £1,818.
But if you just left it alone and paid the 2% as a direct debit it would take, wait for it, 42 years to clear the debt at a total cost of £5,588!
I don’t know about you but that makes me angry and is one of the reasons I am so passionate about financial education to stop people being ripped off like this.
Find a Lower APR
Once you have ensured you are paying a fixed amount, rather than a percentage the next step is looking at the cost of interest or APR and if you can switch to a cheaper provider.
In these days of low interest rates, there is no need to be paying 20 or 30% interest on your credit cards. Use a comparison site to see if you can switch outstanding balances to a lower rate card or take advantage of a zero percent offer.
Of the money you pay every month, the vast majority goes towards the interest and very little is taken of what is called the principal, or amount you owe. So basically, you are running to stand still.
With a zero rate card, the payments are all going towards paying off the principal, which is why the debt can be cleared faster.
What about debt consolidation loans? Good question. If you have several credit cards at say 20% interest and could clear them with a loan at for example 10% that would make sense, right? Well, maybe, it depends on how long you take the loan out for. Its tempting to go for a longer term perhaps 5 years or more and thereby reduce your monthly outgoings. But remember to look at the total cost of borrowing, which should be provided.
It’s nice to reduce the amount you are paying every month, particularly if money is a bit tight at the moment. But it can be a false economy if you end up paying more in interest in the long term.
Plus if you do go down this route, once you clear your credit cards don’t be tempted to start spending on them again. Hide them in a drawer for emergencies or close one or two if you have several. Keeping your credit utilisation rate low improves your credit score. So as tempting as it might be to ceremoniously cut them up, keeping a credit card with no or low balance can be a good thing.
Having a Plan
The third way I am going to suggest you deal with debt is by creating a plan for overpaying your credit cards and loans but in a systematic way.
In my courses and live events, I teach a system called the snowball effect.
To start write down the outstanding balances on all your credit cards and loans. You may wish to use a simple spreadsheet or a pen and paper.
Then write down the interest rate and minimum monthly payment for each one.
Next rank them in order of the outstanding balance, with the lowest at the top.
Each month you commit to overpaying that amount by as much as you can. Maybe you can earn a little extra from working overtime, a second job or a side hustle business. Maybe you can also trim your expenses elsewhere.
Imagine that the minimum payment was £40 as in our earlier example and you could find an extra £50 per month and you directed the combined £90 at the first balance. All the extra payments are taken off the principal because your regular payment is covering the interest.
After a few months that debt has gone. You now have a ‘spare’ £90 per month which you use to target the next lowest balance. Now that card will be cleared in a much shorter time and you can roll the mount you were paying there onto your next debt.
It also works for loans and even your mortgage, if your provider will allow a degree of over payment.
In Summary
Lots of information here so let’s recap.
Start by getting clear about how much you owe, and the minimum payments needed for each card or loan.
Then look to switch to zero or low-rate cards if you can.
Ake sure you are paying a minimum amount as a fixed sum rather than a percentage.
Finally use the snowball effect to create a plan and stick with it. You will see the debts dissolve in record time.
It takes a little time and discipline but as Jim Rohn so eloquently said, the pain of discipline is always less than the pain of regret.
If you would like some help or coaching through this, debt management forms part of my Financial Liberation programme, which is a 6-week live online course. Details are on our website at fearlessfinance.co.
