There are certain things in our lives that we need to develop skills for in order to lead a comfortable and happy life. Managing finances is kind of tricky, as most of us create the perfect plan every month, and yet somehow we end up spending more than we have planned. Even businesses sometimes go bankrupt due to poor financial management. However, as prices are rising like crazy every now and then, adding to it the global crisis the world is facing due to the sudden breakout of Covid-19, we need to find a way to make our lives easier in terms of finances. If you’re having trouble saving and you are always tight on money, read on, as we will provide you with 6 useful tips from financial law to ease your life.
1.Create a calendar
Creating a financial calendar will help you remember to pull a credit report periodically and pay your taxes on time. Leaving important financial due dates to memory is not a very good idea! Your financial calendar should not only include important due dates, but also utility bills payment dates, debts, and birthdays. Remember every extra penny you pay will eventually add up.
2.Check Interest rates
Whenever you are supposed to make a financial decision, think in terms of interest rates. When paying off loans, start with the one that has the highest interest rate. As for the savings accounts, choose the one with the best interest rate. If you think about it, all the issues and problems we face with debit and credit cards are because of the compound interest rate.
3.Seek Professional Help
Some business owners rely on loans to run their businesses, and sometimes, they apply for more than one loan. Failing to pay on the due dates can cause some serious legal issues. Whether it’s a personal or a business loan, lawyers at bsmlaw.com.au recommend seeking professional help when you fail to pay on the set due dates. Debt recovery and bankruptcy lawyers can help you find a way out of such financial predicaments.
4.Track Your Daily Costs
Keep track of your day-to-day expenses. This way you will get a better idea of how much you pay on certain products every month and decide which product you can let go of to save money. Even businesses should track their daily costs so that they can always cover the rents and salaries. Either way, knowing your daily expenses will allow you to set a minimum amount of money that you should not go below, which in turn makes planning your finances much easier.
5.Set 20% for Savings & 30% for Luxury
Divide half of your income where 20% of it goes to your savings account or paying off debt and 30% to spend on your lifestyle, like going to concerts, traveling, or movies. This way, you get to save money for emergencies or retirement and splurge on things you like to do. However, you have to abide by it, and only then will you feel the difference it will make in your spendings.
6.Solve Financial Problems on the Spot
Do not postpone or ignore any problem that is related to money. Tackle them on the spot. When monetary problems accumulate, you end up with an uncontrollable mess and paying a considerable amount of money trying to fix things with banks or the person you are having the problem with. If you are totally lost, and things are getting out of control, seek professional help to help you fix matters before they evolve into legal issues.
If we are to learn anything from the past couple of years, it is that life is full of uncertainties and surprises. Managing your business or personal finances is a must to live a laid-back life and reduce all the stress that comes with your financial responsibilities. It only takes proper planning. To make your life much easier, you should create a financial calendar so that you won’t miss any payment dates and plan ahead for your future expenses. Always check the interest rate and build your choices around it: if you applied for a loan, it is safer to hire the service of an experienced lawyer to avoid legal troubles with the bank. Track what you buy on a daily basis and set a limit that you shouldn’t go below. Save 20% of your income and spend 30% on things you like to do or have, and finally, solve any financial problem as soon as it arises. Life is much better when you know where you stand financially.