Effective financial management is not easy, but there are certain habits that are followed by investors around the world who have mastered the art of finance management. There are simple tricks that you can follow every day. Read on to know the 13 financial habits that you must start today if you want to lead a stress-free life. Pay your bills on time This is the most important rule that you need to follow in your life. The more you delay your payments, the higher will be the penalty that you would have to pay. Therefore, ensure that your payments are done on time. Set aside an amount for yourself Do not get so anxious about savings that you forget to keep an amount for yourself. You have responsibilities towards your bills, but your primary responsibility is giving yourself what you deserve. Enable automatic payment deductions Automatic payment options are a great solution for people who find it difficult to make payments on time. Link everything to your bank account and let e-banking take care of it. You can also invest in savings automatically without worrying anymore. Stick to your budget This is one financial habit that has been repeated everywhere and is a golden rule.

When you think of hiring a contractor, you are opening your house to strangers who will be present in your house for a long time. Interviewing the contractor is the primary task to be taken care of. The following questions will help you interview and get as much information as you can about the contractor and their work. Can you justify your quotation? A quotation is a list of items required for the project and the cost of each of these items. It also includes labor and other charges to be paid by you. You need to negotiate and check whether the prices are right before you accept the quotation. Where are you from and how long have you been in this business for? Ask the contractor’s work experience to gauge their skills. Know your contractor’s background. After all, they will be spending quite some time in your house. How many people will be working with you? Get the names of the team members who will be in your house. You need to be sure that your house is in the right hands. What is your license number? If something bad were to happen, you should be equipped with the license number of the contractor for taking any legal actions against him and his crew.

You have a $100k cash in your hands and you hurriedly contact one of the brokers and think about investing it in various stocks to earn high returns. But what if you were to learn that there are better things you can do with a $100k? Following are some of the incredible ways you can use your money. You may consider this as a guide to a secured investment. Get a bigger place with great amenities When you have $100 k cash with you, the first thing you would think about is investing in real estate. Simply for the fact that real estate is one investment that can yield long-term benefits for anyone. Buying a big house with great facilities will assure you a good resale value in the future. However, you must keep in mind that this kind of investment will give you returns only after at least 10 years. So, do not rush into anything. Invest in a local franchise Sure, you will not be able to buy a franchise of huge chains, but you can always go for local brands that are doing well in the market. They cost less, and the returns are higher than the initial investment.

The amount of research that you are obsessively doing right now makes it apparent that you are a responsible buyer. You must have browsed through many sites giving you generic advice on what to consider before buying your car. Even after getting all the information, it is important to think sensibly about your decision of making such an important purchase. To simplify this difficult yet satisfying process, here are four questions that you need to consider before buying a car. Should it be old or new? This is the first and one of the most important questions to consider while buying a car. Instead of scouting outdoors and deciding whether you really need a new car to suit your lifestyle or you can do with a used car, justify why you should choose either of the two. What has been traditionally suggested is that if you are still in the learning phase, go for a used car, so even if something unfortunate were to happen, you would not regret the damages as much as you would for the new car. If you are going to purchase a used car, ensure that it has been driven for just a couple of years and is covered by insurance or a warranty, to say the least.

It is definitely possible to save for your future and also have sufficient to live for today. All you need is the right kind of guidance and a few doable tricks. Strategizing your finance is not rocket science and following are some ways that will help you see money management more simplistically than ever. Move to an affordable place You may have been born in New York but your pocket might suggest you move to Nicaragua. You can tighten up your purse strings a little and actually consider living in a place where you can enjoy similar benefits but at a cheaper price. In this way, you can be able to save on your costs of living and actually build a better financial corpus for your future. Keep emergency funds There cannot be put more emphasis on building your emergency funds. You would never know when you might need to make a massive expenditure from your pocket, which could create a dent in your finances. To avoid letting that happen, make room for some backup and start arranging some emergency funds right away. Design plans and redesign them Plan your finances well and how you would want to save and spend for your wants and needs.

One of the most important thing life gifts us is our parents. From them comes everything—love, support, care, nourishment, and financial support. Therefore, when it is our time to give back, nothing but a big heart should come in the way. Also, times are changing, and what was a smart way of handling finances back in the day need not necessarily be a smart way of handling finances today. With digitization and modernization, the face of almost everything including finances has changed. Moreover, there’s inflation and financially low-performing markets. While our parents belonged to simpler times, handling finances in modern times can become a little taxing for them. Considering all such things, a concise list has been given below of smart tips on how you can give back to your parents and provide financial help to them during their golden years: Communicate with your parents While this may not seem the easiest thing to do, it sure is necessary. You could start by telling them how you have begun to feel concerned about their future finances. This would put them at ease and comfort to discuss their finances and the steps to be taken with you. While you do not want it to seem like you’re out to get their assets, it is important to discuss things such as a will, insurance beneficiaries, and so on.

One has to work hard for years to become slightly more financially secure. Being financially stable means that you are not living from one paycheck to the next and that you’ve managed to save a considerable amount over the past few years. You have a small family now, and you feel like having your own home which you can decorate, maintain, paint and remodel as you please, instead of being at the mercy of a landlord every month. If you answer to all the descriptions above, then you are at the right stage of your life to be able to buy a home for yourself. But the problem with buying a home is that it is not something you can pick up with loose change or a month or two of saving feverishly. A loan will need to be taken, and a home loan poses difficult questions both before and after taking the loan, to answer which you have to be very strong financially, or at least have a sound plan and disciplined habits. Let us see how you can prepare yourself financially to be able to get loans easily for buying your dream house. Preapproval Is Possible You don’t need to wait till you select your house before you can speak to a bank.

In schools around the world, the importance of imparting essential financial tips is ignored such that it is only given lip service, with only mathematics teaching simple and compound interest in which kids have to solve certain sums that may or may not be helpful in their future. Parents are often dependent on educational institutions to teach their children about finance. However, it is important that the parents ensure that their child does not repeat any financial mistakes they would have made. Imparting financial knowledge is essential as the child will be able to calculate finances required for important decisions in their life. Following are a few ways in which you can make sure that your children make better decisions when it comes to handling their money. Delaying gratification from age 5 According to a research, a child’s approach towards finance is shaped at the age of 7 on an average. This means that he or she has the ability to grasp its concepts from as early an age as say 4 or 5. Therefore, they must be taught at this juncture that they can’t be stubborn to get what they want and that they would need to wait and save money to buy it.

It is said that every drop makes an ocean. This saying is quite true in context with building a huge financial corpus for yourself. Speaking of a corpus, considering the rate of inflation the country is facing today, the dollar as a currency has seen a downward spiral in terms of financial value. Considering that, a million dollars, which were a huge amount at one point of time to live a comfortable retired life, are no longer enough in today’s day and age. Due to today’s rapidly increasing standard and rate of living, you would need a lot more than just a million dollars. However, a million dollars is undoubtedly a good start too. However, if you are wondering how to go about making your first million dollars, below are some tips that can be helpful in achieving your goal. Keep a tab on your expenses This is the first and the most important step to be reaching your $1 million mark. The key here is to save more of what you earn. Yes, expenses are bound to arise. However, keeping a tab on them gives you an accurate idea of how much you are spending on your wants, needs, and desires.

As we come to terms with the harsh economic realities of our times, it is always good to pay heed to the wise words given to us by some of America’s most dynamic and gifted presidents that will hold us in good stead. Every year we celebrate President’s Day in February, and it would behoove us to pay closer attention to their advice. Thomas Jefferson’s wise words Thomas Jefferson’s invaluable advice was to live within our means. He obsessed over his finances and closely tracked his expenses but tragically died deeply in debt. He had a taste for the finer things life had to offer, such as antique paintings. However, his advice still holds true. Try not to spend more money than you have and save as much as you can to build wealth. George Washington’s policy of hedging his bets Washington used to grow tobacco, which was very profitable at the time. However, he stopped growing it as it was taking a toll on the soil and instead switched to several different crops including hemp, flax, and corn that had a local demand. In this way, he was able to diversify his portfolio and offset any possible losses on one crop with the profits of the others.