If you’re interested in taking control of your finances and to ensure that you’ll be in a great financial position in the years to come, continue reading to discover a few foolproof finance hacks.
Foolproof finance hacks:
1. Consider saving some of your money in a term deposit
How does placing money in a term deposit differ from placing money in a regular long-term savings account? The simple answer is that you’ll usually receive a far higher interest rate on your savings if you choose to place them in a term deposit.
However, keep in mind that if you do opt to place some of your money in a term deposit, you won’t be able to withdraw or use the money which you’ve placed in a term deposit till the end of your term deposits duration.
If you’re interested, usually the longer you place your money in a term deposit, the higher the level of interest which you’ll be offered.
2. Think about investing some of your money in a few different ETF funds
What are ETF funds? ETF funds are managed funds which individuals can invest into and purchase shares in, which own shares in a wide variety of companies which all fit a certain theme.
As an example, an ETF fund may be comprised by shares in companies which are all located in a certain part of the world such as the USA, Europe or Asia. Or an ETF fund may focus on purchasing shares in a single industry such as the mining industry.
If you’ve always wanted to become an investor, it’s usually far safer to place your money in ETF funds, instead of single businesses. However, just beware that when you invest, your capital is always at risk so only invest money which you can afford to lose, to be on the safe side.
3. Don’t make decisions based on the financial advice which you receive from a single individual
One mistake which many individuals make is to make risky decisions based on the financial advice of one individual such as a paid financial advisor or a family member. Instead make sure to get advice from multiple individuals, before deciding to make an important financial decision.
4. Use automatic payments to shift money from your everyday bank account to your long-term bank account
In order to force yourself to save a portion of your income, it’s well worth creating automatic payments which will shift money to your long-term bank account each month. Which is a great idea if you plan on saving for a house or for your retirement or have plans of investing your money.
5. Review your monthly budget on a regular basis
It’s also a wise idea to remember to review your budget on a monthly basis as circumstances change over time and the same budget which you put together a year ago may not serve you well today. In fact, it’s a great idea to get into the habit of tweaking your budget as you begin to understand your household’s needs a little better.
So if you thought keeping on track of your finances had to be difficult, think again.