In today’s world, with the rate of inflation rising and your monthly income not reflecting a significant increase, it is difficult to save money. A survey conducted in 2017 showed that out of 8000 people, over 3100 had $0 in savings. Like most people, you also have hopes and dreams of buying a new home, a brand new car, or even save up for your children’s future, but with the current financial situation of almost everyone, all of the above goals seem impossible.
Financial planning is your way out of this mess; enabling you to manage your money better so you can achieve your dreams and goals. Take a look at our simple and useful tips you can follow to enough money for your kid’s future.
#1. Record Your Expenses
To start off, you need to be more organized. It may sound weird to write down every dollar you spend, but it will help you find out where all your money went. Once you have compiled your data, you can categorize it by prioritizing all your necessities. Use your monthly credit card bills and bank statement to analyze your cash flow.
#2. Create a Savings Plan
After finalizing your budget, add a savings plan to it. Dedicate 10-20% of your monthly income to savings. If you realize that your monthly expenditure is too high for you to save that much, its high time you start cutting back. Highlight all your unnecessary expenses like dining out, mobile usage and other entertainment expenses. Try to cut them down as much as you can, in order to start saving.
#3. Choose Something to Save For
If you don’t know where you are going, it’s pretty obvious you’ll end up getting lost. Same goes for savings! If you don’t know what you’re saving for, how will you get the motivation to do it? Write down all short-term and long-term goals that you would like to save up for, and the exact amount. A few goals you can record are; a vacation, emergencies, retirement, and your kid’s education.
By following these steps, you can easily create a plan by yourself and start saving in no time. However, many will face difficulties in following these tips on their own. In such cases, you also have the choice of hiring a professional.
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#4. Utilize Coupon Codes to Buy Products
Couponing has become a common trend these days. Though many may consider collecting coupons a traditional money-saving tactic, many people have started using it once again. Thanks to numerous free coupon website, the user can easily get their hands on some of the best coupon codes. For example, if you type in queries like Waterford Promo Code on Google, you’ll be presented with great discounts that you can avail next time you shop from this store. Therefore, the next time you are about to purchase something, look for their coupon first to save more money for the future.
#5. Hire a Financial Advisor
Financial advisors are certified planners who help clients organize their finances. These professionals can easily look up all your accounts and advise you on how to improve your savings and reduce your expense. Though they charge a fee, the service they provide is highly beneficial for you as it will save you the time and a lot of money in the long run.
Financial advisors will also inform you about investment opportunities so that you can start generating extra income from your savings. A survey showed that around 65% of people know where to invest but can’t convert their knowledge into action. A financial advisor can change that by guiding you. You can also ask them to provide you with retirement plans and insurance policies that cover your children’s future.
If you are ready to spend a few bucks for some expert advice and receive high-quality plans, meet a financial advisor ASAP and start saving more!
#6. Wrap Up
Saving money isn’t easy, but with a motive it becomes bearable. If you have the time and knowledge of managing your own funds you can follow our essential tips. On the other hand, individuals who are willing and able to hire a professional financial planner to plan everything for them, they should consult a good advisor. Plan for your kid’s future now to avoid falling in to debt traps in the future.