What are the 6 things that I have to bear in mind while managing my finances?

As we know, there is plenty of things that everyone is supposed to do in his financial lifelike saving for retirement which is mandatory, Investing, or paying off for the mortgage.


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In this article, we will help you find what to do with your money, regardless of the fact that you have just found a new job and you still don’t know what to do with some extra thousand dollars.

1. Try to kill your high interest and large debts

if you have got some debts with an interest rate which is above 5%, try to pay them off before anything else. If you have got a credit card debt, then this is you because the credit cards charge nearly 18 % as interest. But if you have got more than one high-interest debt to be paid off, and then try to dispose of them with the highest rate, then go to the next one that is less high.


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 The other problem that you will find with debts will depend on how much do you have. Michael Allen said (one of the portfolio managers at Wealthsimple): “We recommend to our clients to keep a debt-to-income ratio that is not more than two and a half to one», That is to say; you have to multiply your income by 2.5, if the number is less than your outstanding debt (including the home mortgages and your car loans) then it is advisable to pay it down.

2. Work on Building the right emergency fund


it is advisable to build an emergency fund within three to six months as a worth of living expenses, the question is; should I be laid off or stop working because of an illness. Try to keep in a place that is conservative such as saving accounts.

But, this can be a bummer if you are so enthusiastic to start your investment. But, when life hits the fan, I am sure you will not want to take out expensive loans for your unexpected bills to be paid off.

3. Try to take advantage of the employer-matched investing programs


once your high-interest debt is cleared, and you have built up one of the emergency funds, then you will be completely ready to start investing.

First, if your employer is matching contributions to the Group Retirement Savings Plan then try take advantage of that and don’t miss that opportunity. Actually, employers are willing to match to a portion of your wage, like 3 or even 5 percent. That is to say, if the employers match, then you are getting an extra 3 to 5 percent as an income.

We highly advise you to contribute the exact percentage that your employers are matching so that you can get the higher amount possible of money from them. Then you will have to stop there because the Group Retirement Savings Plan limited some of the investment plan options, and you will be supposed the money left in another way.

Keep reading to find out the What are the 6 things that I have to bear in mind while managing my finances?

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