Useful Tips on the Road to Prosperity  

 

Many Singaporeans dream of prosperity and affluence. Who would not? A life without stress and worry is surely a good one. Unfortunately, there are some Singaporeans who still struggle to meet both ends. The road to prosperity is indeed filled with hurdles and if we cannot cope up, we will surely head to the road of ruin or destruction.

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Instead of swearing and giving up, the best thing that you should do us to create a financial plan. Getting our finances on track is possible despite the seemingly insurmountable odds. Here are some tips shared by Chris Hogan – a financial guru:

  1. Ascertain your goals: Without a plan, you dreams and goals are only just an idea. You need a concrete and tangible plan to make it happen. Begin the year by mapping what 2016 holds be it a house or a car. If you start mapping, you will see how much money you are going to make and save. It is also recommended to set deadlines – realistic deadlines that is.
  2. Set a budget: After ascertaining the goals, the next thing that you need to do is set a budget. Budgeting is a struggle especially if you are making both ends meet but there is always something that you can forego. You need to write your monthly income vis-à-vis expenses. Cut costs if it is necessary and set spending limits.Budget-Expenses-List-325x222
  3. Deal with debts first: How can you save if you have debts to pay? The best course of action when dealing with debts is to pay it first. Hogan advises that you tackle the low debt first before moving to another card or debts with high interest. After clearing your debts, be careful not to spend so much because you might get overwhelmed.
  4. Stash an emergency fund: The reason why you are in debt is you do not have enough emergency funds. So you just tackled and cleared your debts, the next thing to do is stash an emergency fund. Making room for your emergency funds can make a difference at the end of the day. The ideal emergency fund should be worth your three to six months of salary. Saving for the rainy day is important.
  5. Start saving for retirement: Even if you are still on your 20s or 30s, saving for retirement should be thought. Do not depend on your pensions and savings because they will run out sooner or later. The best thing to do is to strengthen your investment portfolio.

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