26/05/2021
Make money! use your head!
5 FINANCIAL PLANNING HACKS PROFESSIONALS USE
1) Separate bad debts from good debts
When looking at your accounts and the debts your have always classify them and take into consideration the number of debts, types of debts and each one’s status, further classify them into two final categories , good debts and bad debts
You shouldn’t be running up bills on your credit cards carelessly nor spending more than you earn on things that don’t have much use over a long period of time.
An overdue credit card, which is good example of bad debt, will generate a bad credit score, while mortgages are acceptable provided they are properly monitored
2) Play it by the ear
Whilst you are to play it by the book on how you manage your finances, the best and most intuitive things happen by tactics that aren’t found in the book so it’s always wise keep your ear out for latest trends and changes in the financial world.
3) Ensure you have passive income streams
Passive income is a major tool in keeping constant cash flow in ones finances in order has savings, funds to invest and also to generally maintain a lifestyle and a livelihood, so having more than one is crucial
4)Read the fine print
As you become more financially conscious, you should be more prone to pay attention to details of contracts and agreements you get yourself and projects you decide to commit finances to. If there is no black and white then it’s not right, 9 times out of ten in case of a disagreement there would be no proof to back what the initial agreement was.
5) Priotize payments
A very important aspect to finances is how to prioritize your payments, the tendency is to spend on shopping or eating out as soon as money enters your account.
However, the best approach is to channel the money required to be put into savings and investments and pay your essential bills. For some important payments it would be wise to automate them so that you never miss a payment on them, such as mortgage, which is very important
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