Essential Facts About Home Insurance

Understanding the basic facts about home insurance is crucial to protecting your investment whether you are a first-time home buyer or an e...

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08/06/2017

Financial Planning Decisions With Zero Remorse

Remembering something or someone with distress is not an enjoyable experience and we all have been at that point at least once. So turning over in our minds the different possible ways we would have gone about it will only deprive you of your present joy and happiness. So, if you have positive financial inclinations, you will live a happy and fulfilled life.
Below are some financial planning decisions you can make that will give you zero remorse.

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1. PAYING OFF YOUR LOANS/DEBTS

 We all live in a world where it is easy to not remember deferred pleasure and luxury. Almost everything you could ever need and want can be financed. Regrettably, loans and debts are accompanied with interest rates that can reduce your net worth and savings. So, if you can focus on managing your debts or getting rid of it all together, you can and will provide yourself with a much advantageous and beneficial financial picture.

2. FOCUSING ON THE LONG TERM

Concentrating on the long term, financially speaking, is something that you will not regret. If you can start planning for your children and other life milestones and retirement, then those phases/stages of life will be easier on you when they finally arrive. So many options abound for saving and preparing for the long term such as: a 529 college savings plan, a 401(k), an Individual Retirement Account (IRA) or Roth IRA. Your retirement plan and benefits could be dependent upon your employer, also, the choice you make between a 401(k) and an IRA will also depend on your own personal needs and how much you are willing to give to the accounts.

3. FOCUS ON THE THEORY OF SAVING FIRST AND BUYING LATER

Most consumers contradict this notion by financially functioning in the opposite direction. The philosophy we usually see is buy now and pay later, this is why we are critically mired in debt as a country. When save up money and work hard towards getting something, there is every possibility that we are going to be appreciative of it more. When we acquire mundane and irrelevant items that depreciate in value as soon as you purchase it via credit line, we will not place much value on the Naira or Dollar which will in turn lead to accepting too much loans, spending too much and living outside our means. So, in the long run, saving first and then buying later is not only gratifying but it is favorable to our financial health.

4. FOCUS ON INCREASING YOUR SAVINGS

I'm sure you must have heard this line a million times already, nevertheless, it doesn't make it less important. One general principle is to save first then spend later. One of the ways you can do this is by setting a monthly realistic budget and living within your means. If you can practice this, then you can incorporate the extra money into your savings immediately you are paid. Having a substantial savings built up when those unexpected life events occur will give you peace of mind.

5. FOCUS ON HIRING A FEE-ONLY FINANCIAL ADVISOR

Fee-only financial advisors are registered investment advisors with a fiduciary responsibility to act in their clients' best interest. They do not accept any fees or compensation based on product sales. Fee-only advisors have fewer inherent conflicts of interest, and they generally provide more comprehensive advice. I may be marginally biased on this point but arming yourself with the services of an expert when you are making your financial plans will aid you in having a beneficial financial picture.

BOTTOM LINE

These decisions require persistence and perseverance on your part and it may take some time to see it to success but be assured that you are facing the possibility of an advantageous and beneficial financial life by carrying out this tips.

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