Savvy Financial Advice

By   January 23, 2015

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The New Year is in full swing which means that everyone is making resolutions. One of the most common things people promise to do (especially in January) is to be smarter about their money. As we feel the pinch after excessive spending over the festive season the determination to get this right has never been stronger. While most people end up breaking this resolution here are some tips to make sure you don’t fall into this trap. Keep reading to find out more!

 

Be Realistic

 

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This is probably the most important tip we can give you. If you spend x amount on groceries each week, don’t underestimate and say you spend w on groceries. Rather, most financial planners recommend keeping a comprehensive spending journal for at least two weeks before you set out your budget. This way you can establish realistic numbers. You will also be able to see where your money is going and where you need to tighten your belt. It will also allow you to put money aside for short and long term goals.

 

Luxury v Necessity

 

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It might seem like a rather straight forward thing, but a lot of the things we spend money on are the things we want. Not the things we need. If you don’t have to have it in order to survive, then it is a want. If the purchase doesn’t fit comfortably into your budget, you need to leave it until your budget is ready to handle the expense.

 

Don’t Count on the Next Bonus

 

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Until the money is physically in your account, don’t spend it. A lot of money making ventures don’t come with guarantees, and it’s never a good idea to gamble with what “could be”. For example, stocks could or could not double within a year, so to plan your budget around what may happen could leave you in a tough financial position. By focussing on your current financial status, you are more likely to achieve your goals.

 

Think Before Acting

 

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It is said that 95% of purchases are based on emotions and only 5% are made due to the numbers. It is extremely important to make decisions based on what you need and not on what you want. Before you sign an agreement for any large ticket item, take a look at your budget to make sure you can really afford the purchase. However, if you play the lotto online and get lucky to have those winning lotto numbers, you won’t have to worry about this anymore.

 

Cash v Credit

 

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If more than 20% of your monthly income is going towards loans and credit cards, you are likely to hit financial problems. When you make use of a credit card and don’t pay off the balance at the end of each month, you end up paying more for your purchases. The interest earned on your credit cards will also limit the amount you can save each month. It is better to pay cash for things. Furthermore, you can ask for a discount which many retailers are happy to give.

 

So maybe all of this sounds a bit daunting and you just want to escape from reality and live the dream life. It is possible, if you play the lotto online.

You can do it from anywhere in the world – all you need is an internet connection and you are good to go. Why not give it a try and find the financial freedom you truly deserve?