How to Get Hold of a Financially Secure Future

The economic crisis is gripping the whole nation and you might not know when exactly some unfortunate events can hit you. Hopefully, you won’t be on list of the next batch of applicants that are filing for unemployment benefits. But, who knows? You can never be so sure on anything, especially the future. As such, it won’t really hurt if you prepare. Right now is the best time to act and below are some things that you should do.

1. Have Plenty of Cash

Before things get rough and rowdy, you should have tucked in enough cash for tomorrow. Make it a point to have some money kept somewhere safe. It may be in the form of bank savings or money market funds. Just make sure that you won’t have to sell your house or your car when financial crisis strikes at you.

2. Try To Minimize Your Expenses

The best way to financial security in the future is to have some sort of savings. However, you ought to take note of the fact that you cannot possibly save money if you keep on spending every dollar that you have. If you really want to save, minimize your expenses. Avoid spending on luxurious hobbies or services that you can live without such as dry cleaning bills, dining out expenses, and domestic help. If you can, devise a budget plan and set aside at least 10% of your monthly income for savings.

3. Get Rid Of Your Debts

Interest rates and finance charges for multiple debts can eat up most of your monthly income. Unfortunately, they could mount up faster than you anticipated if majority of them have variable rates. That is why if you have a multitude of debts, you should start getting rid of them as early as you can. The best way to do this is to focus on one debt at a time. Prioritize debts which have the highest rates. Whenever you have some extra income, channel the money to debt reduction.

4. Is Your Money Secure in that Bank?

If you want to keep your savings in a bank instead of investing it in some form of business, check if your money is secure. Keep in mind that the banks only guarantee up to $250,000 of your savings deposit. As such, it you have multiple savings in small amounts, it will be best if you consolidate them into one big amount. However, you should keep no more than $100,000 in any bank or finance institution.

5. Refinance Your Mortgage

Watch your mortgage. Note that the interest rates of most long term debts have been mounting up gradually over the past few weeks. If your mortgage has a variable rate, your expected rate might double next year. Remember that the weaker the dollar gets, the higher the rates become. It will be best if you refinance your mortgage and settle for a fixed rate mortgage right away.

6. Check Your Credit Card

Bear in mind that credit card rates have high interest fees. Such usually fall within the range of 15% to 20%, however, most credit card companies raise their interest rates without giving notice to the clients. This happens if you keep on missing your monthly repayment due dates. That is why you should grab your phone and verify the exact amount of your credit card interest rates right away. If you think that the rate is too high, you can try negotiating with your lender.


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