KNOWING YOUR STUFF IS THE SECRET TO SAVING! Yay for the weekend! Todays tip is a little longer than usual but is too thought provoking not to share so do take the time to read it. You might find it a big eye opener - and a big help too! How many of the following questions can you answer confidently? In this digital age when so much information is at our fingertips, it is amazing that so many people are still ignorant about their own financial affairs. With a little knowledge, you can prevent a huge amount of money from slipping through your fingers. All you need to do is know your stuff! For example: Know Your Debt: What do you owe and to whom? What is the interest rate/s? What date and how much are the repayments? How long is the term of the debt? Can you pay extra to reduce the term? Who do you contact and how when you find you cannot make a repayment? Know Your Assets: How much do you have in superannuation? Do you need to add more? How much is your house/car/investments worth today? Do you know when to sell/buy assets? Do you have an advisor? Do you know how to care for your assets? Do you know if you are over capitalising? Know Your Expenses How much do you need to live off? What are your power/rates/water/education costs per month/year/pay period? What are your grocery costs? Can you afford this long term? Is your lifestyle sustainable? In an emergency who do you contact if you cannot pay a bill/need food parcels etc? Know Your Income What do you earn per fortnight/month/year? Is your income reliable? Can you increase it? Does it stop over holidays etc? Are you expecting a break in income e.g. maternity leave/retrenchment? Know Yourself! Are you healthy? Do you care for parents/children? Do you need financial help/advice? Are you close to retiring? Do you spend excessively? Knowing these things in advance of an emergency can save you large sums of money - and should that emergency never come, at least you can see where you need to cut back to improve your knowledge and plan for your future. It really is that simple!
Posted on: Fri, 25 Apr 2014 23:20:06 +0000
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