How To Be More Financially Stable?Filed under: Business Services;
Whether you are out buying your morning coffee or simply celebrating a recent pay rise with a well-earned shopping spree, money makes it all happen. “Money can’t buy happiness”, they say; but money can certainly make your life a whole lot easier.
With fluctuating economic conditions, and job security and standard of living becoming increasingly difficult to maintain, it is no wonder that many people today are not financially stable. They are either tied up in mortgages as a result of loans from licensed mortgage lenders in Singapore, or severely in debt to friends, family, or their landlord. It seems that each person has their own issues with finance, and only a very few are financially secure, if at all.
How can one change this? With a few clever habits, one can possibly turn one’s life into a financially stable one.
Managing your savings
Savings are undoubtedly one of the best ways to accumulate wealth. However, you should make smart saving decisions to ensure that your accumulated wealth gains more value as time passes by, without it just sitting in your bank account. One of the best ways would be to direct your savings towards a life insurance policy. Not only would this give your life insurance coverage, it would also, depending on the territory, exempt the returns you receive from taxes. This tax advantage is an immense benefit when attempting to accumulate wealth. One can even take this return received each year from the insurance policy, and invest a portion of it in another insurance policy; thereby receiving more returns at a zero tax rate.
Choosing loans wisely
Sometimes, taking a loan may be unavoidable. It could be a start-up business loan that helps launch your business prowess and career, as well as your dreams, forward, and yet is required.
For such instances where loans remain necessary, it is absolutely crucial to do your research regarding those that give out such loans. It is best to approach a reputed institution with many years of experience in the field. You should not let yourself be fooled by unbelievably low rates from obscure companies; it is best to accommodate a slightly higher interest rate if it means that your loan is taken from an extremely secure and reliable source.
Although credit cards are a modern phenomenon that many cannot seem to live without nowadays, it is also severely crippling in terms of debt accumulation.
Choosing to minimise credit card use, and opting to pay with cash upfront will enable you to only incur the actual cost of a good or service, without the additional credit interest cost.