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15 Financial Advice You Must Know Before It’s Too Late

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If you are in your 20s, you are not in a position where you can make serious financial decisions. But while turning 30, it is necessarily important that you have attained an age where you are considered mature in the decisions that you take. There are people who will consider this age group as reaching a milestone where you start to think about getting married and starting a family. These things can be done when you have your finances sorted out, when this is done rightly you are actually making your future safe.

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Here are 15 financial advice before it’s too late.

1. Having an emergency fund

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You should know life is unpredictable. No matter how much prepared you are, some will go wrong and you will need money to fix that. There are chances that your car has some technical issue or you have some medical issues or your dog requires a medical checkup. So, it is always better to start saving. It is always better to have easy access to emergency funds (liquid cash) that will surely come handy. If you are having emergency funds, then start having it with £1000 goal.

2. Handle the debt
Having a debt is quite common, so don’t be upset about it. Seven out of 10 students tend to have debt when they complete their graduation. The majority of the people have credit card debts or they have to go for payday loans. The negative side of these is that they have huge interest rates. The average credit card interest is 15%. According to the current financial mechanisms, it is quite hard for the poor people to get out of debt. The best thing you can do is to start by paying off the smallest debt amount then pay the next smallest debt amount.

3. Spread out your income
If you are serious about savings and want to get rid of debt, you should have more than one form of income. You can have a look at the side hustles that are cost-effective and easy. Choose any one of them that suits you. Give some gap, conduct an analysis and leave aside the side hustles that are not proving lucrative to you. Your focus should be on the ones that are proving beneficial to you.

4. Learn to save

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One of the best ways to save money is to get a hike in your income. You can choose a new job or you can opt for part-time job as well. It is important that you are insured against illness and sudden death. You can consult a good financial adviser to have a competitive insurance.

5. Planning for retirement
When you are at your retirement age, make sure that you reassess your debts and outgoings. It is advisable to join your pension scheme. When we talk about investments, you should think of long-term.

6. Saving or investing money
Saving is keeping money aside gradually in order to make a lump sum. Commonly, money is always saved in order to achieve a specific goal, like purchasing a car or buying a house or for any kind of future emergencies. Investing is committing capital or money in an effort with an anticipation of gaining profit or extra income. When it comes to savings, it is imperative that you are aware of your goals in order to make a decision whether you should invest or not. Particularly, you should know which of your goals are for short term and which are for the long term. When we talk about short term goals, you plan things that you will do within a span of five years. Medium term goals are the things which are planned to be done within a span of 5-10 years and long term goals suggest that you won’t need the money for more than ten years.

7. Buying a property or taking out a mortgage
When you are planning to take out a mortgage, the lender and the brokers will assess how much mortgage repayments you can make. This will also include your current salary and debt repayments along with varied outgoings.

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Before you plan to buy a property, it is important that you save a minimum of 5% to 20% of the cost of the property that you are planning to buy. So, if the property is costing £150,000, the amount that you need to save is around £7,500. When you are able to save more than five per cent, you will be in a better position to apply for cheaper mortgages. You can also gain holistic information about property loans and other related guidance from RBS Bank, all you need is to give a call at RBS contact number. You can be rest assured that you will have the information that will prove helpful.

8. Improving the credit score
Talking about credit can be quite tedious, but on the positive side, it does make a difference in our lives. We all know that it is with credit that we get to purchase the biggest expenses. Therefore, you have to start ensuring that you do take care of it as it does have relevancy in our lives. You have to be aware if you really want to make a difference in your credit score. Make sure that you have your credit report on a yearly basis and find out what are the elements that are affecting your score. You should choose to address them now if you want to save thousands in the future.

9. Keep a track of your progress
The amount of money and how much do you spend does not makes any difference. Make a habit of tracking your net worth on monthly basis. This will give you a better idea of investment to taxes and income to expenses. Follow this approach, this will surely help you in making a great difference in your finances.

10. Taking advice
The majority of the people doesn’t realise the fact that they are following the same fiscal patterns that once their parents used to follow. They prefer consulting their friends who are themselves not doing well as far as the finances are concerned. Why would you ask someone who is not in a position or have achieved the results that you want. Instead, you can seek the services of a financial adviser who will help you in evaluating investments and managing investments, guide you about the protection of your assets, assist in setting a budget and much more.

11. Being realistic
It happens with us all the time. Every human being has emotions and most of us take decision which is, most of the times, based on emotions. Well, such things cannot be controlled, but you can change the way you feel about money so that you get more confident about the whole investment thing.

12. Creating a budget
If you haven’t set up budget, then you won’t be able to reach your targets which are – paying credit card debt. You can take the assistance of a good financial adviser who can help you in building a budget.

13. Handling complexities
Most of the people are of the view that they will save more for the retirement when they will earn more. But, in reality as and when they start to earn more they face an increasing number of responsibilities as well, such as buying a home, then getting married, after having kids they have to save for their college. So, don’t delay for tomorrow and start saving today.

14. Don’t compare yourself with others
If you have a friend who dresses up smartly, chances are that he might be in deep debt, he might enjoy family money or he might be nearing foreclosure. So, make sure that you don’t compare yourself to the people.

15. Salary negotiations

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There is no denying that, if you are spending less and you are more concerned about saving more, it will prove beneficial for you.

But, increasing your income is one of the best & effective ways to enjoy financial freedom. So, you have to ensure that you are earning what you are actually worth.

Conclusion
Make sure that you educate yourself as this is the best reply that you can give to mistrust and scepticism. You should look for the sources from where you can have utmost information and try to have the guidance of a good financial adviser.

Guest Author: Lissa Coffey

Lissa Coffey is a freelance writer by profession (currently writes for Qwikfix) with a passion for writing on latest innovations and other interesting ideas. She is an active member and contributor at some of the reputed tech magazines & communities.

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