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Importance of Maintaining #PersonalFinances

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  • Importance of Maintaining #PersonalFinances

    #Howto #succeed in #financialplanning for #retirement -

    A majority of young people tend to be irresponsible with finances in their youth. They possibly spend most of their finances (before walking away with 5 cents left in their pocket as life savings in the moment) on fashion, cars, restaurants, footwear, and other unnecessary things. Very little do most young people know the youthful energy they possess in the moment will not last a lifetime. Sooner or later, they will tire in energy and desire to retire, uncertain if they'll be eligible for retirement or have to seek a side job to supplement their income. Irresponsible youthful thinking in the moment and not saving money for later causes most young and middle aged folk to have an unstable financial foundation to rely on.

    Maintaining personal finances is essential to a healthy retirement. An unwritten rule to having immediate and lump sums of money on hand after retirement (in addition to having money automatically deducted from your paycheck for retirement) is setting up an additional bank account to have small sums of additional monies deducted from your paycheck automatically deposited into that account. Be mindful to have a giving heart and give away any interest earned on that account to the needy or a charitable foundation. This is true transformation of the heart. Yes, you are encouraged to give away the interest earned on the account to someone in need for a charity because it’s good for the heart give unto others. Give and it shall be given unto you. The reason for setting up an additional account to have small sums of money deposited is for the reason of not having more money on hand after you retire, but also having emergency funds immediately available in the event something should happen such as medical bills, paying an extra mortgage note, paying for your children or grandchildren’s college tuition, and so on.

    Personal-finance maintenance builds discipline. It’s easy to have large sums of money in your hand and spend it up like there’s no tomorrow. What if someone gave you $1 million in cash. How fast could you spend the money in the moment? Would you go down to the Mercedes-Benz dealership or purchase that Jaguar, Rolls Royce or Ferrari you always dreamed of? Would you head down to your local realtor to look at that $350,000 or half $1 million home and purchase it on the spot? Or would you hold onto the money and create a temporary annual salary of $30,000 to live on while seeking legitimate ways to grow the remaining half of $1 million?

    A disciplined mind would take the lesser traveled route, do the transformation work of staying humble with the money, and live on the annual salary of $30,000, not delving into the pleasures of owning luxury items, seeking unique ways to roll the money into mega millions. Such ways to grow the money and have financial discipline in the process include real estate investing, starting a consulting firm, selling consumer electronics, starting a hardware business, and so on. The importance of financial discipline is having a long-term vision where you desire to be financially and working diligently toward achieving goals goals, with the understanding that the money you have today is not guaranteed to have in the future. This is part of what separates the haves from the have-nots.

    'Old School Style Pension-Retirement'

    Back in the day, the only way most people knew “formal civil service employees” how to save money for retirement was to have small sums of money deducted from their biweekly paychecks. Back then, you worked until you were either 55 or 62, collecting Social Security starting at age 62. This was the only form of retirement for many. Today, we have virtually unlimited options for planning a financially healthy retirement. It’s easy for anyone to turn on their computer or television set and tune in to Bloomberg television to gain free information on the topic of retirement planning. Bloomberg TV shares a plethora of priceless financial information designed to educate anyone how to make better financial choices in personal finance management.

    Tune into Bloomberg TV or take some spare time to read information on the Bloomberg website about better management of personal finances. We live in the information age where no one should feel left in the dark concerning financial education. You'll acquire great knowledge reading the website about finance management. Take time to learn "it's the best investment in self," and you’ll be surprised how your way of thinking can financially change your life for the better. Don’t spend money in the moment because you have it. Save and live merry on “just a little,” and you’ll always be ok.