Money Management

Vital financial tips for the financial poor – How you can be successful

Usually December is that time of the year when most people reflect on their past year’s mistakes and wonder what they can do differently in order to be successful in the coming year. But that doesn’t mean that you can’t ponder over your mistakes in the middle of a year. As we have passed through the first 3 months of 2015, there is still time to make some of the best financial decisions so as to emerge successful in this year. Wouldn’t it be great for you if you could get some of the expert advice from the financial experts who could just tell you what steps you have to follow? The concerns of this article will deal with some vital advice given by some of the best personal financial experts who have given their answers to the question, “What can Americans do in order to set themselves in the right path for achieving financial success?”

The answers of some of the most popular financial analysts

  1. Put an end to playing the role of a victim: Although the job market has improved than before, Americans still view themselves as victims of the job market and this is nothing but a negative tendency to continue playing the role of a victim. They even see themselves as victims to the sluggish economy and the uncertain future of programs like Medicare and Social Security. As per a successful entrepreneur named Robert Kiyosaki, this kind of mindset can have an adverse effect on your mind and prevent you from taking control of your finances. If you can’t find a job, challenge yourself and create a place for yourself.
  2. Save more and spend less: Apart from taking any other step, if you’re just trying to save more money throughout 2015, get back to the basics as it all comes down to the basic financial mantra of saving more and spending less. But this definitely doesn’t mean cutting down your expenses into half and living like a miser, it just means spending according to a frugal budget. It is not only the big savings that matters. First change your mindset and know that no savings small for you and it is the small savings that add up to create big savings fund.
  3. Look for ways to increase your income: One of the best and the most effective ways of boosting the chances of your financial success is by looking for ways to grow your income. It all depends on you to give yourself a rise that you’re worth in 2015. This might even mean mustering up the courage to speak up with your boss and ask him for a raise or starting a new business or looking for even a part-time job. Whatever you do, make sure it adds at least 5% of your entire income.
  4. Trigger off your high interest debts: When Dave Ramsey was asked for his advice for the financial poor who are looking for ways to become successful in 2015, he simply answered, “Pay off your debts”. According to Dave Ramsey’s financial philosophy, living without debts is the only way in which you can be financially successful. Make it a priority to repay all your outstanding debt in 2015 so that you can start off this year with a fresh new slate. If required, you can take help of a debt consolidation company that can help you with an alternative repayment plan.
  5. Set realistic financial goals: This is not an out-of-the-box advice but still there are so many Americans who don’t follow it. A personal finance journalist recommends people to be as specific and realistic as possible while setting your personal financial goals. If you’re planning to buy a home, don’t have any vague goal of saving an amount for down payment that you can’t end up saving. Instead some practical goal will work out in a better way. Try saving $250 every month which can be done by curbing your monthly expenses. Transfer this amount from your checking account to your savings account and don’t withdraw funds unless you reach your desired goal.
  6. Open a 401(k) or a Roth IRA: A senior financial correspondent says that if there is anything that you can do in order to change your fiscal situation, it is to save money in your Roth IRA accounts. Irrespective of which tax bracket you fall in, keep saving money in a Roth IRA and a 401(k). If your employer matches a contribution, it is even better for you and even if he doesn’t, you should still keep saving.

Therefore, when you’re someone who is planning to remain successful in 2015, both financially and physically, try to stay fit. Follow the effective strategies mentioned above to keep away from debts and stay on top of your finances.

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