By Anonymous • March 28, 2022•Issues, Balancing Private and Professional Life
We all dream of owning a house we can call our home. Thanks to the many mortgages available today, buying a home is now made easy and affordable. While owning a property is very much rewarding, all good things come with a price. Yes, there are certain benefits one can get from owning a house. But the downside is, you get to have a whole load of brand new responsibilities, one of it being the financial hurdles.
Not only do you need to pay your monthly bills and utilities, but you're also in charge of your home's maintenance and repair. On top of your other financial responsibilities, you would also need to consider other expenses and debts such as your monthly mortgage rates, etc If you used a home loan to purchase your home. It may seem overwhelming and hard, but with the right attitude and good financial management, it's not impossible to achieve financial security and success.
Here are the must-know financial rules cited by Newark Group Japan to know when it comes to managing your finances.
Start saving ASAP by treating it as an expense
One of the best ways to save money is by treating your savings as part of your expenses. This way, you can establish a routine wherein every time you receive your income, a portion will go straight to your savings account. Rather than putting aside what is left on your salary, it's best to set aside at least 20% of your monthly income for your savings.
Set up an emergency fund that's separate from your savings account
Separating your emergency funds from your savings is a wise move for every homeowner. You'd want to establish an emergency fund that is at least three to six months worth of all your living expenses. This way, you'll have an account to rely on in cases of emergency, and you won't need to tap on your savings account or even apply for a loan to cover emergency expenses.
Monitor utility usage and bills
A bigger home with lots of appliances used regularly usually leads to utility bills that are much higher than what you used to pay for while renting. So, make sure to monitor your usage, refrain from using energy and water when not necessary and see how much are your usual utility bills. This way, you can budget the cost way ahead of time.
Keep tabs of your expenses by keeping all receipts
The best way to check your monthly expenditures is by keeping all of the receipts you got for the whole month. Write down all costs so you can review your spendings and make sure you don't overspend on unnecessary things.
Assess your lifestyle and make changes to live within your means
Your lifestyle has a direct impact on your expenses, which means your fiscal responsibilities can increase or decrease depending on the way you live. Make sure to reassess your finances and make necessary changes if and when possible and necessary. It would be best only to buy what you really need and can afford. Always be practical and find ways to lower your bills and expenses. You may want that newly released car from your favorite brand, but if it won't make your tasks easier, your life better and your finances happier, then it's not worth it.
Good Read: How to Successfully Live Within Your Means
Pay with cash as much as possible
When it comes to buying and spending, it would be best to pay with cash rather than swipe and use your debit or credit cards. Most people don't realize that whenever you use your cards to pay for something, you end up spending much more than what you need and can afford. When you pay with cash, you can easily see whether or not you still have enough to last the month, and you'll get better at managing your spendings.
Manage your checking accounts responsibly
Checks are an excellent way to pay for utilities, services, and products. While it may seem like an “I owe you” note and an old-school way of making payments, checks are still widely used because of the convenience it has to offer.
While internet banking may be the fastest and most convenient way to send and receive money, checks are still most preferred by many, especially businesses. For one, if you know how to write a check and use one, you can postpone withdrawals, avoid cancellations and send money to individuals with no bank accounts and because checks are permanent bank records, you can use them for a number of reasons. Just make sure you know how to write a check the right way and that you have enough balance to cover for your spendings to avoid hassles.
Pay debts on time and in full when necessary
The road to financial security and freedom is not easy, but never impossible. One of your stepping stones would be paying your dues on time. It would also be best to pay your credit card dues in full when possible. Also, avoid applying for new credits and major expenses you don't need. As for mortgages, make sure to pay your monthly fees. This way, you can achieve a better credit score and reap the rewards that come with having a good credit report.
Know that you need home insurance
There are tons of insurances available in the market. From health insurances to car insurances. You can even apply for visitor's insurance nowadays. For homeowners, it is important to note that you need good home insurance and you must regularly pay for many good reasons. One, natural disasters and man-made risks can cause a lot of damage and hundreds or even thousands of dollars in cost. You or a third party may need protection, and home insurance can take care of it for you.
Expect unexpected expenses
Being a homeowner means you'll also need to be financially ready for repairs and maintenance. So, make sure to set aside a budget for this so you won't break your bank when the need for repairs and maintenance arises.
Lastly, Invest wisely
There are lots of good ways to invest your money. There's the stock market where you can invest and grow your money. You can also go for US Treasury Securities, collectibles, precious metals or even buy properties or start a business. Just make sure that you do diligent research before investing and not to put everything in one basket to mitigate risks or better yet, consult with the experts from Newark Group Japan.
Newark Group Japan Investment Strategies That Works
Investment recommendations come from a variety of sources. If you're old enough to remember watching commercials for “hot stock tips” on late night television, you know that anyone can sell investment advice. Because people are always looking for an edge, there will always be people who promise to give it to them.
The problem is that it's hard to verify the credibility of someone offering financial advice. It's easy to buy a television commercial or create a website, but proving your investment recommendations are actually any good is difficult, if not impossible. This is why having a trustworthy financial advisor is so valuable.
When you meet with a financial advisor at Newark Group Japan, you'll be working with someone who can prove their credentials and provide information about their experience. You'll know exactly what qualifications they have before they start offering investment recommendations.