Credit Paid – What’s Next?Uncategorized
You have done it! You’ve worked, stolen, saved and paid off all your credit. You can congratulate yourself for joining an elite club whose members have finally seen the light at the end of the tunnel and have done something about it. But what to do now that you can finally turn over a new page? Will you go to Disneyland or treat yourself to a treat? Pag, for a second. You are about to start a new chapter in your financial life, so it’s time to set new goals. So what are you going to do now that you’ve finally got rid of all your debt?
Financial experts believe the three keys to financial health are debt-free, emergency cash savings and a plan for retirement living. You’ve got the first one, but now it’s time to start focusing on the future.
The easiest way to make an emergency reserve is to determine how much you spend each month to “stay afloat”. This calculation should include, for example, mortgage, utilities, food, fuel and all that you can’t do for 30 days. Multiply the result by six. This is the minimum amount of money that should be in your bank account to cover unexpected situations such as losing your job or falling ill. Now, more and more financial experts are telling their clients that six-month emergency expenses are what they need to accumulate to financially protect themselves in times of crisis, so the more savings, the more secure you can feel. It is also imperative to draw up a budget plan that is already well known and can also help you survive a crisis.
Because this type of savings is simple even when you are in debt, when you are out of debt, you naturally have excess income that you can use just as it comes to mind. However, instead of spending the excess money on things you don’t need, start accumulating them in a traditional bank account or online savings account. In other words, the funds that were channeled into interest-free loan payments every month can now be redirected to savings. In this case, you’ll never run out of money and unless you’re like most people, these savings will help you reach your goals in a year or less. If your monthly savings are not as significant as you would like them to be, try to increase them over time, but under no circumstances should you reduce them or give up this investment. Remember that slow and steady wins.
When it comes to making old age savings, we can’t talk about traditional bank accounts. Thanks to the friendly state pension system, pension funds allow you to earn more money later than saving money in a poor bank account, making you feel financially more secure when you reach retirement age. Our pension is already being formed automatically at the 1st pillar and voluntarily at the 2nd and 3rd pillar. Apart from pension funds, there are other ways to financially secure your old age. For example, many employers offer retirement plans to their employees, which, in addition to the mandatory state-funded resources, provide them with additional resources when they retire. You could say that there is actually, if you can say, the opportunity to make free money because it costs you, as an employee, nothing. Of course, there are other special ways to save for old age – if you have it, ask about it, but remember to do it in time, but it’s never too late to start!
All of the above goals are big, but in the same way you can save on some smaller goals like tuition fees or travel. After you have settled your debt obligations, you definitely need to reschedule your financial goals, which can take a year or even longer, but keep in mind that planning them is the foundation of a secure and stable financial future.