Financial Intelligence is for Everyone
There are two types of people in this world: spenders and savers. Modern society has divided people up, and those who fall into the spender category are left to believe that they have done something wrong, while those in the saver category are often described as cheap or stingy. The truth is, both sides have their merits, and both sides could learn a thing or two about how to be financially savvy.
Here are the 4 easiest ways you can get your finances on track, and you can be seen as someone that has a high financial intelligence. In the long run you’ll be glad you employed these practices.
Spend Less on Your Mortgage
Here at Big Sky Homes, we are all about getting people into affordable housing. Naturally we will begin our tips with the best ways to afford your mortgage!
At the current time (the middle of 2016) interest rates are still incredibly low. You can get locked into a 30 year fixed rate mortgage for about 4% (depending on your credit score). What that doesn’t mean is that you should run out and buy a bigger or more expensive house!
Instead, determine what you can actually afford to spend on housing (remember, it’s more than just the mortgage payment), and then buy a home from us that is considerably less than what you can afford. You will have more money at the end of the month, and you will be able to complete the next three tips and be on your way to being financially savvy.
Save Money for Emergencies and Opportunities
If you have read anything about finances, you have probably read about having an emergency fund. What those personal finance gurus have failed to tell you is that the emergency part of the fund is only half of it! You want those savings for opportunities as well.
Let’s suppose you have saved for emergencies and opportunities. A great investment opportunity comes along and after doing your due diligence you determine that it is indeed a great investment opportunity. Do you have the money to invest? Or is it all tied up in equity in your home, in retirement accounts, in emergency funds, or non-existent?
Having an emergency AND opportunity fund will let you experience life to the fullest (and it’s not just investments. It could mean a last-minute vacation to enjoy life!).
Maximize Your Retirement Fund
It is estimated that a full third of Americans have absolutely nothing saved for retirement. Did you know that Social Security was only designed to meet your basic needs? That means even if it is still around, it’s only going to cover rent on a dumpy apartment and simple meals.
Make the most of your retirement fund (if offered through work)! Start with whatever will get you the employer match (usually 3%). Each year increase that by 1%. With your annual raises, and getting used to living on what you make, you likely won’t even notice. But you sure will when you have money to live on during retirement.
Don’t Complain, Change Something!
How many times have you, or your friends, complained about not having enough money? After complaining, how many times have you, or your friends, actually done something to change their income? Most likely the complaints are many, the actions are few.
Instead of just complaining, do something! Determine what you are good at, and start offering it as a side service. There are literally thousands of articles and websites out there that will show you almost exactly what you need to do to earn money on the side. Get started today, so you never have to pass on a night out because you “don’t have any money.”
Big Sky Homes Helps You to be Financially Savvy
We don’t offer 401(k) plans, or emergency funds. But we do offer is affordable housing options. Our state-of-the-art modular homes are designed to be energy efficient, modern, and easy on the pocket book. You get a brand new home, with lower utility costs, and your mortgage is kept to a minimum. Now you have the extra money you need to bolster your emergency fund and to bump up your 401(k).
If you still need extra money, well, that’s up to you to make something happen. Whatever you do, be financially savvy.