Seven steps you can take to financial success

Seven steps you can take to financial success

High inflation has squeezed the finances of many, leading to higher spending on everything from food and family needs to travel.

How do we overcome our financial problems? Personal finance expert Farnoush Trabi provided seven tips for financial success in a discussion with Morningstar.

1. Prioritize your savings

This means savings is not just “the thing you do at the end of the month if there’s anything left,” Turabi said. Automatic savings for everything you can will help, say 5% to 10% of each paycheck. There are apps you can use for this. The smart app will “connect to your checking account and see how your cash flow is working,” she said. The app may also send text suggestions for one-time contributions to your savings when cash flow looks good.

2. With high inflation, ask for financial help

โ€œBeing your own financial advocate is really important, whether you’re talking at work or with your billers,โ€ Al-Turabi said. At work, she said, it could mean asking for a raise or looking for a higher-paying job. โ€œOne of the bright spots in the economy right now is [strong] Labor market “.

3. Make billing dates fit your personal financial lifestyle

You can ask your creditors to adjust the date of your monthly payments to match your cash flow. “If all your bills are due on the 15th of the month, that’s tough no matter who you are,” Al-Turabi said. “Sometimes you can go to the website and change the bill due date.”

4. Do not discount the power of discount shopping

This is something you can always do. โ€œNow there is a lot of sales, because retailers are suffering, and supermarkets in particular have a lot of surplus [inventory]Al-Turabi said. “So the research and the shopping pay the price.” You can use the apps to find the best deals.

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5. Spend carefully

“It seems to be a simple exercise,” al-Turabi said. “Of course I only want to spend on things I care about, and we think we do just that.” But al-Turabi said young people who often enter their first job “quickly start collecting bills and then realize that after six months, I have nothing to offer.”

6. Ask yourself about your financial goals, make them meaningful, and don’t forget about retirement

“In the long run, I probably want to make sure I have enough for myself in retirement,” she said. “So, that means you’re contributing to a 401(k).” “Maybe you’d like to buy a house,” Al-Turabi said in the medium term. โ€œBut that’s not for another 10 years. So, maybe you can put a little bit of money into an investment portfolio.โ€

7. Give yourself options for the future

โ€œWho does not want options, and who does not want to have the money to afford those options?โ€ Al-Turabi said. โ€œIt could mean that you work for an employer, but you have so much money of your own that you can quit if you want to, or you can take two years off. You suddenly have that financial license to do whatever you want.โ€

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