Be wary of financial short cuts…
Managing the household finances is never going to be the simplest of tasks. There’s just so much you have to do; so many connected-but-separate thoughts that have to align with one another. You have to have one eye on ensuring you have the funds for right now, one eye on the near-future, and one eye on the distant future– which is tricky, when you only have two eyes to begin with.
As a result, there’s no doubt that sound financial management can give way to shortcuts; comfortable ways of thinking which seem like a good idea. We all have moments when we would rather take a shortcut than go through the laborious process of going the long way, and with so much in our lives competing for attention, is it any surprise that attitudes to household finances tend to trend more towards what’s easy rather than what’s best?
As understandable as this issue may be, there’s also no doubt that the shortcuts are rarely the best choice. Here are three scenarios when it really is worth finding the time to go the long way around.
Investments
Investments are an important part of your overall financial plan, but they’re also deeply, deeply confusing. The investment world is full of terminology, change, and volatility; it’s inevitable that many people feel more confident shying away from complex investments, and instead choosing something easy.
However, the world of investments doesn’t have to be complicated. Within a few days, you can grasp the more complex investments that can show far bigger returns for the money you invest. Use a combination of tools such as TD Ameritrade brokerage and advice from a broker to really see your investment future begin to take shape.
Budgeting
Budgeting is something that everyone knows they should do, but it’s also a time-consuming task. Thankfully, there are a plethora of ways to manage a budget without resorting to shortcuts. For example, there’s a range of apps designed to make budgeting easier, or software that can help you take control of your income and expenditure in ways you had never thought possible. These tools can help you master a budget once and for all, which will provide myriad benefits to your overall financial outlook.
Insurance
Perhaps the worst shortcut in this piece is found in regards to your insurance. Do you receive your renewal notice and just allow your existing insurance policy to continue? If so, then this is a shortcut that is costing you a huge amount of money.
Obtaining and comparing new insurance quotes is easier now than it has ever been before. There are dozens of sites online that can allow you to obtain quotes from a wide range of sources, allowing you to potentially save yourself hundreds of dollars per year. Set aside an afternoon to go through all of your insurance renewals at once; your new budget will thank you for it!
In conclusion
As tempting as shortcuts can be, you can really make the most of your money by going the longer route when it’s justified, as it is with the options above.
