Managing your money more effectively

culled from:businessdayonline.com

Taking time to u n d e r s t a n d your money life is very important for effective financial planning.

Not only does it help you cut cost, it helps you get better value on your spending. Here are some financial tips for effective financial planning.

Assess your need for life insurance coverage. If your children are now on their own, or if your spouse works, you may not need as much life insurance protection. The annual premiums on a term life policy would typically fully fund an emergency savings account.
Live relatively near your workplace. While this isn’t always possible, driving 5,000 miles less a year can lower transportation costs by more than N50,000- N100,000 depending on the car you drive.
Find the lowest-cost place to purchase prescription drugs. Make sure to check out not only your local pharmacist but also local supermarkets, area discount centres, and mail-order pharmacies.
Use only the ATMs of your bank or credit union. Using the ATM of another financial institution once a week could well cost you N300 a withdrawal, or more than N15,000 over the course of a year.
Weatherproof your home. Caulk holes and cracks that let warm air escape in the winter and cold air escape in the summer. Your local hardware store has materials, and quite possibly useful advice, about inexpensively stopping unwanted heat or cooling loss.
Access clothing in terms of quality as well as price. An inexpensive shirt or coat is a poor bargain if it wears out in less than a year. Consider fabric, stitching, washability, and other quality related factors in your selection of clothes.