Having financial stability means having a sense of security and being able to manage your daily expenses. Being aware that you have sufficient funds to cover your bills and handle unforeseen circumstances can give you a sense of assurance for what lies ahead.
Having a budget is a wise decision when it comes to creating a personal financial plan.
A spending plan for your money is known as a budget. It keeps track of your income and expenses for a specific timeframe. By monitoring your spending habits, a budget can provide a sense of calmness and assurance regarding your personal financial situation.
Are you aware of the amount of money that you receive regularly? If your income fluctuates each month, calculate the average over the past 3 months. Keep yourself informed with mobile banking – the HSBC Vietnam app enables you to conveniently monitor your transactions from anywhere.
After reviewing your bank statements from the past three months, calculate your average monthly expenditures. Remember to account for any cash transactions that may not be reflected in your transaction records. By comparing your earnings and spending in this manner, you can determine if you are living within your means or have extra funds available.
Establishing precise financial objectives can provide a more defined vision of your desired financial state in the near, mid, and distant future. To refine your goals, consider asking yourself the following inquiry:
If you have a certain amount you want to save, our savings goal calculator can help you determine the time needed to achieve your target.
Finally, discuss your financial objectives with your loved ones as they can serve as a source of encouragement during challenging times.
After establishing your short and long-term objectives, it is beneficial to explore various personal financial plans. For instance, you can follow the 50/30/20 rule budget plan where you allocate 50% of your earnings towards necessary living expenses, 30% towards discretionary spending, and 20% towards savings or debt repayment. In his book, “Secrets of a Millionaire Mind”, T. Harv Eker introduces the ‘6 Jars money management system’, which involves dividing your income into six different categories, including education and donations.
It is important to regularly review your personal financial management plan. As your income and expenses may vary, it may be necessary to make changes to your budget or financial objectives. It is crucial to ensure that your goals are still in line with your present financial status. If not, it is recommended to make necessary adjustments.
It is crucial to establish positive financial practices at an early age in order to allow your money more time to increase in value.
Putting your funds into a savings account may have less risk involved, but choosing to invest can potentially generate higher profits. Nevertheless, these profits are not definite. Due to the possibility of market fluctuations, it is possible that you may receive a lower amount than what you initially invested, or you may see an increase in your funds.
Are you looking to increase the effectiveness of your money? Begin by implementing minor adjustments and developing new routines. For instance, if you purchase a coffee for VND25,700, consider rounding up the amount and depositing the extra VND300 into your savings account.
One could also:
Ensure that you have saved enough money for emergencies to cover three months’ worth of essential expenses. This could serve as a safety net to avoid resorting to borrowing or depleting your savings in urgent situations.
To gain further understanding, check out: 8 obstacles to assist in your money-saving journey.
The personal financial management plan that you create will be based on your priorities and may consist of a combination of saving and investing. It is crucial to select investments that align with your risk tolerance.
There are various forms of investments, including:
The HSBC Time Deposit is a savings account that earns interest after a predetermined period of time, ranging from 1 week to 36 months. However, if you withdraw your funds before the deposit matures, you will not receive any interest. The HSBC Step-up Time Deposit offers more flexibility with its withdrawal options, making it a more suitable option if there is a possibility that you may need to access your funds earlier.
For numerous individuals, managing debt can present a difficult task. The initial step involves evaluating the amount of money you owe. This approach will simplify the process of determining which debts to address first and devising a plan for repayment.
If you find it challenging to stay on top of your financial obligations, you might feel inclined to disregard them. However, accumulated bills can become overwhelming to handle. Here are five actions you can take to effectively manage your payments.
By being mindful of your spending habits, you can effectively save money. Additionally, you have the option to:
Establish a Direct Debit for effortless bill payments from your Vietnamese dong bank account. You can utilize your HSBC Credit Card, Current or Savings Account to settle your bills through various means such as utilities, cable TV, internet, phone, and other services. There is no fee for using HSBC Online Banking or the HSBC Vietnam mobile banking app to make bill payments.
To avoid missing a payment, be sure to check the due dates for your bills. For instance, in Vietnam, electricity and water bills are due at the end of each month. Simplify your payments by setting up autopay and eliminate one more thing to stress about.
Using budget planning tools is an effective method for monitoring expenses. The mobile app from HSBC Vietnam enables you to review recent banking transactions and bill payments. Additionally, if you have established AutoPay, we will send you email notifications once the bill payments have been processed.
Find the method that suits you best. The objective is to regularly update and adhere to it in order to efficiently handle your bills.
Discover more about: Ways to pay your HSBC credit card bill
Creating a practical debt repayment plan that is feasible for you to adhere to can also be more manageable. You may want to explore one of three possible strategies.
The HSBC Spend Instalment feature enables customers to divide their HSBC Credit Card bill into smaller payments over a period of 12 months, without incurring any interest fees. While longer repayment options of 24 or 36 months are available, they will result in monthly interest charges.
A Personal Instalment Loan is a versatile option for financing various expenses. Instead of managing multiple loans, you may opt for a personal instalment loan with a lower interest rate. Our HSBC unsecured loans follow the reducing rate method for calculating interest. This means that as you make payments, the principal amount gradually increases while the interest amount decreases on a monthly basis. For more details on how to calculate interest rates for loans, refer to our guide on unsecured loans.
If you require additional credit from your bank account, a Secured Overdraft can provide you with the necessary funds. It is important to note that this loan should only be utilized as a temporary solution in order to avoid incurring fees for exceeding your account limit.
To successfully manage your debt, it is important to determine your monthly repayment capacity for each approach. However, it is crucial to always meet the minimum payment requirement for all your outstanding debts, regardless of the chosen method.
Retiring in a financially stable state requires careful planning. By adequately preparing, one can have a sense of assurance about their future.
To understand your financial goals, it can be beneficial to pose a series of inquiries to yourself.
Take note of these and periodically review them to stay on course.
When it comes to determining the necessary funds for retirement, it can be challenging to accurately predict the exact amount. Therefore, it is crucial to begin contemplating these matters early on.
Go over your retirement checklist and establish both short and long-term savings objectives. If your aim is to have your mortgage fully paid off by the time you retire, utilize a Home Loan Calculator to determine the monthly payment needed to reach that goal. Take into account the option of investing your funds to increase your wealth in the long run.
The protection needs for various life goals can vary. While you may currently believe that insurance is not necessary due to your age, it is important to consider the future when you or your loved ones may require it.
It is important to prioritize your well-being in order to have a fulfilling retirement. A reliable healthcare policy can ensure the safety of both you and your loved ones. HSBC provides a variety of five Medical Care Insurance options with extensive coverage of up to VND3 billion.
When making a decision about life insurance, it is important to determine the appropriate amount of coverage. Seeking guidance from an insurance expert can aid in selecting a suitable plan based on your current life stage and financial resources. With the HSBC Good Life 2.0 Insurance, you have the ability to adjust your policy as necessary.
Legacy planning involves making decisions on how to transfer your assets and estate to your loved ones. In the case of not having a will or an illegal will, the inheritance law of Vietnam will come into effect. This means that your estate will be distributed based on the hierarchy of inheritors, rather than your desired distribution. By engaging in financial planning at an early stage, you can safeguard your achievements and maintain your legacy.
Original Text:
There are many different ways to cook chicken, including baking, grilling, and frying. Each method has its own unique benefits and drawbacks, and the choice of cooking method often depends on personal preference and the desired flavor and texture of the chicken.
Paraphrased Text:
Chicken can be prepared in various ways, such as baking, grilling, and frying. Each technique has its own advantages and disadvantages, and the decision on how to cook the chicken usually relies on individual taste and the preferred taste and consistency of the chicken.
Thao Pham