America seems to have a high ignorance when it comes to personal finance. In this article, you will learn some basic financial concepts that will help you get the most from your money. You will learn to stretch your buck and how to make more using other avenues.
Do not deal with a broker you cannot trust. Check their references and listen to what they say to judge their honesty. Tailor your broker choice to your experience level, as well.
Keeping a written notebook on your daily expenses can be a real eye-opener into where your money is going. However, if you put this into a notebook that you can just shut and put away until you deal with it later, you may find it just gets ignored. This is why you should install a white board into your bedroom, kitchen, or even your office so that you can write out your expenses. Since the notes will be constantly visible to you, you will stay aware of your fiances.
Always have an envelope with you. Keep all your business cards and receipts securely stored in this envelope. If you ever need to refer to them for future reference, you’ll know immediately where they are. It’s useful to have your receipts if you ever see double charges for a purchase on your credit card statement.
The majority of new products include a 90-day, or even 1-year, warranty, as it is; if the item is apt to malfunction, it will likely do so during that same time frame. Extended warranties only serve to profit the company you bought them from.
Avoid debt whenever you can. Granted, there are certain debts that are necessary. However, there is rarely suitable justification for using a credit card to make daily purchases. Borrowing less means you have less money to pay towards fees and interest.
Credit Cards
Make sure that you are using between two and four credit cards to bring up your credit score. Using a single credit card will delay the process of building your credit, while having a large amount of credit cards can be a potential indicator of poor financial management. Start off with just two different credit accounts and add new ones if and when necessary.
Use multiple credit cards instead of maxing out one. The payments on two smaller balances can be lower than trying to pay off a card that has reached its limit. That will not hurt your credit as much, and may even help it, as long as you can wisely manage both cards.
By having a savings account that you deposit into regularly, you will be building financial stability. The savings money should only be used for emergencies, college costs or major expenses, like a down payment on a house. No matter how small your monthly contribution is, it adds up and is worth the effort.
If you wish to have a credit card and are under 21, you need to realize that the rules changed. In the past, cards were given to college age students freely. Currently, you will need to prove that you have a source of income or have someone cosign with you instead. Make sure you’re well aware of what a card requires before you apply.
Knowing what possessions a person has, and their real value, can prevent those items from being sold unknowingly at a garage sale for 25 cents, or making their way to the Goodwill. It can be a huge boon to your budget if you find out that your old table or chair is worth a few hundred or thousand dollars.
Anyone finding that they often have single dollar bills in their pockets can use those bills in an interesting way that might be a great help to their finances. If the dollars are used to buy scratch-off lottery tickets, there is a possibility to win more than is spent.
If you have any old laptops lying around, you can generate extra cash and supplement your income. If it’s working or it can be fixed then it can go for a little more money than broken ones do. Sometimes, you can get rewards, such as free gas, for selling broken laptops.
You’ll find that your FICO score is heavily affected by the amount of money you are carrying on your credit cards. Higher balances will negatively impact your credit score. Your score will go up as the balance goes down. Do your best to keep your balance below the maximum credit limit by 20% or less.
Try not to waste money on unnecessary purchases. Save any excess money, and try to get interest on these savings.
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