You need not be an expert in finance to get your personal finances under control. With some money management tips and a bit of common sense, you will learn to thrive within your means and to increase your personal wealth as well.
If this is the wrong time for you, you should not sell. If the stock you own is doing well, then let it continue to do well and not sell. You can watch your stocks that aren’t doing as well in the meantime.
You can better understand where your money goes when you write down how much you spend every day. However, if you write it in a notebook that gets closed and set aside until you open it again the next day, it might become a case of “out of sight, out of mind”. A better choice may be writing your purchases on a poster or whiteboard that can be placed in a prominent place to catch your attention daily. This serves a more visible reminder and will help you to stay on track.
If you’re married then you want whichever one of you that has the best credit to apply for loans. If your credit is poor, rebuilt it slowly by using a credit card cautiously and repaying the balance religiously. When you and your spouse both have high credit, it will be possible to get two loans so the debt is distributed.
Spending money on dining out can help one to save money and gain control of their personal finances. Saving money is easier when the ingredients are bought and cooked at home; there is also appreciation for effort taken to create a home-cooked meal.
Frequent Flier
A great way for frequent travelers to be rewarded for their travels is through a frequent flier plan; most airlines offer these programs. Many credit card companies offer rewards made on purchases that can be redeemed for free or discounted air fare. The miles accrued through the frequent flier program can be used for free or discounted hotel rooms.
First time credit card applicants under the age of 21 need to be aware that rules have been changed in the past few years. Once upon a time, credit cards were freely issued to college students. You have to have a cosigner or be able to prove your income. The requirements for each card should be researched prior to applying.
Get a flexible spending account if you can. An FSA can mean serious savings if you wind up with medical bills or need to pay daycare. These types of accounts allow you the ability to set aside money before taxes to pay for these expenses. However, as there are tricks to using this type of account, it is best to seek clarification from an accountant before entering into one.
Try to set up an automatic pay plan to pay credit card balances with a debit card every month. This will make it a little harder to forget.
Financial issues can come up suddenly, without warning, so it’s always good to be prepared. It is always smart to know the late fees associated with late rent payments, and the absolute final day payments are due before late charges accrue. Understand your options before committing to a lease that is a year long.
In order to get the most out of the property that you own, take steps to control the cash flow in to and out of it. Write down your expenses and income so you can have a good grasp on where you stand financially at month’s end. Make sure that you establish a budget up front so that you can look to it as your guideline.
Don’t beat yourself up if you make a mistake with your finances, as everybody does sometimes. If you’ve only ever bounced one check or overdrafted once, ask the bank manager if they will waive the fee. This is a one-time courtesy that is sometimes extended to people who keep a steady balance and avoid overdrafts.
Ensure you have a spending account that is flexible. This money will be tax free so it ends up saving some money.
Real Estate
It is possible to put debt to work to your advantage. An example of a good debt is a real estate investment. For example, owning a home or commercial real estate is generally tax-deductible in terms of interest on the loans, even without taking future appreciation into consideration. Educational debt is also considered good debt. Educational loans are generally low interest, and payments can be deferred until after graduation.
Staying out of debt is your surest bet. Having said that, mortgage and vehicle loans generally are okay, as it is nearly impossible for most people to purchase homes and cars without them. However, as much as possible in your daily finances, avoid credit purchases and either pay cash or go without.
If you plan on sending your children to college, start putting money away from the day they are born. College can be very expensive, so if you wait too long to save the money you may not be able to pay for their education.
You should always have either a debit card, or at least 10 dollars in cash for minor purchases. New laws obligate vendors to have a minimum credit card value.
As proven above, everyone can make changes to live their lives within their financial means and increase their personal worth, leading to the happy financial life that they desire. Common sense combined with this helpful advice can allow you to create a budget, lower your debt, put money aside and control your finances.